Senior Citizen Homeowners' Exemption (SCHE) in NYC

If every owner of your NYC home is 65 or older and the owners and their spouses together earn $58,399 a year or less, the Senior Citizen Homeowners' Exemption (SCHE) can cut your home's taxable assessed value by 5% to 50%. You apply to the NYC Department of Finance (DOF) by March 15, and the lower your income, the bigger the cut.

SCHE is one of the largest property tax breaks a New York City homeowner can get, and it is not automatic. This guide covers who qualifies, how DOF counts your income, how the sliding scale works, how SCHE sits alongside Enhanced STAR, and the deadlines that trip people up.

Who qualifies for SCHE

DOF lists four tests. You must pass all of them.

1. Age

Every owner must be 65 or older. The exception: if the owners are married to each other or are siblings, only one of them has to be 65. DOF's FAQ adds that when an age-eligible spouse dies, a surviving spouse who is not yet 65 can keep SCHE if they are at least 62; a surviving sibling must be 65.

2. Income

The combined annual income of all owners and their spouses cannot be more than $58,399. That is a household cap for the owners, not a per-person cap, and a spouse's income counts even if the spouse is not on the deed.

3. Ownership

You must have owned the property for at least 12 consecutive months before you file, unless you received the exemption on a previous home. Eligible property types on the application are one- to three-family houses, condos and co-ops; owners of a building with four or more units can apply for the share of the building they live in, and the form asks for that percentage.

4. Primary residence

All owners must live in the home as their primary residence. DOF makes exceptions for an owner who is divorced, legally separated or has abandoned the property (with legal documentation), and for an owner receiving in-patient care in a residential health care facility.

How DOF counts your income

For most applicants, income means federal adjusted gross income (AGI) minus the taxable amount of any IRA or individual retirement annuity distributions. So IRA withdrawals do not count against you, but IRA earnings, Social Security, pensions, wages, interest, dividends, capital gains, net rental income and net self-employment income do.

If you don't file tax returns, DOF uses the amounts you would have reported, and you send copies of every income source (Social Security statements, 1099s, pension statements and so on).

Owners who already had SCHE before June 13, 2024 may use an older "alternative" method, which totals specified income sources and lets you subtract unreimbursed medical and prescription drug expenses. DOF publishes an optional Income Calculation Worksheet if you want to check your math before applying.

The SCHE sliding scale

SCHE reduces your property's assessed value, the number your tax is calculated on. The reduction depends on your combined income:

The steps are steep near the top. Earning $57,499 instead of $50,000 drops the cut from 50% to 10%, so it is worth making sure every allowable subtraction (such as the taxable part of IRA distributions) is applied.

A worked example

Say the part of your annual tax bill that SCHE applies to would be $4,000 without any exemption (a made-up figure for illustration; your bill depends on your assessed value and the tax rate for your class).

• Income $48,000 → 50% reduction → roughly $2,000 less tax a year.
• Income $54,000 → 25% reduction → roughly $1,000 less.
• Income $58,000 → 5% reduction → roughly $200 less.

The real saving shows on your Notice of Property Value and tax bill. Use the NYC property tax estimator to see your baseline bill.

SCHE and Enhanced STAR

SCHE and STAR are separate programs run by different governments, and seniors often qualify for both:

DOF no longer administers STAR, so applying for SCHE does not sign you up for Enhanced STAR. New homeowners get STAR as a credit (a check or direct deposit) rather than a bill reduction. If you already have Basic STAR and turned 65, contact the state to upgrade. Check your numbers with the STAR credit checker and read STAR credit vs STAR exemption in NYC.

You cannot get SCHE and the Disabled Homeowners' Exemption (DHE) at the same time. If you qualify for both, DOF gives you SCHE.

How to apply

1. 1

   Find your borough, block and lot

   It is on your tax bill, deed or Notice of Property Value. Co-op owners can ask the managing agent.
2. 2

   Gather proof of age and income

   A birth certificate, passport, driver’s license or other government ID with your date of birth for each owner, plus your latest federal or state tax return with all schedules and 1099s (or copies of every income source if you don’t file).
3. 3

   Add any extra documents that apply

   A death certificate for a deceased owner, the will or probate order if you inherited the home, the Trust & Life Estate Certification Form for a trust or life estate, divorce or separation papers, or a facility letter showing the cost of care.
4. 4

   File online or by mail by March 15

   DOF’s online application (there is a separate co-op version) is open September 28 to March 15 and is the fastest route. Paper applications go to DOF Homeowner Tax Benefits, P.O. Box 311, Maplewood, NJ 07040-0311. All owners must sign.
5. 5

   Watch for the approval

   If you file by the deadline and are approved, the benefit applies to the tax year starting July 1.

Timing, renewals and co-ops

• Deadline: March 15 (the next business day if it falls on a weekend or holiday) for the tax year beginning July 1.
• Not on your Notice of Property Value? If you had not filed or been approved by January 5, the benefit won't appear on that notice. If you filed on time and are approved, it shows on a later bill with a credit back to July 1.
• Renewal: every two years. DOF mails a notice; you can renew online. Ignoring the notice can cost you the exemption.
• Co-ops: you apply through DOF, but the benefit is applied to the building and your board or managing agent must credit it to your unit, usually through maintenance. It is never paid as a refund check.
• Changes: you must tell DOF about changes that affect eligibility, such as a new owner or moving out.

This guide is general information, not tax or legal advice. Rules and the income cap can change; confirm your situation with DOF by calling 311 or using DOF's online exemptions contact form.