STAR Credit vs STAR Exemption in NYC
New NYC homeowners get STAR as a state check, not a bill cut. See Basic and Enhanced STAR income limits, how to register after closing and when to switch.
5 min read · Updated
If you bought your NYC home recently, you get STAR as the STAR credit: a check or direct deposit from New York State that you must register for. The older STAR exemption, which lowers the property tax bill itself, is no longer available to new homeowners; only owners who have received it since 2015 can keep it, for the same home.
Both versions come in Basic STAR (any age) and Enhanced STAR (65 and older with lower income). The state Tax Department runs both; NYC’s Department of Finance no longer administers STAR or accepts applications.
At a glance
- Basic STAR credit income limit
- $500,000
- Combined income of resident owners and their spouses
- Basic STAR exemption income limit
- $250,000
- Existing recipients only
- Enhanced STAR income limit
- $110,750 (2026) / $113,550 (2027)
- Plus at least one owner 65+
- How to register
- Online or 518-457-2036
- Homeowner Benefit Portal at tax.ny.gov/star
- Late registration
- Up to 3 years
- From the income tax filing deadline for that credit year
Credit vs exemption: what’s the difference?
| STAR credit | STAR exemption | |
|---|---|---|
| How you get it | Check or direct deposit from NYS | Reduction on your property tax bill |
| Open to new homeowners | ||
| Basic STAR income limit | $500,000 | $250,000 |
| Who administers it | NYS Tax Department | NYS Tax Department (DOF no longer does) |
| Can you switch to the other? | No, you can’t switch back | Yes, to the credit |
| Moving to a new home | Re-register for the new home | Not available at a new home; register for the credit |
The state’s FAQ says that if you still have the exemption, you “may receive a larger benefit if you switch to the STAR credit.” But once you switch, you can’t go back to the exemption.
Who qualifies
| Basic STAR | Enhanced STAR | |
|---|---|---|
| Age | Any | At least one resident owner 65+ by Dec. 31 of the benefit year (some surviving spouses 62+) |
| Income limit, credit | $500,000 | $110,750 for 2026; $113,550 for 2027 |
| Income limit, exemption | $250,000 | $110,750 for 2026; $113,550 for 2027 |
| Whose income | Owners and spouses who live at the property | Owners and spouses who live at the property; non-resident owners not counted |
| Property | Your primary residence | Your primary residence |
| Benefit based on | First $30,000 of full value | First $88,500 of full value (2026–27) |
How the state measures income
STAR income is federal adjusted gross income minus the taxable part of IRA distributions, from the return two years before the benefit year. For 2026 benefits, that’s your 2024 return: Form 1040 line 11 minus line 4b, or NY Form IT-201 line 19 minus line 9. If you didn’t file, the state may write to ask for your income.
Primary residence
The home must be where you live. The Tax Department looks at things like how much time you spend there, where you’re registered to vote, and the address on your vehicle registration and ID, and it may ask for proof.
How to register after closing
- 1
Gather the information
Names and Social Security numbers of all owners and their spouses; your school district; the approximate purchase date and the sellers’ names; your most recent school tax bill, if you have one; the address of any residential property you own in another state; the trust’s legal name if a trust owns the home; and the owners’ 2024 income tax returns. - 2
Register in the Homeowner Benefit Portal
Go to tax.ny.gov/star and register through an Individual Online Services account. It’s open 24/7. Without a computer, call 518-457-2036 weekdays 8:30 a.m. to 4:30 p.m. - 3
Sign up for direct deposit (optional)
The portal lets you enroll in STAR credit direct deposit instead of waiting for a mailed check. - 4
Register once
As long as you stay eligible, you don’t need to register again for the same home. The state reviews your eligibility automatically each year and may ask for proof of residency.
The state says to register as soon as the home becomes your primary residence. In your first year, you may still benefit from the prior owner’s STAR exemption on that year’s bill; after that, the credit comes to you. The state says to expect the credit around the time you receive your school tax bill, and its STAR Credit Delivery Schedule shows when payments begin in your area.
Co-ops and condos
The state lists cooperative apartments as eligible property for STAR. Co-op and condo owners register the same way as house owners, through the state portal, for the apartment that is their primary residence. A married couple can get only one STAR benefit, however many homes they own, unless they are legally separated. The state’s FAQ notes that payments for cooperatives may be on a different schedule.
Upgrading to Enhanced STAR
If you already get Basic STAR, at least one resident owner will be 65 by December 31, and meet the income limit, contact the state Tax Department to upgrade. NYC’s DOF page says to report ownership changes and upgrades from STAR to Enhanced STAR directly to the state.
Switching from the exemption to the credit
Log in to your Individual Online Services account, open the Homeowner Benefit Portal, choose Actions, then “Switch to credit.” Remember the switch is one-way. The Basic exemption has a $250,000 income limit, while the Basic credit goes up to $500,000.
STAR and other NYC tax breaks
STAR can be combined with other benefits. Seniors and people with disabilities may also qualify for SCHE or DHE, which lower the assessed value on the city bill and are run by DOF. Veterans can look at the veterans exemption. Use the STAR credit checker and the SCHE/DHE checker to see where you stand, or browse every NYC property tax break. For how all of this fits into your bill, see NYC property tax explained.
This is general information. The NYS Department of Taxation and Finance makes the final eligibility decision.
Re-verified 2026-10-12 on tax.ny.gov: income limits (Basic credit $500,000, Basic exemption $250,000, Enhanced $110,750 for 2026 and $113,550 for 2027 benefits, combined income of only owners and spouses who reside at the property; Basic income row corrected), age 65 by Dec 31, surviving-spouse 62 rule, income definition and 2024 return lines, primary residence factors, one benefit per married couple, co-ops eligible, exemption closed to new homeowners and kept by 2015+ recipients (eligibility page). Benefit bases ($30,000 Basic; $88,500 Enhanced for 2026-27) and the five-city city/school split (Types of STAR). RP-5310-FS (1/26) checklist, 24/7 portal and 518-457-2036 weekdays 8:30-4:30. FAQ: three-year late registration, larger benefit if switching, no switching back, portal steps, re-register after moving, co-op payment schedule, prior owner exemption in year one, payment around the school tax bill (corrected from "before the bill is due"), automatic annual review. Unverified "municipality deadline" sentence removed. DOF STAR page: DOF no longer administers STAR; report upgrades to the state. No dollar savings figures claimed.
Sources
- STAR eligibility · NYS Department of Taxation and Finance (accessed October 12, 2026)
- Types of STAR · NYS Department of Taxation and Finance (accessed October 12, 2026)
- School Tax Relief (STAR) program · NYS Department of Taxation and Finance (accessed October 12, 2026)
- STAR resource center · NYS Department of Taxation and Finance (accessed October 12, 2026)
- STAR FAQs · NYS Department of Taxation and Finance (accessed October 12, 2026)
- Register for the STAR Credit (RP-5310-FS, 1/26) · NYS Department of Taxation and Finance (accessed October 12, 2026)
- STAR · NYC Department of Finance (accessed October 12, 2026)
General information, not legal, tax or financial advice. Rules change; confirm with the agency or a professional before you act.