Putnam Tax Reduction: STAR, Senior, and Veterans Exemptions

Putnam County homeowners can reduce their property tax bills through four main New York State programs: the School Tax Relief (STAR) program, a senior citizen exemption, two veterans exemptions, and a disability exemption. Each is filed with your town assessor by the March 1 taxable status date, except for the STAR credit, which you register for directly with the state. Several of these benefits stack on the same property, and the largest can cut your assessed value by half.

STAR: The Most Common Reduction

STAR reduces the school tax portion of your bill and comes in two delivery methods. Which one applies depends on when you started receiving the benefit.¹

The STAR exemption appears as a direct reduction on your school tax bill, but it has been closed to new applicants since 2015. If you had it on your current home before that cutoff, you can keep it. Everyone else, including anyone who has bought a home in Putnam County since 2015, must register for the STAR credit through the New York State Department of Taxation and Finance’s Homeowner Benefit Portal. The credit arrives as a check or direct deposit from the state.² A common mistake among new homeowners is waiting for a reduction on their bill that never appears because they never registered with the state.

Basic STAR

Basic STAR is open to all primary-residence homeowners under the income ceiling: $250,000 for the exemption version and $500,000 for the credit version.³ There is no age requirement.

Enhanced STAR

Enhanced STAR offers a larger benefit for homeowners 65 and older. For the 2025 assessment year, the combined income of all owners and any resident spouse could not exceed $107,300, based on 2023 income. The threshold for the 2026–2027 school year is $110,750.⁴ All Enhanced STAR recipients must enroll in the state’s Income Verification Program, which checks eligibility automatically each year through tax records.⁵

Senior Citizen Exemption

Separate from STAR, Real Property Tax Law Section 467 lets local governments and school districts reduce the assessed value of homes owned by residents 65 and older.⁶ It can apply to county, town, and school taxes depending on which local authorities have adopted it, and you can receive it on top of STAR on the same property.

Putnam County uses a sliding scale. For the 2025 tax year, homeowners with income at or below $50,000 receive the maximum 50 percent reduction. The benefit decreases in steps as income rises, bottoming out at a 5 percent reduction for incomes between $57,500 and $58,400.⁷ Income above that ceiling disqualifies you. Thresholds are updated periodically, so confirm the current figures with your town assessor.

At least one owner must turn 65 by the taxable status date (March 1 in most Putnam County towns), the property must be used exclusively as a residence, and you must have owned the home for at least 12 consecutive months before applying.⁸

Veterans Exemptions

Two separate statutes cover veterans, and the components stack. You can receive a base exemption, a combat-zone add-on, and a disability-related add-on on the same property.

Wartime Veterans (Section 458-a)

Veterans who served on active duty during a recognized period of war, or who received an expeditionary medal, qualify under Section 458-a. The exemption has three tiers:⁹

Basic wartime service: 15 percent of assessed value, capped at $12,000 (adjusted by the local equalization rate).
Combat zone service: an additional 10 percent, capped at $8,000, for veterans who received a campaign ribbon, service medal, or expeditionary medal documenting service in a combat theater.
Service-connected disability: an additional reduction equal to half the veteran’s VA disability rating multiplied by the assessed value, capped at $40,000.

The home must be the veteran’s primary residence. The exemption extends to a surviving spouse who has not remarried.¹⁰

Cold War Veterans (Section 458-b)

Veterans who served on active duty between September 2, 1945, and December 26, 1991, qualify under Section 458-b regardless of whether their service fell within a designated war period. Depending on which local option each Putnam County municipality adopted, the exemption is either 10 percent of assessed value (capped at $8,000) or 15 percent (capped at $12,000).¹¹ A service-connected disability adds a further reduction equal to half the disability rating multiplied by the assessed value. Honorable discharge is required for both veterans exemptions.

Disability Exemption

Homeowners with a physical or mental impairment that substantially limits a major life activity, such as walking, seeing, hearing, or working, can qualify under Real Property Tax Law Section 459-c.¹² The maximum reduction is 50 percent of assessed value, with the benefit decreasing on a sliding scale as income rises. The income ceiling is set by each municipality within a range of $3,000 to $50,000 for the maximum reduction, with an optional sliding scale for incomes above $50,000.

Proof of a qualifying disability must come from an official source: an award letter from the Social Security Administration for SSDI or SSI benefits, a certificate from the State Commission for the Blind, a VA disability pension letter, a Workers’ Compensation Board determination of permanent disability, or certain other federal agency awards.¹³ A doctor’s note alone will not satisfy the requirement.

How to Apply and the March 1 Deadline

Every exemption except the STAR credit is filed with your town assessor and must arrive by the taxable status date, which is March 1 in most Putnam County towns.¹⁴ Miss that date and you lose the exemption for the full upcoming tax cycle. Certified mail gives you a paper trail if a dispute arises.

The STAR credit works differently. You register directly with the New York State Department of Taxation and Finance through its Homeowner Benefit Portal. You will need the Social Security numbers of all owners and their spouses, your school district name, the approximate purchase date, and your most recent federal or state income tax return.²

For the senior citizen exemption, Form RP-467 requires disclosure of all household income. You submit a copy of your federal income tax return from the applicable income year, which is typically two calendar years before the assessment year when the taxable status date falls on or before April 14.⁶ If you did not file a tax return, provide alternative documentation such as Social Security benefit statements, pension records, or the supplemental worksheet (Form RP-467-Wkst).⁸ Proof of age (driver’s license, birth certificate, or passport) is also required.

Veterans applying under Section 458-a or 458-b need discharge papers (DD-214 or equivalent) showing service dates and character of discharge. If claiming the disability component, include your VA disability rating letter. Forms are available from your town assessor or the Department of Taxation and Finance website.

Which Exemptions Renew Automatically

After the first year, the paperwork rules diverge. The legacy STAR exemption renews automatically as long as you keep meeting eligibility requirements and participate in the Income Verification Program for Enhanced STAR. The STAR credit also renews automatically once you register, though checking your registration status each year through the online portal is worth the few minutes it takes.

The senior citizen exemption under Section 467 and the disability exemption under Section 459-c are different. Both require an annual application. You need to resubmit the form with current income documentation to your assessor before March 1 every year. Skipping a year costs you the reduction even if nothing about your situation has changed. Veterans exemptions, by contrast, do not require annual renewal once initially granted, provided you continue living in the home.

A Note on the Assessment Itself

Exemptions reduce the taxable portion of your assessed value, but if the underlying assessment is inflated, you are overpaying even with every exemption you qualify for applied. That is a separate process: a grievance filed on Form RP-524 with the Board of Assessment Review, with the tentative roll typically published May 1 and Grievance Day in late May or June.¹⁵ If your assessment looks too high relative to recent sales in your neighborhood, pursuing a grievance is worth considering alongside the exemptions above.

1
New York State Department of Taxation and Finance. STAR Exemption Program
2
New York State Department of Taxation and Finance. Register for STAR or Update Your STAR Registration
3
New York State Department of Taxation and Finance. Types of STAR
4
New York State Department of Taxation and Finance. Deadline to Upgrade to the Enhanced STAR Property Tax Exemption
5
New York State Department of Taxation and Finance. Assessor Manuals, Exemption Administration – RPTL Section 425
6
New York State Senate. New York State Code RPT 467 – Persons Sixty-Five Years of Age or Over
7
Putnam County, NY. Article V – Senior Citizens Exemption
8
New York State Department of Taxation and Finance. Assessor Manuals, Exemption Administration – RPTL Section 467
9
New York State Senate. New York Code RPT 458-A – Veterans Alternative Exemption
10
New York State Department of Taxation and Finance. Assessor Manuals, Exemption Administration – RPTL Section 458-a
11
New York State Senate. New York Code RPT 458-B – Exemption for Cold War Veterans
12
New York State Senate. New York Real Property Tax Code 459-C – Persons With Disabilities and Limited Incomes
13
New York Justice Center. Exemption for Persons With Disabilities and Limited Incomes
14
New York State Department of Taxation and Finance. Property Tax Calendar
15
New York State Department of Taxation and Finance. Grievance Procedures