New York’s School Tax Relief program, often called the STAR program, sends eligible homeowners a payment each year to help cover school district property taxes. Many people refer to these as STAR program stimulus payments because the money arrives as a check or direct deposit shortly before school taxes come due, but technically it’s a state-funded property tax credit tied to your primary residence. Whether you qualify, and how much you get, depends on your income, your age, and the tax rate in your school district.
How Much the Payment Is Worth
STAR savings are not a flat amount. The state multiplies a base exemption figure by your school district’s tax rate, then caps the result at a maximum for your area. For the 2026–2027 school year, that base is $30,000 for Basic STAR and $88,500 for Enhanced STAR.1New York State Department of Taxation and Finance. Types of STAR Homeowners in higher-tax districts see larger checks; homeowners in low-tax districts see smaller ones. The Department of Taxation and Finance publishes a lookup showing the exact credit and exemption amounts for each municipality and school district.
If you receive the STAR credit rather than the older STAR exemption, the amount can grow by up to 2% each year. The exemption savings are frozen and cannot increase.2New York State Department of Taxation and Finance. STAR Credit and Exemption Savings Amounts That yearly growth adds up over time.
Who Qualifies
Every STAR applicant must own the property and live in it as a primary residence. The state looks at how much time you spend there, where you’re registered to vote, and the address on your driver’s license. Eligible property types include houses, condominiums, cooperative apartments, manufactured homes, and farm dwellings.3New York State Department of Taxation and Finance. STAR Eligibility Properties held by corporations, partnerships, or LLCs generally do not qualify unless they are farm dwellings.
Basic STAR
Basic STAR is open to homeowners of any age. The income ceiling is $500,000 for the STAR credit and $250,000 for the STAR exemption.3New York State Department of Taxation and Finance. STAR Eligibility Since most homeowners today receive the credit, the $500,000 threshold is the one that applies to most people. Income is measured as the combined income of all owners plus any owner’s spouse who lives at the property.
Enhanced STAR
Enhanced STAR provides a larger benefit for senior homeowners. At least one owner who lives at the property must be 65 or older by December 31 of the benefit year. For jointly owned property, only one owner needs to meet the age requirement, whether the co-owners are spouses, siblings, or unrelated. The income limit is adjusted annually for inflation and sits at $110,750 for the 2026 benefit year.3New York State Department of Taxation and Finance. STAR Eligibility
How Income Is Verified
The state pulls income data automatically from tax returns filed two years before the benefit year. For 2026, that means your 2024 return. The figure used is your federal adjusted gross income minus the taxable portion of any IRA distributions.3New York State Department of Taxation and Finance. STAR Eligibility You don’t submit proof of income yourself in most years. Occasionally the tax department mails an income request letter (Form RP-5300-WSC) asking you to confirm your income within 45 days. Ignore it and you lose the benefit for that year.4New York State Department of Taxation and Finance. Respond to a STAR Letter
Credit or Exemption: Which One You Get
STAR comes in two forms. The credit arrives as a check or direct deposit, separate from your tax bill. The exemption reduces the school tax bill itself before you pay it.
The exemption has been closed to new applicants since the 2015–2016 school year. If you’ve received it continuously on the same home since then, you can keep it. Everyone else, including all new homeowners and anyone who moves, must register for the credit.5New York State Department of Taxation and Finance. STAR Resource Center
Exemption recipients can switch to the credit at any time, and there’s a real financial reason to consider it: the credit can grow up to 2% a year, while the exemption cannot.2New York State Department of Taxation and Finance. STAR Credit and Exemption Savings Amounts The trade-off is that switching is permanent. Once you give up the exemption, you can’t go back.6New York State Department of Taxation and Finance. Giving Up a STAR Benefit
One practical note if your school taxes are paid through a mortgage escrow account: the exemption lowers what your lender pays out of escrow, but the credit comes directly to you as a separate payment. If you switch, contact your lender so they can adjust your escrow amount. Otherwise your monthly mortgage payment may stay higher than it needs to be.7New York State Department of Taxation and Finance. Register for STAR or Update Your STAR Registration
How to Register
Registration goes through the New York State Department of Taxation and Finance, either online or by phone. Have ready the names and Social Security numbers of every property owner and any owner’s spouse living at the home, the property address, the school district, and the approximate purchase date (both are on your deed or closing disclosure).7New York State Department of Taxation and Finance. Register for STAR or Update Your STAR Registration
The online portal walks through each field and gives you a confirmation number at the end. If you’d rather register by phone, call 518-457-2036 weekdays between 8:30 a.m. and 4:30 p.m.8New York State Department of Taxation and Finance. Register for the School Tax Relief (STAR) Credit
There is no single statewide deadline. Deadlines vary by municipality, and the tax department publishes a lookup by town and city.9New York State Department of Taxation and Finance. Deadline to Switch to the STAR Credit From the STAR Exemption If you register after your local deadline but on or before December 31 of the benefit year, you should still receive the credit, but registering earlier avoids any risk of missing your school tax due date.
The state mails a paper check by default. To receive your credit by direct deposit, log in to your Individual Online Services account on the tax department website and enroll through the Homeowner Benefit Portal. If you enroll fewer than 15 days before the state issues your credit, you’ll get a paper check for that year and direct deposit will start the next.10New York State Department of Taxation and Finance. Enroll in the STAR Credit Direct Deposit Program
When the Payment Arrives
The state times STAR payments to reach you shortly before school taxes are due in your area. Because due dates differ across districts, the payment schedule differs too. The tax department publishes a STAR Credit Delivery Schedule showing when checks have been or will be mailed for each area.11New York State Department of Taxation and Finance. STAR Credit Delivery Schedule Once you’re registered, the benefit renews automatically each year unless you move or need to update your registration.
If You Move or Sell
STAR benefits do not transfer with you. Sell one home and buy another, and you have to register for the credit on the new property from scratch.12New York State Department of Taxation and Finance. STAR Frequently Asked Questions (FAQs) Eligibility begins the first year you own the new home and use it as your primary residence as of the school tax due date.
A transitional rule softens the gap. If the previous owner had a STAR exemption and the sale closed after the local taxable status date (usually March 1), that exemption carries over to your first school tax bill. You’d then start receiving the STAR credit the following year, once your own registration takes effect.12New York State Department of Taxation and Finance. STAR Frequently Asked Questions (FAQs) If you no longer own a primary residence, no STAR benefit is available.
What STAR Does Not Cover
STAR offsets school district property taxes only. It does not reduce county, town, or general city taxes. The one exception is five cities where the benefit is split between school and city taxes: New York City, Buffalo, Rochester, Yonkers, and Syracuse.13New York State Senate. The School Tax Relief (STAR) Program FAQ
You generally do not need to report a STAR credit check on your New York State income tax return. If you itemize deductions, though, the credit reduces the amount of property tax you can claim, since you didn’t actually pay that portion out of pocket.14New York State Department of Taxation and Finance. How to Report Your Property Tax Credit on Your Income Tax Return
Penalties for False Applications
A material misstatement on a STAR application includes claiming a property as your residence when it isn’t, lying about your age or income for Enhanced STAR, or claiming you gave up a STAR exemption on a former home when you hadn’t. The consequences:
- Disqualification from both the credit and the exemption for six years.
- For exemption recipients, a penalty tax equal to the greater of $100 or 20% of improperly received benefits, up to $2,500. You may also have to repay up to six years of benefits plus interest and a $500 processing fee.
- Criminal prosecution in serious cases.15New York State Department of Taxation and Finance. Penalties Related to the STAR Program
If You’re Denied
The most common reason for denial is failing to respond to an income verification letter within the 45-day window. Whatever the reason, the appeal process is the same: file Form RP-425-SB (Application for State Board Review) within 45 days of the denial notice.4New York State Department of Taxation and Finance. Respond to a STAR Letter Miss that window and you lose the benefit for that tax year with no further recourse. Treat any letter from the tax department about STAR as urgent.