The School Tax Relief (STAR) Program in New York offers valuable financial relief to homeowners by reducing their property tax burden. Through two distinct levels of benefits—Basic STAR and Enhanced STAR—homeowners can significantly ease their school tax payments.
Overview of STAR Benefits
The STAR program provides two tiers of assistance:
- Basic STAR: Offers an average annual benefit of $778.
- Enhanced STAR: Provides an average benefit of $1,407, specifically designed for seniors who meet certain income and age requirements.
These benefits are generally reflected on tax bills between August and December each year. Homeowners are advised to ensure their contact information is accurate to avoid any delays in receiving their benefits.
Types of STAR Exemptions
There are two categories under the STAR program:
- Basic STAR
- Enhanced STAR
Enhanced STAR Eligibility and Income Limits
The Enhanced STAR exemption caters to homeowners aged 65 and older. To qualify for the Enhanced STAR benefit, homeowners must meet specific income requirements, which are adjusted annually. In 2024, the income limit for this exemption is set at $98,700, and by 2025, it will rise to $107,300.
Key eligibility criteria for the Enhanced STAR exemption include:
- Age Requirement: You must be 65 or older by December 31, 2024. For properties owned jointly, only one spouse or sibling needs to meet the age requirement.
- Primary Residence: The home must be your primary residence.
- Income Limit: The combined income of all property owners must be $93,200 or less. This includes both resident and non-resident owners, as well as any spouse living at the property. Income for STAR purposes is based on federal adjusted gross income (minus taxable IRA distributions).
To confirm income eligibility, homeowners can refer to their 2023 federal or state tax returns:
- Federal Form 1040: Check line 11 for adjusted gross income and subtract the taxable portion of IRA distributions (line 4B).
- New York State Form IT-201: Resident Income Tax Return.
Benefit Distribution Timeline
Most STAR benefit checks are issued between August and December, with the bulk of recipients receiving their payments by September. Homeowners who meet the requirements and file on time can expect to see their relief soon.
