STAR, the New York State School Tax Relief program offers a rebate check or exemption on a section of school property taxes for owner-occupied main homes. Applications for STARs and registrations must be submitted before January 2, 2025’s Taxable Status Date.
New York State Star Rebate Check
The New York State School Tax Relief Program, STAR, offers a partial exemption from or credit for school property taxes for owner-occupied primary residences of one, two, and three-family homes, farm homes, condominiums, cooperative apartments, or multiple-use properties of which the owner primarily resides.
Getting STAR applications and registrations will enable the January 2, 2025, Taxable Status Date to be in line. Some years ago, New York State drastically changed the STAR program by removing the STAR tax exemption for new applications and beginning a separate STAR tax credit for new registrants.
You may not get a credit or an exemption. Rather than a lowered school tax payment, New STAR program members now get their STAR cost savings as a check sent by the New York State Department of Taxation and Finance (NYSDTF).
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STAR Exemption & Rebate Programs
For owner-occupied main homes, STAR—the New York State School Tax Relief program—offers a rebate check or exemption on a section of school property taxes. STAR exemptions or rebates come in two flavors: basic and enhanced.
Basic STAR
- Basic STAR covers owner-occupied primary houses regardless of age. New STAR applicants as well as current Basic STAR exemption holders with household income greater than $250,000 and less than or equal to $500,000 will receive a STAR credit in the form of a check mailed by the New York State Department of Taxation and Finance.
- If their family income is $250,000 or less, current Basic STAR exemptees may keep receiving their STAR exemption for the same main property. Homeowners whose STAR benefits are shifted from an exemption to a credit will be personally notified by New York State.
- Any homeowner who pays their school taxes via a mortgage escrow account might want to let their lender know they have been moved from the STAR exemption to the STAR credit.
Enhanced STAR
- Under Enhanced STAR eligible older individuals might get reduced school taxes. All owners have to be at least 65 years of age in the year the benefit starts to run. Should owners be spouses or siblings, only one resident owner must be at least 65.
- The household income cap for the 2023 income tax year cannot be more than $107,300. The income limit encompasses the aggregate income of every owner—residents and non-residents as well as the spouse of any owner living on the property.
How to Apply for the STAR Rebate Check?
To apply for the STAR credit or to substitute the STAR exemption for the STAR credit, kindly visit the STAR website or call 518- 457-2036 from 8:30 am to 4:30 pm. Homeowners who registered for the STAR credit will not have to register once again going forward unless their property ownership changes.
Reviewing STAR credit registrations annually, the New York State Department of Taxation and Finance will ascertain if a homeowner qualifies for the Basic or Enhanced STAR credit and will write a check for the corresponding benefit. Simple application for the STAR rebate check
- Online registration for new candidates may be done via the New York State Department of Taxation and Finance website https://www.tax.ny.gov/star/. The registration procedure calls for simple information about the property and its owners.
- Those homeowners getting the STAR rebate payment don’t have to reapply every year. Enhanced STAR participants, particularly regarding income and age, must verify their eligibility yearly, nevertheless.
- Currently, immediately on their tax bills, homeowners eligible for a STAR exemption may decide to convert to the STAR credit program and get the rebate check instead. This action could be useful for homeowners looking for rapid financial benefits instead of a reduction in their property tax burden.
Eligibility for the STAR Rebate Check
Data on household incomes for 2023 directs income eligibility for the 2025/2026 school tax year. Income is defined as minus any “taxable amount” of IRA distributions, the amount stated as Federal “Adjusted Gross Income”. Homeowners must satisfy the following requirements to be qualified for the STAR rebate check:
- The property has to be the main house of the homeowner.
- The combined income of the property owners and their spouses has to be $250,000 or less for Basic STAR and $93,200 or less for Enhanced STAR.
- At least one owner for the Enhanced STAR benefit must be 65 years of age or older by December 31 of the year the exemption will be applicable.
- Homeowners must apply for or renew their STAR credit by the time established by the New York State Department of Taxation and Finance.
Benefits of the STAR Rebate Check
Homeowners gain from the STAR rebate check in numerous ways:
- Unlike the STAR exemption, which offers indirect savings via reduced tax rates, the rebate check gives homeowners direct cash assistance.
- The rebate check may be used for any reason—to save for the future, pay bills, or cover household needs.
- Senior homeowners gain most from the Enhanced STAR program and related rebate check, which enable fixed income financial management.