STAR property tax relief
There have been some changes in how certain homeowners will apply for STAR, and in how they receive their STAR benefit. The STAR program continues to provide much-needed property tax relief to New York State’s homeowners.
New applicants who qualify for STAR will register with New York State instead of applying with their assessor.
If they qualify, they will receive a STAR credit in the form of a check, rather than receiving a property tax exemption. The dollar value of the credit will be the same as the property tax exemption.
|If you||then you|
|are receiving a STAR exemption and purchased your current home prior to May 1, 2014,||don’t need to register; you will continue to receive the STAR exemption.To learn more, see STAR exemption program.|
|purchased your home between May 1, 2014, and August 1, 2015,||need to register to receive the STAR credit if:
Otherwise, no action is necessary; you will continue to receive the STAR exemption.
|purchased your home after August 1, 2015,||need to register for the STAR credit.|
For additional information, call the New York State Tax Department at (518) 457-2036.
Types of STAR
Whether you receive the STAR exemption or the credit, there are two types of STAR benefits:
- available for owner-occupied, primary residences where the resident owners’ and their spouses’ income is less than $500,000
- based on the first $30,000 of the full value of a home
- provides an increased benefit for the primary residences of senior citizens (age 65 and older) with qualifying incomes ($86,000 or less)
- based on the first $65,300 of the full value of a home
The STAR benefit applies only to school district taxes. It doesn’t apply to property taxes for other purposes, such as county, town or city (though special rules apply in the state’s five biggest cities, namely, New York City, Buffalo, Rochester, Yonkers, and Syracuse).
Note: senior citizens receiving STAR may also be eligible for the senior citizens exemption—learn more.
|RP-425 (Fill-in)||Application for School Tax Relief (STAR) Exemption|
|RP-425-IVP (Fill-in)||School Tax Relief (STAR) Exemption; Optional Income Verification Program|
|RP-425-Rnw (Fill-in)||Renewal Application for Enhanced School Tax Relief (STAR) Exemption|
|RP-425-TPN (Fill-in)||Request for Mailing of Notice to a Third Party Regarding Enhanced STAR Exemption|
|RP-425-Wkst (Fill-in||Income for STAR Purposes Worksheet|
STAR—Income Verification Program
The Income Verification Program allows eligible homeowners who apply or re-apply for Enhanced STAR to authorize New York State Department of Taxation and Finance to verify their income in subsequent years. This option is available only if the homeowner files a New York State resident income tax return.
Note: The information on this page does not apply to new STAR applicants. They will now register for the STAR credit with the New York State Department of Taxation and Finance, instead of applying for the exemption. See Register for the STAR credit to learn more.
Participants in the Income Verification Program do not need to reapply each year. The Tax Department will automatically verify their income, based on their filed New York State personal income tax return.
The Income Verification Program is not mandatory, however if a senior citizen chooses not to participate, they must continue to reapply with their local assessor for Enhanced STAR each year and attach a copy of their tax return.
The assessor must then send them an application form every year, with a reminder that the homeowner must reapply for Enhanced STAR by taxable status date.
If a senior citizen who initially decided not to participate in the Income Verification Program later decides to opt in, they may do so and follow the procedure below.
A homeowner who received Basic STAR on their 2015-2016 School Tax bill and who is now an eligible senior may upgrade to Enhanced STAR and elect to participate in IVP as follows:
- Submit a paper application form (RP-425-E) to their local assessor by taxable status date.
- Include a copy of their federal or state income tax return for the applicable income tax year. (For example, a homeowner needs to provide their 2015 income tax return for the 2017 assessment rolls, and their 2016 income tax return for the 2018 assessment rolls.)
- Submit Form RP-425-IVP, STAR Income Verification Application, and provide their social security number at that time.
Participants in IVP do not need to reapply each year as long as they continue to file a New York State resident income tax return.