Do I get the STAR exemption or the STAR credit?
Most New York homeowners who are applying now should be looking at the STAR credit, not the old STAR exemption.
The New York State Tax Department says STAR can be received in two ways. The STAR credit is a check or direct deposit from the state. The STAR exemption is a reduction on the school tax bill.
The important rule is this: the STAR exemption is no longer open to new homeowners. If you bought a home recently, moved to a new home, or never had the STAR exemption on your current home in 2015, you usually need to register for the STAR credit.
If you already receive the STAR exemption on the same primary residence, you may be able to keep it as long as you stay eligible. Do not switch casually. Once you switch from the exemption to the credit, New York says you cannot switch back.
Last checked: May 19, 2026. This guide is based mainly on official New York State Tax Department STAR pages. HomesteadExemption.org is not a government agency and does not file STAR registrations.
Does New York have a homestead exemption?
New York does not use one simple statewide property-tax “homestead exemption” label the way some other states do for ordinary homeowners.
For most New York homeowners, the main primary-residence school tax benefit is called STAR, which stands for School Tax Relief. STAR is the homestead-style issue this page is about because it is tied to ownership, primary residence, school taxes, income, age for Enhanced STAR, and the way the home is listed with the state and local assessing office.
STAR is not the same thing as a bankruptcy homestead exemption. A bankruptcy homestead exemption is a separate legal protection issue. This page is only about New York STAR for a homeowner’s primary residence.
STAR credit vs STAR exemption at a glance
The names sound close, but the way the benefit reaches you is different.
| Issue | STAR credit | STAR exemption |
|---|---|---|
| How it shows up | A check or direct deposit from New York State. | A reduction on your school tax bill. |
| Who uses it now | New homeowners and most first-time STAR applicants. | Generally only homeowners who already had the exemption on the same primary residence since 2015. |
| Where to start | The state’s Homeowner Benefit Portal. | Your school tax bill, local assessor, and the Homeowner Benefit Portal for updates and status. |
| Basic STAR income limit | The official STAR eligibility page lists $500,000 or less. | The official STAR eligibility page lists $250,000 or less. |
| Enhanced STAR | May be issued as a larger credit for eligible seniors. | May continue as a larger exemption for eligible seniors who are current exemption recipients. |
| Can you receive both? | No. New York says you may receive either the STAR credit or the STAR exemption, not both. | |
| If you switch | You receive STAR as a state payment if eligible. | New York says switching away from the exemption is irreversible. |
The short rule for new homeowners
If you are a new homeowner in New York, do not assume the STAR exemption on a prior owner’s tax bill belongs to you long term.
The Tax Department explains in its STAR homeowner guidance that a prior owner’s STAR exemption may carry over to your first school tax bill in certain situations. That does not mean you can keep that exemption in later years. You still need to register for the STAR credit if you want New York to review you for STAR on your home.
New York also says you should register as soon as possible after you move into your new home. If you change primary residences later, you need to register again for the new property.
What Basic STAR means
Basic STAR is the regular STAR level. It is not limited by age.
The home must be an owner-occupied primary residence. The official Types of STAR page says Basic STAR is based on the first $30,000 of the full value of a home.
For the STAR credit, the Basic STAR income limit is higher than the old Basic STAR exemption income limit. The Tax Department’s eligibility page lists the Basic STAR credit income limit as $500,000 or less. It lists the Basic STAR exemption income limit as $250,000 or less.
That income difference is one reason some longtime exemption recipients receive letters telling them they may no longer qualify for the exemption but may qualify for the credit. If you receive a STAR letter, do not ignore it.
What Enhanced STAR means
Enhanced STAR is the larger STAR level for eligible senior homeowners.
For current 2026 rules, the Tax Department says only one resident owner must be at least 65 by December 31 of the benefit year. The official eligibility page also says surviving spouses may be able to keep an existing Enhanced STAR benefit in some situations.
The official Types of STAR page lists the Enhanced STAR income limit as $110,750 or less for the 2026-2027 school year. It also lists Enhanced STAR as based on the first $88,500 of the full value of a home for that school year.
Do not use an old income limit from an old form, county page, blog post, or tax bill insert. STAR income limits can change. Use the current state page before acting.
What income does New York count for STAR?
New York does not simply ask for the number you think of as “take-home pay.”
The Tax Department says STAR income means federal adjusted gross income minus the taxable amount of total IRA distributions. For 2026 STAR, New York says income eligibility is based on federal or state income tax return information from the 2024 tax year.
The current state page gives line-by-line instructions for Form 1040 and New York Form IT-201. Use the official STAR eligibility page if your income is close to the limit or if you had IRA distributions.
Where the STAR benefit applies
STAR is tied mainly to school taxes. The Tax Department says STAR applies only to school district taxes. It does not apply to county, town, or city taxes, except in New York City, Buffalo, Rochester, Yonkers, and Syracuse. In those five cities, the exemption is applied partly to city taxes and partly to school taxes.
This is why the STAR question is not the same as asking whether your whole property tax bill can be reduced. A homeowner may still owe county, town, city, village, or other local charges even if STAR applies.
Where to start if you are not receiving STAR now
If you own and live in the home as your primary residence, start with the state registration process. The state says new homeowners and homeowners not receiving a STAR benefit on their current home should register as soon as the home becomes their primary residence.
- Go to the official Register for STAR page.
- Log in to, or create, a New York State Individual Online Services account.
- Open Real property tax, then the Homeowner Benefit Portal.
- Select Register and follow the prompts for the STAR credit.
- Save the confirmation number from the confirmation screen or email.
Before you start, the state says to have information ready for all owners and owners’ spouses. This can include names, Social Security numbers, the school district, purchase date, recent school tax bill if available, trust name if applicable, and recent federal or state income tax information.
Which office handles what?
STAR can be confusing because more than one office may appear on your paperwork.
- New York State Tax Department: STAR credit registration, credit status, direct deposit, many STAR letters, and the Homeowner Benefit Portal.
- Local assessor: Local assessment records and exemption-related local records. Current STAR exemption recipients may still see local assessor involvement, especially where forms or assessment records are involved.
- School tax collector or local tax receiver: Payment of the school tax bill. They usually cannot decide whether you qualify for STAR.
- Mortgage servicer: Escrow handling. If your school taxes are paid from escrow, the switch from exemption to credit may affect how your escrow is estimated.
If you are looking for an exemption form, use the official STAR exemption forms page carefully. New York says exemption applications generally go to the local assessor, but the Basic STAR exemption form is discontinued and the exemption program is closed to new applicants.
How to tell whether you have the credit or the exemption
Look in two places.
First, review your school tax bill. If you have the STAR exemption, the bill should show a reduction for STAR. If you receive the STAR credit, the bill may not be reduced by STAR because the state sends the payment separately.
Second, use the Homeowner Benefit Portal. New York says homeowners can use the portal to check the status of property tax registrations, switch to the STAR credit, view or edit registrations, close registrations, and resolve issues.
If you are expecting a STAR credit, you can also use the state’s Property Tax Credit Lookup. The Tax Department says this lookup can show STAR credit information from 2018 to the present, including the credit year, issue date, property address, property key, and amount.
Be careful before switching from exemption to credit
Some current STAR exemption recipients consider switching to the STAR credit. In some years and places, the credit may be worth more than the exemption. New York provides a STAR credit and exemption comparison page for checking local amounts.
But the decision matters. The Tax Department’s Giving up a STAR benefit page says that giving up the STAR exemption is irreversible. This includes switching to the credit. You cannot switch back to the exemption later.
If your escrow, school tax bill, sale plans, trust documents, divorce order, or estate situation is complicated, slow down and verify before switching.
Deadlines and timing are not the same for everyone
There is not one simple STAR date that answers every homeowner’s situation.
If you are registering for the STAR credit as a new homeowner, New York says to register as soon as possible after the home becomes your primary residence. Its homeowner guidance says registration may be accepted for up to three years from the income tax filing deadline for the year covered by the credit. That does not mean waiting is a good idea. Waiting can delay review and payment.
If you are switching from the STAR exemption to the STAR credit, timing depends on your local deadline. The state has a deadline lookup for switching. If you register before the deadline, New York says you can receive your first credit in the year you register, if eligible. If you register after the deadline but by December 31, the exemption generally stays on the bill for that year, and the credit begins the following year if you remain eligible.
If you are waiting for a credit payment, use the STAR Credit Delivery Schedule. The state says it cannot give every homeowner a specific issue date. The schedule is local and depends on county, school district, and city or town.
If you receive a STAR letter
Open it and match the form number.
The state’s Respond to a STAR letter page says New York may send letters to request information, confirm eligibility, notify a homeowner about a benefit change, or explain a STAR program change. New York says the form number is in the bottom-left corner of the letter.
Many STAR letters have response deadlines. The state says homeowners usually have 45 days from the date of the letter to respond. Do not assume the letter is just a notice. Some letters require action to avoid losing or delaying STAR.
One common letter is about income. For example, the state page for Form RP-425-RDM explains that a homeowner may be over the Basic STAR exemption income limit but may still be reviewed for the STAR credit after registering. If you receive that kind of letter, follow the official instructions, not a third-party filing service.
If you are late, denied, or missing a credit
Start by finding out which problem you have. The answer is different for a late registration, a denied registration, a missing check, a direct deposit problem, or a bill that already included an exemption.
If you are late registering
Register through the official STAR registration page and keep your confirmation number. Then check your status in the Homeowner Benefit Portal. If you are trying to switch from the exemption to the credit, use the switching deadline lookup because the first year of credit depends on that deadline.
If you were denied because of primary residence
STAR is for a primary residence. The Tax Department says it may look at facts such as the length of time spent at the property, voter registration, vehicle registration, and government ID address. If your situation is unusual, gather documents before responding.
If you are missing a credit payment
Check your school tax bill first. If the bill already had the STAR exemption, you are not also eligible for a STAR credit for that year. If the bill did not show the exemption, use the Property Tax Credit Lookup and the STAR Credit Delivery Schedule.
If your school tax bill is due
Do not hold the bill because a STAR credit has not arrived. New York says homeowners must pay school district taxes by the deadline whether or not the STAR credit has been received. Late school taxes can lead to interest, penalties, or both.
Ownership changes, trusts, life estates, divorce, and death
STAR is tied to ownership and primary residence. This is where mistakes happen.
The STAR exemption program page says current exemption recipients must update their registration if they continue to own the property but file a new deed because of marriage, divorce, surrender of interest by a co-owner, survivorship, trusts, life estates, or name changes.
If you are a current exemption recipient and a co-owner is added or removed because of marriage, divorce, or death, New York’s homeowner guidance says you may not have to switch to the credit if you received the exemption in 2015 and continue to own the home.
Trusts and life estates require extra care. The current eligibility page says a trust beneficiary who conveyed the home to trustees but continues to live there may be treated as the homeowner for STAR. It also says a life tenant is treated as the owner for exemption purposes. Do not assume every trust or deed wording works the same way. Check the official eligibility page and your local assessor’s records.
Documents and facts to gather before you start
You do not need every item in every situation, but having the right facts makes the process easier.
- Names and Social Security numbers for all owners and owners’ spouses.
- The property address and school district.
- The date the current owners bought the home.
- A recent school tax bill, if you have one.
- Federal or New York income tax return information for the tax year New York is using.
- Information about other residential property owned in another state.
- Trust name, life estate documents, deed changes, or court papers if ownership is unusual.
- Any STAR letter you received, including the form number and date.
- Your Homeowner Benefit Portal confirmation number, if you already registered.
Avoid paid filing-service confusion
You do not need to pay a private website just to find the official STAR starting point.
Use the New York State Tax Department’s official STAR pages. The Homeowner Benefit Portal is the state tool for STAR credit registration, status checks, direct deposit, switching to the credit, and registration updates.
HomesteadExemption.org is an independent informational website. It is not a government agency, law firm, tax-prep company, assessor, property appraiser, tax collector, benefits office, or filing service.
Official sources used for this guide
Independent editorial note
This guide uses official New York State Tax Department sources and other high-trust government materials when needed. STAR rules, income limits, portal steps, letter procedures, and local timing can change. Before you act, confirm your situation with the official New York State Tax Department, your Homeowner Benefit Portal account, your school tax bill, or the local office listed on your assessment or tax documents.