If you’re a homeowner in New York, you might be eligible for a financial boost through the School Tax Relief Program (STAR), which can offer up to $2,000 per year in property tax relief. This program is designed to help homeowners by either reducing their property taxes or providing a direct stimulus check, making it easier to manage expenses. Knowing if you qualify and how to apply is crucial to take advantage of this opportunity.
Types
The STAR program has two main options: Basic STAR and Enhanced STAR (E-STAR). Both programs aim to cut down property taxes for New York homeowners, but they have different eligibility criteria based on income and age. Let’s take a closer look at the two options.
Basic STAR
The Basic STAR program is ideal for younger homeowners since it doesn’t have any age requirements. However, to qualify, your household income cannot exceed $250,000. This figure is calculated using the federal adjusted gross income, minus any taxable IRA distributions.
Enhanced STAR
The Enhanced STAR (E-STAR) is targeted at homeowners aged 65 and older. To qualify, your total household income for the 2023 fiscal year must not exceed $93,200. This limit will rise to $98,700 in 2024, allowing more seniors to qualify for this valuable tax relief. Additionally, at least one of the property owners must be 65 years old by the time the exemption period starts.
Benefits
For Basic STAR participants, the average benefit is a property tax reduction of around $290 per year. While this may not sound huge, it can provide meaningful relief over time, particularly for families managing tight budgets.
The E-STAR program offers a larger benefit, with an estimated tax reduction of about $650 annually. This can be especially valuable for seniors on fixed incomes, as it significantly cuts down one of their major fixed expenses—property taxes.
Eligibility
Wondering if you qualify for up to $2,000? Homeowners can benefit from STAR either through a direct credit or an exemption on their property tax bill. If you’re eligible, you may receive a stimulus check, or you might see your property taxes lowered.
However, you must use the property as your primary residence. Married couples can only apply for the STAR benefit on one property unless they are legally separated or divorced.
For those applying for E-STAR, proof of age and income verification are required. The program is adjusted for inflation, which means the income caps and benefits can change, so staying up-to-date with the latest requirements is important.
How to Apply
Applying for STAR is easy and can save you money for years to come. If you aren’t yet receiving STAR benefits, you need to submit an application to the New York State Department of Taxation and Finance. Once approved, the relief can come either as a check or a direct reduction in property taxes.
For those already getting the STAR exemption, switching to the credit version of the program may be more beneficial in the long run. While the exemption value remains static, the credit can increase, giving you more financial relief as time goes on.
Required Documents
To apply, you’ll need to provide documentation that proves your eligibility. This includes income verification for all property owners and their spouses, calculated from your federal adjusted gross income. If you’re applying for E-STAR, proof of age is necessary, such as a valid ID with your birth date.
If a co-owner of the property meets the age and income requirements, such as a spouse or sibling, documentation proving their eligibility will also need to be submitted.
Financial Impact
Applying for the STAR program not only helps with immediate tax relief but can also offer long-term financial peace of mind. As inflation raises the cost of living, reducing fixed costs like property taxes can help keep your budget in check. The extra stimulus check from STAR or E-STAR can be used to cover other needs or set aside for future goals.
For many homeowners, this program is an opportunity to free up funds, reduce the stress of rising taxes, and make the most of their homeownership in New York.
Whether you’re a younger homeowner looking for some financial relief through the Basic STAR or a senior hoping to ease your property tax burden with E-STAR, this program offers a practical way to save. Don’t let the opportunity pass by—apply today and take advantage of the benefits you’re entitled to.
FAQs
What is the income limit for Basic STAR?
For Basic STAR, your household income must be below $250,000.
How much tax reduction does E-STAR offer?
E-STAR offers about a $650 reduction in property taxes.
Can I apply for STAR on multiple properties?
No, you can only apply for one property unless legally separated.
How do I switch from a tax exemption to a credit?
Submit an updated application with the New York Tax Department.
What proof of age is required for E-STAR?
A valid ID showing your birthdate is required for E-STAR applicants.
