STAR

EXEMPTION

New York is known for having some of the highest real estate taxes in the country, which can be a burden for homeowners. However, New York offers several tax relief programs, including the School Tax Relief (STAR) exemption. In this article, we'll explore what the STAR exemption is, how it works, and who is eligible.

What is the STAR Exemption?

The STAR exemption is a tax relief program offered by the State of New York for owner-occupied primary residences. It's designed to help reduce the property tax burden for homeowners and provide relief for school district taxes. The program was introduced in 1997, and it's one of the most significant property tax relief programs in the state.

How Does the STAR Exemption Work?

The STAR exemption works by reducing the taxable assessed value of a homeowner's primary residence by a specific amount. The amount of the reduction depends on the location of the property and the homeowner's income. In general, the STAR exemption applies to school district taxes, but some areas also offer a STAR exemption for local property taxes.

The STAR exemption is available to homeowners who meet specific eligibility requirements. To be eligible for the exemption, the homeowner must:

1. Own and live in the property as their primary residence

2. Have a household income of less than $500,000

3. Not own any other properties

There are two types of STAR exemptions: Basic and Enhanced. The Basic STAR exemption is available to all homeowners who meet the eligibility requirements, regardless of their age or income. The Enhanced STAR exemption is available to homeowners who are 65 years or older with a household income of $90,550 or less.

How to Apply for the STAR Exemption?

Homeowners can apply for the STAR exemption by filling out an application online on the website of the New York State Department of Taxation and Finance link here. The application must be submitted by the deadline, which is typically March 1st of the year in which the exemption will take effect. Homeowners must renew their STAR exemption annually by verifying their income with the state.

Conclusion

The STAR exemption is a valuable tax relief program offered by the State of New York for owner-occupied primary residences. It helps reduce the property tax burden for homeowners and provides relief for school district taxes. Homeowners who meet the eligibility requirements can apply for the Basic or Enhanced STAR exemption and must renew their exemption annually by verifying their income with the state. If you're a homeowner in New York, it's essential to explore all available tax relief programs and take advantage of them to reduce your property tax burden.

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Before making the largest purchase of your life, schedule a consultation with our attorneys at Julian K. White in Manhattan by calling 212-701-4550. We can shed light on a complex process, giving you the information you need to make the right purchase.