Aid for those most in need is undergoing changes due to reforms to the One Big and Beautiful Bill Act. The STAR (School Tax Relief) program provides financial assistance of up to $1,500, although to receive it, senior homeowners must meet requirements based on age, place of residence, and financial situation. New York’s STAR tax program offers financial relief to thousands of homeowners, so it’s important to be aware of all the requirements to apply on time.
The main objective of this benefit is to help reduce the school tax burden
New York Governor Kathy Hochul has enabled payments for most senior homeowners in October, who will receive a check corresponding to the Enhanced STAR credit in amounts ranging from $700 to $1,500. The main objective of this benefit is to help reduce the school tax burden for New York homeowners. Its goal is to support families and seniors residing in their primary residence within the state. In 2025, those who qualify could receive up to $1,000 in credits or exemptions, just in time for October.
Among the requirements is that owners must be at least 65 years old by December 31 of the exemption year, except when the home is jointly owned by only a married couple or only siblings, in which case only one of the owners must meet the age requirement. Additionally, you must own the home and live in it as your primary residence; the combined income of the owners and their spouses living in the property must not exceed $500,000 per year. It should be noted that there are two ways to claim this benefit.
The benefit can be received as a direct tax credit or as an exemption from the school tax
These modalities are divided between Basic STAR and Enhanced STAR. On the one hand, the Basic STAR is designed for homeowners of any age with moderate income; On the other hand, the Enhanced STAR (E-STAR) is designed for people over 65 years of age who meet stricter age and income requirements. In both cases, the benefit can be received as a direct tax credit or as an exemption from the school tax, depending on the situation.
Regarding Enhanced STAR, the $1,500 stimulus is linked to the enhanced modality. The requirement is to be 65 years of age or older by December 31, 2025, as mentioned before. Combined income must not exceed $107,300 per year. This benefit is usually greater than Basic STAR and is designed to support seniors with limited incomes. As for couples, a married couple can receive only one STAR benefit, regardless of how much property they own, unless they are legally separated.
It is important to have all documents up to date
To qualify for this benefit, it is essential to meet several requirements, such as completing all the requested information with the names and Social Security numbers of all owners and their spouses; detailing the name of the school district where the primary residence is located; attaching the approximate date of purchase of the property; including the names of the sellers; including the most recent school tax bill, if the current owners received one; adding the address of any residential property owned in another state; the legal name of the trust, if applicable; very importantly, including banking information (routing and account numbers); and finally, including the federal or state tax returns of all owners. It is important to have all documents up to date to successfully complete the process.
New applicants will receive the benefit as a tax credit, meaning by check or direct deposit. Those with previous exemptions can retain them or, if they prefer, opt for the tax credit. In any case, it’s important to stay informed about changes in requirements and keep in mind that each case is unique. Therefore, if you have any questions, it’s best to visit an office or official information center.
