Why This Matters
Property taxes are one of the largest ongoing costs of owning a home in NYC. The city and state offer several exemptions that reduce that bill — but they're not automatic. You have to apply, and many eligible homeowners simply don't, leaving real money on the table year after year.
This is the homeowner counterpart to the tax breaks developers receive (like 467-m for office conversions). The difference: these exemptions are for ordinary owner-occupants, and they're widely underclaimed.
STAR — School Tax Relief
STAR is the most widely applicable exemption. It reduces the school-tax portion of your property tax bill on your primary residence.
- Basic STAR: available to owner-occupants whose total household income is under the state's threshold (income limits apply). There is no age requirement.
- Enhanced STAR: a larger benefit for senior homeowners (65+) who meet a lower income limit.
New STAR recipients generally receive the benefit as a check or direct credit rather than an upfront reduction on the bill. If you've owned and lived in your home and never signed up for STAR, you may be eligible — and you may be missing an annual benefit.
SCHE — Senior Citizen Homeowners' Exemption
SCHE reduces property taxes for senior homeowners.
- For homeowners 65 or older
- Subject to an income limit
- Can reduce the assessed value of your home for tax purposes by up to 50%, depending on income
- All owners must generally be 65+ (with exceptions for spouses/siblings)
SCHE can be combined with Enhanced STAR for significant senior savings.
DHE — Disabled Homeowners' Exemption
DHE works like SCHE but for homeowners with disabilities.
- For homeowners with a qualifying disability
- Subject to an income limit
- Can reduce assessed value by up to 50% depending on income
- Documentation of the disability is required
Other Exemptions Worth Knowing
- Veterans' exemptions — for eligible veterans and, in some cases, their spouses
- Clergy exemption — for eligible members of the clergy
- Cooperative and condominium tax abatement — for owners of co-op and condo units used as a primary residence
How to Apply
Applications are handled by the NYC Department of Finance. Key points:
- Apply at nyc.gov/finance or by mail
- Application deadlines vary by program and year — many fall in the spring for the following tax year, so check current deadlines early and don't wait
- You'll need proof of age, income, residency, and (for DHE) disability
- Once granted, some exemptions renew automatically; others require periodic renewal — confirm which applies to yours
The Bottom Line
If you own and live in your NYC home and haven't reviewed your property tax exemptions recently, it's worth an hour of your time. Between STAR, SCHE, DHE, and the co-op/condo abatement, an eligible homeowner — especially a senior — could be saving meaningfully each year. Check your latest property tax bill: it lists which exemptions, if any, you're currently receiving.
Because eligibility and dollar amounts depend on current income limits and assessment rules that change, confirm the latest figures and deadlines directly with the NYC Department of Finance before relying on a specific number.
Frequently Asked Questions
What property tax exemptions are available to NYC homeowners? The main ones are STAR (School Tax Relief), SCHE (Senior Citizen Homeowners' Exemption), DHE (Disabled Homeowners' Exemption), veterans' exemptions, the clergy exemption, and the co-op/condo property tax abatement.
What's the difference between Basic and Enhanced STAR? Basic STAR is for owner-occupants under the income threshold with no age requirement; Enhanced STAR is a larger benefit for seniors 65+ who meet a lower income limit.
How do I apply for NYC property tax exemptions? Through the NYC Department of Finance at nyc.gov/finance. Filing deadlines vary by program and year, so check current dates with the Department of Finance and have proof of age, income, and residency ready.
Can I combine exemptions? Some can be combined — for example, Enhanced STAR with SCHE for eligible seniors. Confirm specifics with the Department of Finance.
Related NYC Housing Guides
- Deed Theft Is Rising in NYC. How to Protect Your Home
- What Is the 467-m Tax Break — and Why It's Reshaping NYC Housing
- Can a NYC Co-op Board Reject You?
Sources: NYC Department of Finance (property tax exemptions); NY State STAR program; NYC co-op/condo tax abatement. This article is for informational purposes only and does not constitute tax or financial advice.
