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Department of Taxation and Finance

Property tax relief credit

The property tax relief credit directly reduces your property tax burden if you are a qualifying homeowner. If you’re eligible for the credit, we’ll automatically send you a check.

To be eligible, you must:

  • live in a school district that is complying with the New York State property tax cap (see School district compliance to learn if yours did),
  • receive either the Basic or Enhanced STAR exemption or credit,
  • have an income of $275,000 or less, and
  • have paid school property taxes in 2018.

The amount of the credit is a percentage of the eligible homeowner's STAR savings.

Basic STAR recipients

If you’re receiving the Basic STAR exemption or credit and you’re eligible for the property tax relief credit, your credit amount will be a certain percentage (determined by your income) of your Basic STAR savings.

Percentage of Basic STAR savings according to income
If your 2016 income is:Your 2018 property tax relief credit will be this percentage of your STAR savings:
$75,000 or less 60.0%
between $75,000 and $150,000 42.5%
between $150,000 and $200,000 25.0%
between $200,000 and $275,000 7.5%

Enhanced STAR recipients

Your credit will be 26% of your Enhanced STAR savings. Your income doesn’t impact the amount of your credit.

Credit limitations

Whether you’re receiving Basic or Enhanced STAR, the credit you receive can’t be greater than the school district taxes for your property.

Definition of income for property tax relief

For the 2018 property tax relief credit, income is defined as 2016 federal adjusted gross income (FAGI) modified so that:

  • the net amount of loss reported on Federal Schedule C, D, E or F doesn’t exceed $3,000; 
  • the net amount of any other separate category of loss doesn’t exceed $3,000; and
  • the aggregate amount of all losses doesn’t exceed $15,000.

Note: for the 2019 property tax relief credit, income will be defined using 2017 FAGI with the modifications above.

Phase-in schedule

The property tax credit program began in 2016, and will be fully phased in in 2019. See Property tax relief credit amounts for additional information.

New York City residents

New York City is not subject to the tax cap and therefore, city residents aren’t eligible for this credit. If you are a New York City homeowner or renter, you may, however, be eligible for the New York City enhanced real property tax credit.

Resources

Updated: