Tax Reductions for Individual Property Owners

The City and State of New York offer a number of tax reduction programs to qualified individual owners of 1-, 2-, and 3-family houses, condominiums, and cooperative apartments.  Many homeowners are entitled to reductions in their property taxes, but do not receive them because they have never applied. 

These are the property tax exemption and abatement benefits administered by Finance:

STAR -- the New York State School Tax Relief Program (Basic
and Enhanced)
Star Exemption Brochure & FAQ
Senior Citizen Homeowners' Exemption (SCHE)
Veterans' Exemption
Military Request for Relief
Disabled Homeowners' Exemption (DHE)
Clergy Exemption
Cooperative and Condominium Tax Abatement
Forms, Brochures & Deadlines

It is important to file applications before the deadline to take advantage of all the benefits offered. 

Exemption and Abatement Application Deadline is March 15th for STAR and all other benefits, for benefits to begin on July 1st of the filing year; and February 15th for Co-Op/Condo Abatement.  If application due date falls on a weeked or national holiday, the deadline will become the next business day after.



STAR -- the New York State School Tax Relief Program
There are two types of STAR benefit: Basic and Enhanced.

Basic STAR is available to all resident owners of 1-, 2-, and 3-family houses, condominiums, and cooperative apartments. There is no income or age limit. Owners of 4-, 5, and 6-family homes, where the owner resides in the building, may also be eligible for Basic STAR.  However, the exemption only applies to the portion of the building occupied by the owner.  Most homeowners who have basic STAR save about $201 a year on their property taxes.

Enhanced STAR (for Seniors, age 65 or over as of December 31st of the exemption year) with an annual adjusted gross income of $74,700 or less, may be entitled to a higher tax reduction through Enhanced STAR.  This program generally offers an additional tax savings of approximately $196 per year to the Basic STAR.

STAR Exemption Brochure
Answers to the Most Frequently Asked Questions about the Basic and Enhanced STAR (School Tax Relief) Property Tax Exemptions.
Download information

STAR Eligibility
The property must serve as the owner's primary residence. This means the house, condominium, or cooperative apartment you live in most of the year and the address where you are registered to vote.

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Senior Citizen Homeowners' Exemption (SCHE)
Owners of 1-, 2-, and 3-family houses, condominiums, or cooperative apartments who are age 65 or older by December 31st, may qualify for a reduction to their assessed value for that property tax year. For example, an eligible senior with a birthday from Jan. 1, 2010 to Dec. 31, 2010 will receive a property tax reduction for July 1, 2010 to June 30, 2011. 

The amount of reduction is based on the combined Federal Income Tax Return figures for all owners. The Adjusted Gross Income (AGI) is first reduced by unreimbursed medical expenses.  The net combined amount must be less than $37,400.

The income tax year prior to July of the new property tax year is used.   For example, you would use the AGI for the 2009 income tax year to figure the benefit for the new property tax starting July 2010.  Homeowners who apply and receive SCHE will also automatically receive both STAR and Enhanced STAR benefits.

If a husband/wife, siblings or registered domestic partners own the property, only one owner needs to be 65 or over by December 31st to qualify for SCHE.  Please remember the income for all owners is used.

In other co-ownerships, for example: a 65-year-old parent and child or children,  the income for ALL the co-owners must be used.  This usually disqualifies the senior for SCHE if the children are still working.

Note: Taxpayers applying for SCHE or Disabled Homeowners' Exemption (DHE) are only entitled to have one of the exemptions.

Estimate How Much SCHE (and DHE) Saves You Taxes:
If you qualify for SCHE (or DHE) the table below will help you estimate how much you can save if your application is approved.

SCHE Eligibility
The property must serve as the owner's primary residence. This means the house, condominium, or cooperative apartment lived in most of the year and the address where you are registered to vote.

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Veterans' Exemption
A qualified veteran is one who served in the armed forces during one of the following periods of war.  The property must be the primary residence of the applicant(s).

• Persian Gulf Conflict (beginning August 2, 1990)
• Vietnam War (February 28, 1961 to May 7, 1975)
• Korean War (June 27, 1950 to January 31, 1955)
• World War II (December 7, 1941 to December 31, 1946)
• World War I (April 6, 1917 to November 11, 1918)
• Mexican Border Period (May 9, 1916 to April 5, 1917)

Veteran Exemption Eligibility
The property must serve as the owner's primary residence. This means the house, condominium, or cooperative apartment you live in most of the year and the address where you are registered to vote.  Other owners who are eligible:

• Wife or husband of a qualified veteran
• Surviving spouse of a qualified veteran (who has not remarried)
• Gold Star parent (the parent of a child who died in the line of duty while serving in the US armed forces during one of the periods above) 
• Registered domestic partner of a qualified veteran

There are three levels of Exemption Rates for eligible veterans who:
      1. served during a specified period of war.
      2. served in a combat zone.
      3. are disabled

• Class 1: Includes most residential property of up to three units (such as one-, two-, and three-family homes - small stores or offices with one or two attached apartments,) and most condominiums not more than three stories.
• Class 2: Includes all other property fully or partially residential, such as cooperatives and condominiums.
• Class 4: Includes all commercial and industrial property, such as office or factory buildings, provided a section is the primary residence of the applicant(s).

Please be advised the New York State law approving a Cold War Veterans exemption became effective January 3, 2008. However, the exemption is not available in New York City until the City Council passes a local law approving it.  No local law has currently been enacted.

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Military Request for Relief From Lien Sale and Other Issues
Active military personnel may request relief from the Lien Sale, Tax Warrants, Environmental Control Board judgments, and parking judgments. Download and complete the affidavit to provide information about your military service. Download Application (34k)

Disabled Homeowners' Exemption (DHE)
Low-income homeowners with disabilities may receive a tax reduction like the SCHE exemption described above.

The applicant must have a disability, defined as a physical or mental impairment not due to current use of alcohol or illegal drugs.

If a husband/wife, siblings, or registered domestic partners own the property, only one owner needs to have a disability to qualify for DHE.  All owners must qualify as disabled for other types of co-ownership.

Note: Taxpayers applying for DHE or the Senior Citizens Homeowners' Exemption (SCHE) are only entitled to have one or the other.

DHE Eligibility
The property must be the owner's primary residence. This means the house, condominium, or cooperative apartment you live in most of the year and the address where you are registered to vote.

Clergy Exemption
A Clergy exemption is available for one property owned by a clergy member.  He or she (or if deceased, the widow/er) does not have to occupy the property to gain the exemption.  He/she must be a resident of New York State.  Cooperative apartments are not eligible.

Requirements

The Clergy Member must:

1. Perform work assigned by the denomination to which they belong; or
2. Be unable to perform such work due to illness or impairment; or
3. Be over the age of 70.

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Cooperative and Condominium Abatement
This program provides partial tax relief for owners of condominium and cooperative units. This reduces the unfair difference in property tax between condo/co-ops and 1-, 2-, and 3-family homes.

Eligibility
Shareholders may not own more than three units in any building.  Units held by sponsors are not eligible. If filing for the abatement only, you do not have to occupy the property to receive it.

Who must File the Abatement Application?
Only the he Board of Directors, managing agent, or other official representative of the development can complete the Condominium/Cooperative Property Tax Abatement application.  Individual owners may not file for themselves.
More information for coop and condo managing agents

Owners must occupy the unit and send in individual applications if they are filing for other exemptions such as STAR, SCHE, Veterans, or DHE.

The abatement is granted based on the average assessed value of the eligible units in the building.

Forms

 Download Condominium Co-Op Abatement Application

Exemption and Abatement Application for Owners
 Download English Application (76k)
 Download Chinese-Language Version (3.34M)
 Download Russian-Language Version (4.03M)
 Download Spanish-Language Version (853k)


Mail the form to:
NYC Department of Finance
P.O. Box 3120
Church Street Station
New York, NY 10008-3120

You can also fax the completed application to Finance at 212-361-7799.

Brochures

Tax Savings Programs for Individual NYC Property Owners
 Download Brochure (80K)

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Deadlines
For benefits to begin on July 1^st of the filing year:

• For STAR and all other program benefits, the Exemption and Abatement Application must be received by March 15^th.
  
• For the Co-Op / Condo Abatement, the Exemption and Abatement Application must be received by February 15^th.

Note: If an application due date falls on a weekend or national holiday, the deadline will become the next business day after.

Contact Us

E-mail Finance regarding exemption eligibility, policy, and application status

Related Information
Crime Victim and Good Samaritan Exemption
Learn about this and other programs available through Access NYC