Tax Reduction Programs for Residential Property

Frequently used documents are available in:

Tax Reductions for Residential Property

The City and State of New York offer a number of Individual Property Tax Exemption and Abatement Programs to qualified residential property owners.

The NYC Department of Finance administers:

Exemption Benefits
421a
421b
421g
Clergy Exemption
Crime Victim and Good Samaritan Exemption
Disabled Homeowners' Exemption (DHE)
Senior Citizen Homeowners' Exemption (SCHE)
STAR -- the New York State School Tax Relief Program
Veteran Exemption

Abatement Benefits
Cooperative and Condominium Tax Abatement
Green Roof Tax Abatement
J-51
Solar Electric Generating Systems Tax Abatement

Other Benefits
DRIE Landlord and Tenant Information
Military Request for Relief
SCRIE Landlord and Tenant Information

Deadlines, Forms & Publications
Deadlines
Forms & Publications

Exemption Benefits

421a
This program promotes construction of residential buildings. The buildings must have at least three dwelling units.
More information

421b
Developed to encourage affordable home ownership through new construction or major renovation of one- and two-family homes. More information

421g
Encouraged the conversion of non-residential buildings in Lower Manhattan to residential use. This program is currently no longer accepting new applications. More information

Clergy Exemption
A clergy exemption is available for one property owned by a clergy member. The clergy member (or, if deceased, the unmarried surviving spouse who has not remarried) must own the property, but does not have to occupy it for the exemption. He/she must be a resident of New York State. Cooperative apartments are not eligible. The clergy member must:

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

Forms & Publications

Crime Victim and Good Samaritan Exemption
The Crime Victim and Good Samaritan Exemption provides property tax exemption benefits for people who suffer a disability as a result of a crime. One-, two-, or three-family homes must be modified to assist with access and use of the property. More information

Disabled Homeowners' Exemption (DHE)
DHE is granted to owners of 1-, 2-, and 3-family houses, condominiums, or cooperative apartments who meet disability status, income and residency requirements.

All owners must have a disability, defined as a physical or mental impairment, not due to the use of alcohol or illegal drugs. Exception: If you co-own your property with a spouse, registered domestic partner, or sibling, only one of you needs to have a disability.
The combined income of all owners must be less than $37,400, whether or not they live on the property. The application instructions list the sources of income included for determining eligibility for DHE.
If the property owners are spouses, siblings or registered domestic partners, it must be the primary residence of at least one owner. In all other cases, it must be the primary residence of all owners. The primary residence is the house, condominium, or cooperative apartment that one lives in for the majority of the year

Property owners cannot have both DHE and SCHE (the Senior Citizen Homeowner Exemption). If a property qualifies for both, Finance will grant SCHE.

To Estimate How Much DHE or SCHE Saves You:
If you qualify for DHE or SCHE the table below will help you estimate how much you might save.

If the Owners' Income Is Between	(DHE/SCHE) Can Reduce The Assessed Value By
$36,500 and $37,399	5%
$35,600 and $36,499	10%
$34,700 and $35,599	15%
$33,800 and $34,699	20%
$32,900 and $33,799	25%
$32,000 and $32,899	30%
$31,000 and $31,999	35%
$30,000 and $30,999	40%
$29,000 and $29,999	45%
$0 and $28,999	50%

Forms & Publications

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Senior Citizen Homeowners' Exemption (SCHE)
SCHE is granted to owners of 1-, 2-, and 3-family houses, condominiums, or cooperative apartments who meet age, income and residency requirements.

Age: You must be 65 or older by the December 31st following the March 15th due date of the application. If you co-own your property with a spouse, registered domestic partner, or sibling, only one of you needs to meet this requirement. For other co-ownerships such as a parent and children, all co-owners must meet this requirement.
Income: The combined income of all owners must be less than $37,400, whether or not they live on the property. The application instructions list the sources of income included for determining SCHE eligibility.
Primary Residence: The property must be the primary residence of all owners. The primary residence is where one lives for the majority of the year.

Homeowners who apply for and receive SCHE will also receive Enhanced STAR benefits.

Property owners cannot have both SCHE and DHE (the Disabled Homeowner Exemption). If a property qualifies for both, Finance will grant SCHE.

Forms & Publications

STAR -- The New York State School Tax Relief Program
There are two types of STAR benefits: Basic and Enhanced. In both cases, the property must be at least one owner’s primary residence, that is, the house, condominium, or cooperative apartment the owner lives in for the majority of the year.

Basic STAR. There is no age limit. Beginning July 1, 2011, total combined household income must be $500,000 or less. (Previously there was no income limit.) Most homeowners who have Basic STAR can save about $200 a year on their NYC property taxes.

Enhanced STAR Seniors age 65 or over (as of the December 31st following the March 15th due date of the application) with total combined household income of $79,050 or less may be entitled to Enhanced STAR instead of Basic STAR. This program offers a savings of about $400 per year. Homeowners who apply for and receive SCHE will also receive Enhanced STAR benefits.

For purposes of STAR, income is defined as adjusted gross income (AGI) minus any taxable IRA distributions.

Forms & Publications

Veteran Exemption
The Veteran’s Exemption can be applied to Class 1, Class 2 and Class 4 properties. A qualified veteran is one who served in the armed forces during one of the following periods of conflict:

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)

Note: The New York State law adding benefits for other conflicts is currently pending approval in NYC.

The property must be the primary residence of the applicant(s). This means you must live in the house, condominium, or cooperative apartment more than six months a year. 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

Exemption Rates for Eligible Veterans:

Requirements for Eligible Veterans	Percentage Assessed Value Reduction	Maximum Exemption Rate Reduction
Served during a specified period of war (See list above)	15%	Max of $4,140 for Class 1; $24,300 for Classes 2 and 4
Served in a combat zone	Plus 10%	Max of $6,900 for Class 1; $40,500 for Classes 2 & 4
Disabled (Gold Star parents are not eligible for this portion of the Vet’s Exemption)	Assessed value multiplied by 50% of the Vet’s disability rating	Max of $13,800 for Class 1; $81,000 for Classes 2 & 4

Forms & Publications

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Abatement Benefits

Cooperative and Condominium Tax Abatement
A partial tax relief for owners of condominium and cooperative units. This reduces the difference in property tax between condo/co-ops and 1-, 2-, and 3-family homes. The Board of Directors, Managing Agent, or other official representative of a development must complete the Condominium/Cooperative Property Tax Abatement application for the entire development. More information for coop and condo managing agents

The abatement is granted based on the average assessed value of the eligible units in the building. Shareholders may not own more than three units in the development. Units held by sponsors are not eligible.

Abatement percentages are granted according to the following table:

Average Assessed Value Per Unit	Fiscal Year	Abatement
Less than or equal to $15,000	1999 and after	25 %
	1998	16 %
	1997	4 %
Greater than $15,000	1999 and after	17.5 %
	1998	10.75 %
	1997	2.75 %

Owners of Cooperative Apartment Units
Coop unit owners may receive the following exemptions: Basic or Enhanced School Tax Relief (STAR), Disabled Homeowner, Senior Citizen Homeowner and Veteran. Their associations may also apply for the Condo/Coop Abatement. Click “Residential Property” below for more information about these programs.

To find out what exemptions you are receiving in the current tax year (July to June), contact your management company. If you call in January or February, the management company will have information for the current tax year, and you will still have time to apply for benefits in the next tax year.

Green Roof Tax Abatement
State law allows tax abatements for "Green Roofs". The tax abatement is equal to $4.50 per square foot of green roof space. The maximum benefit of the abatement is $100,000 or the tax liability of the eligible building – whichever is less. Condominium abatements are apportioned to the individual condominium units. Properties cannot receive both the green roof abatement and any of the following benefits: the ICAP abatement; 421-g; 421-a or 421-b while paying only the statutory minimum tax under these statutes; and properties that pay PILOTs. Applications must be filed by March 15th. Abatements are for one year beginning the July 1 that follows Department of Buildings approval.
arrow graphic NYC Department of Buildings Green Roof Fact Sheet
NYC Department of Buildings Green Roof Abatement
Form & Instructions

J-51
The J-51 Benefit gives partial tax exemption and abatement benefits for the renovation of residential properties. The benefits vary depending on how much the property was improved and its location. More information

Solar Electric Generating System Tax Abatement
State law allows tax abatements for installing solar electric generating systems in class 1-, 2- & 4- properties. When the Solar Electric Generating System (SEGS) abatement is applied for prior to January 1, 2011 it may equal 8.75% of eligible SEGS expenditures; the amount of property taxes payable for the year; or $62,500– whichever is least. If applied for between January 1, 2011 and December 31, 2011 the abatement may equal 5% of eligible SEGS expenditures; the amount of property taxes payable for the year; or $62,500– whichever is less. Condominium abatements are apportioned to the individual units. Properties receiving the ICAP abatement; 421-g benefits; 421-a or 421-b benefits while paying only the minimum tax under these statutes; or those paying PILOTs, are ineligible for the SEGS tax abatement. Applications must be filed by March 15. The abatement’s four-year period starts on the July 1st following Department of Buildings approval.
arrow graphic NYC Department of Buildings Solar Electric Fact Sheet
NYC Department of Buildings Solar Panel Abatement Form

Other Benefits

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.
Military Personnel Application
Finance Memorandum 05-3

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Deadlines, Forms & Publications

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

The Exemption Application for Owners, including all required documents, must be postmarked by March 15.
The Condominium/Cooperative Abatement Application must be submitted no later than February 15.

Exception: If the date falls on a weekend or President's Day, the deadline will become the next business day.

Exemption Benefit Forms & Publications

Exemption Application for Owners
(Clergy, DHE, SCHE, STAR, and Veterans Exemptions)
Note: The Exemption Application for Owners has changed. Starting October 1, 2011 we will only accept the 2012/2013 application posted below.
English Application

STAR Exemption FAQ

Application for Change in Exemption Status
This application can only be used to report a change in a current exemption status, including: The property is no longer used as your primary residence, you have a change in income or there is a change in your Veterans disability pecentage. This application cannot be used to request a new exemption. For such requests, you would have to use the Exemption Application for Owners.
Download Form
Requesting an Adjustment to Tax Exemptions FAQ

Abatement Benefit Forms & Publications

Condominium/Cooperative Property Tax Abatement
Application (Entire development)
arrow graphic NYC Department of Buildings Green Roof Fact Sheet
NYC Department of Buildings Green Roof Abatement Form &
Instructions
NYC Department of Buildings Solar Electric Fact Sheet
NYC Department of Buildings Solar Panel Abatement Form

Other Benefit Forms & Publications
DRIE Landlord and Tenant Information
Military Request for Relief from Lien Sale and Other Issues
SCRIE Landlord and Tenant Information

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

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