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 simply 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 & Deadlines

STAR -- the New York State School Tax Relief Program
There are two types of STAR benefit: Basic STAR and Enhanced STAR. Basic STAR is available to all resident owners of 1-, 2-, and 3-family houses, condominiums, and cooperative apartments and has no income or age limit. In addition, owners of 4-, 5, and 6-family homes where the owner resides in the building may also be eligible for Basic STAR, with the exemption only applying to the portion of the building occupied by the owner. Seniors (age 65 or over as of December 31st of the exemption benefit year) with an annual adjusted gross income of $74,700 or less may be entitled to Enhanced STAR, which offers a higher tax reduction.

Most homeowners who have basic STAR save about $201 a year on their property taxes. Enhanced STAR generally offers an additional tax savings of approximately $180 per year to eligible recipients.

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; that is, the house, condominium, or cooperative apartment that you live in for the majority 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 will be age 65 or older by December 31st, and whose Federal Adjusted Gross Income, reduced by unreimbursed medical expenses, is less than $37,400 a year may qualify for a reduction to their assessed value of 5% - 50% (depending on income) for fiscal year 2011 (7/1/10 thru 6/30/11). Homeowners who receive SCHE also automatically receive STAR and Enhanced STAR.

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. In all other instances of co-ownership, all owners must be 65 or over to qualify.

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

To Estimate How Much SCHE (and DHE) Saves You Tax Dollars:
As an example using a class 1 property: Without a tax exemption such as SCHE or DHE, your property tax is calculated this way: Multiply the assessed value of your eligible residence by the tax rate for Class 1 properties (16.787% or .16787). If your assessed value is $15,000 then $15,000 x .16787 = $2,581 which is your annual property tax without a tax exemption such as SCHE or DHE.

However, if you qualify for SCHE (or DHE), and based on your income, the exemption lowers your assessed value by 10%, your new assessed value would be $13,500. Multiply $13,500 by the same tax rate (16.787%), and your new tax assessment would be $2,266 - a tax savings of $252 a year!

SCHE Eligibility
The property must serve as the owner's primary residence; that is, the house, condominium, or cooperative apartment that you live in for the majority 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 during one of the following periods of war or 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)

The spouse of a qualified veteran, the unremarried surviving spouse of a qualified veteran, a 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), or the registered domestic partner of a qualified veteran are also eligible for this exemption.

There are three levels of benefits depending on whether the veteran served in combat and/or was disabled. Exemptions are also subject to dollar limitations, pursuant to state and local law.

Note: The property must be the primary residence of the applicant(s).

Exemption Rates:

• An exemption equal to 1) 15 percent of the property's assessed value or 2) $4,140 for Class 1 properties and $24,300 for Class 2 & Class 4 properties (whichever is less) is granted to eligible veterans who served during a specified period of war.
  
• An additional 10 percent exemption or ($6,900 for Class 1 properties; $40,500 for Class 2 & Class 4 properties, whichever is less) is available to eligible veterans who served in a combat zone.
  
• An additional exemption may be granted to eligible disabled veterans equal to the product of the assessed value of the property and 50 percent of the veteran's disability rating or ($13,800 for Class 1 properties; $81,000 for Class 2 & Class 4 properties, whichever is less). Please note that Gold Star parents are not eligible for this portion of the Veterans' Exemption.

Property tax class groups covered in the Veteran’s exemption:

• Class 1: Includes most residential property of up to three units (such as one-, two-, and three-family homes and small stores or offices with one or two apartments attached); vacant land that is zoned for residential use; and most condominiums that are not more than three stories.
  
• Class 2: Includes all other property that is primarily residential, such as cooperatives and condominiums.
  
• Class 4: Includes all commercial and industrial property, such as office or factory buildings.
  

Please be advised that the New York State law approving a Cold War Veterans exemption became effective January 3, 2008. However, the exemption will not become effective in New York City until the City Council passes a local law approving it. No local law has been enacted to allow an exemption for Cold War veterans.

Veteran Exemption Eligibility
The property must serve as the owner's primary residence; that is, the house, condominium, or cooperative apartment that you live in for the majority of the year and the address where you are registered to vote.

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Military Request for Relief
Active duty military personnel may request relief from the Lien Sale, Tax Warrants, Environmental Control Board judgments, and parking judgments by completing an affidavit that provides information about their military service. Download Application (34k)

Military Request for Relief Eligibility
The property must serve as the owner's primary residence; that is, the house, condominium, or cooperative apartment that you live in for the majority of the year and the address where you are registered to vote.

Disabled Homeowners' Exemption (DHE)
Low-income homeowners with disabilities may also be eligible to a 5% - 50% tax reduction refer to the SCHE exemption described above. Applicant(s) 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.  In all other instances of co-ownership, all owners must qualify as disabled.

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

DHE Eligibility
The property must serve as the owner's primary residence; that is, the house, condominium, or cooperative apartment that you live in for the majority of the year and the address where you are registered to vote.

Clergy Exemption
A Clergy exemption is available for one (1) property owned by a clergy member.  The member of the clergy (or, if the member of the clergy is 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.

In addition, 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
The Cooperative and Condominium Abatement Program provides partial tax relief for condo owners and co-op tenant-shareholders to reduce the disparity in property tax paid between residential Class 2 properties (i.e., condominiums and cooperatives) and Class 1 properties (i.e., 1-, 2-, and 3-family homes) which are assessed at a lower percentage of market value.  To be eligible for the abatement, condominium owners and cooperative tenant-shareholders, as of the applicable taxable status date, may own no more than three dwelling units in any one property. Units held by sponsors or their successors in interest are not eligible. If you are filing for the abatement only, you do not need to occupy the property in order to receive the abatement.

However, you must occupy the property if you are filing for exemptions such as STAR, SCHE, Veterans, or DHE.

The abatement granted to eligible units is based on the average assessed value in the building, as indicated in the chart:

Cooperative and Condominium Managing Agents
Cooperative and condominium developments can apply for the abatement. The development's Board of Directors, managing agent, or other official representative of the development must complete the Condominium/Cooperative Property Tax Abatement application.
More information for coop and condo managing agents

Forms
Finance has made it easier for individual homeowners to apply for property tax reduction programs with a consolidated Exemption and Abatement Application. The two-page form allows you to apply for six different tax reductions at once. We also provided instructions and applications in Chinese, Russian, and Spanish. 

Fill-out the information, which must be completed in English for all applications, and mail it to the address below. Please keep a copy of all correspondence and applications for your records. Finance will determine your eligibility and grant all exemptions and abatements for which you qualify.

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.

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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 16^th.
  
  
• For the Co-Op / Condo Abatement, the Exemption and Abatement Application must be received by
  February 15^th.

Note: If a statutory tax due date falls on a weekend or national holiday, the tax will be due on the first business day thereafter.

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