What Is the Difference Between STAR Credit and STAR Exemption?

Many New York homeowners believe STAR Credit and STAR Exemption are the same, but they work differently.

The STAR Exemption reduces your school tax bill directly. However, new homeowners generally can no longer enroll in the traditional STAR Exemption program.

Instead, most new homeowners receive the STAR Credit. The credit is paid by New York State as either a check or direct deposit after you register.

If you purchased your home recently and have never received STAR benefits before, you will usually register for the STAR Credit instead of the STAR Exemption. Existing homeowners who have been receiving the STAR Exemption may continue to receive it if they remain eligible.

Many homeowners are also eligible for Enhanced STAR after meeting age and income requirements.

Not sure which STAR benefit applies to your property?

Use AIDOTAX to learn about New York property tax programs, official government forms, and assessment review resources before filing.