Turning 65 anytime in 2026? If you currently have the Basic STAR Exemption, you are no longer required to apply for the Enhanced STAR Exemption with the local Assessor’s office. Beginning this year the NYS Department of Taxation will review your financial statements from income tax returns and determine if you qualify for the Enhanced STAR exemption. The State Department of Taxation Finance will notify property owners and the Assessment office if they qualify for an Enhanced STAR exemption. If the State needs more information to determine eligibility, such as in cases of someone who does not file an income tax return, the State will send a letter to the property owner requesting information.
The Enhanced STAR exemption applies only to school taxes and is for residential property, owner occupied property of owners aged 65 {as of December 31, 2026} or over. The maximum allowable income under this exemption is $110,750, 2024 FAGI minus taxable IRA payment. Note: Beginning in 2026, the Enhanced STAR income limit will apply only to the combined incomes of the owners and their spouses who primarily reside on the property. (For the 2025 benefit year and prior years, the Enhanced STAR income limit applied to the combined incomes of all owners (residents and non-residents), and any owner's spouse who resided at the property).