2019 Changes in the STAR Property Tax Credit

If you own a primary residence in New York State and you make less than $500,000 per year, you need to be aware of the 2019 changes in the STAR property tax credit. If you make more than $500,000, you do not qualify for STAR and therefore do not need to take any action. For everyone else, you may or may not need to do something. As with everything government, this is more complicated than it needs to be.

First, a little clarification. There are two ways to participate in the STAR program. One is called STAR credit and the other STAR exemption. STAR credit is where you pay the full tax bill and the state sends you a check giving you some of your money back. STAR exemption is where you receive a reduction on your school tax bill and pay less.

Going forward, you will want to be in STAR credit (receive check in the mail), if possible, because that can increase by as much as 2% per year whereas STAR exemption (reduction on bill) cannot increase. If you make over $250,000 but less than or equal to $500,000, you will be moved to STAR credit. If you make less than $250,000 and are currently receiving STAR exemption, you will have the choice to move to STAR credit or stay with the exemption.

You may receive a letter in the mail from the state asking you to update your STAR registration. This link https://www.tax.ny.gov/star/default.htm#expanded-content-menu1 will take you to their site, where you can read more details and make changes.