Beyond down payment help, New York offers several tax breaks that lower the ongoing cost of owning a home. Many of them are not automatic, so new owners miss out simply because they never signed up. Here is what to look for after you buy.
STAR: school tax relief (all of New York)
STAR lowers the school tax portion of your property taxes on your primary residence. It covers houses, condos, and co-ops.
| Program | Who qualifies | Income limit |
|---|---|---|
| Basic STAR credit | Any age, primary residence | $500,000 or less (combined income of resident owners and spouses) |
| Enhanced STAR | At least one resident owner 65 or older | $110,750 or less for 2026 benefits |
New buyers must register with the NYS Department of Taxation and Finance. The benefit arrives as a check. Register at tax.ny.gov/star soon after closing.
NYC co-op and condo tax abatement
In the five boroughs, co-op and condo units that are the owner’s primary residence can get a reduction on property taxes. For co-ops, the building usually applies and passes the savings to eligible shareholders. Make sure your managing agent knows the unit is your primary home.
Other property tax exemptions
- Veterans: NYC and most Westchester towns offer a partial exemption for eligible veterans, and some for surviving spouses.
- Seniors: NYC’s Senior Citizen Homeowners’ Exemption (SCHE) and similar programs in Westchester towns reduce taxes for lower-income owners 65 and older.
- Homeowners with disabilities: NYC’s Disabled Homeowners’ Exemption (DHE) and local equivalents in Westchester.
- Clergy and a few other groups have smaller exemptions.
In NYC, apply through the NYC Department of Finance. In Westchester, apply through your town or city assessor. Deadlines matter: missing one can push your savings back a full year.
Lower-cost mortgages
- SONYMA mortgages offer below-market fixed rates for first-time buyers who meet income and price limits.
- SONYMA Homes for Veterans offers an even lower rate for eligible service members and veterans.
- Down payment programs like HPD HomeFirst and SONYMA DPAL. See Down Payment Assistance Programs.
Federal tax benefits
If you itemize on your federal return, you may be able to deduct mortgage interest and part of your property taxes, subject to federal limits. Whether this helps depends on your income and deductions, so ask a tax preparer before counting on it.
After-closing checklist
- Register for the STAR credit.
- Apply for any exemptions you qualify for (veterans, senior, disability).
- Co-op and condo owners: confirm your primary residence status with the managing agent.
- Check your first property tax bill to make sure every exemption shows up.
General information, not tax advice. Limits were checked in September 2026 and change yearly.
Related: First-Time Homebuyers and Closing Cost Estimates. Questions? Contact us.