In response to ongoing inflation pressures, the State of New York has expanded its School Tax Relief (STAR) Program for 2025. This initiative now offers relief payments of up to $1,500 to more than two million eligible residents. The expansion is a major step toward reducing the financial strain caused by rising property tax bills, especially for middle-income families and senior citizens.
Governor Kathy Hochul formally announced the beginning of the STAR payment season in a press briefing, highlighting its economic relief role. “Summer marks the beginning of the STAR tax relief season for millions of New Yorkers,” she noted. With this statement, the administration emphasized the program’s alignment with inflationary challenges, rising homeownership costs, and the need for direct support.
How the STAR Program Works in 2025
The School Tax Relief Program (STAR) remains a cornerstone of property tax relief in New York. It’s designed to reduce school tax burdens on primary residences through either direct financial credits or property tax exemptions.
There are two payment structures available under STAR:
- Tax Exemption: The benefit reduces the school property tax bill directly.
- STAR Credit: A direct payment issued either via check or direct deposit to qualified recipients.
Eligibility and benefits vary depending on property ownership, income level, and the age of the homeowner.
STAR Payment Tiers: Basic vs Enhanced
The program divides residents into two main categories—Basic STAR and Enhanced STAR—each tailored to meet the needs of different demographics.
| STAR Tier | Income Limit (2025) | Age Requirement | Payment Range |
|---|---|---|---|
| Basic STAR | Up to $500,000 | None | $350 – $600 |
| Enhanced STAR | Up to $98,700 | 65 or older | $700 – $1,500 |
To be eligible, the property must be the homeowner’s primary residence. Enhanced STAR is especially targeted at seniors aged 65 or older, offering them higher tax relief due to fixed incomes and rising living expenses.
Major Cities Benefiting the Most
While the STAR program operates statewide, certain cities receive higher average benefits due to larger populations and higher property tax rates. Here are some of the top cities benefiting in 2025:
| City | Estimated Beneficiary Households | Average Benefit |
|---|---|---|
| New York City | 450,000+ | $550 |
| Buffalo | 90,000+ | $580 |
| Rochester | 80,000+ | $560 |
| Syracuse | 60,000+ | $530 |
These cities have experienced year-over-year increases in housing and utility costs of over 6%, making the STAR benefit especially crucial.
2025 Payment Timeline and Distribution
The distribution of STAR benefits began in June 2025 and will continue through early October. The method of receiving payment depends on the homeowner’s enrollment date and preference:
- Pre-2015 Enrollees often receive the tax exemption, which directly reduces their school property taxes.
- Post-2015 Enrollees are automatically enrolled in the STAR Credit method, unless they have explicitly opted for the exemption.
STAR Credit recipients will see direct deposits or mailed checks arriving over several weeks, depending on their local school tax billing cycle.
STAR Program’s Economic Footprint in 2025
This year, the STAR initiative is projected to deliver more than $1.4 billion in total relief. According to the New York State Department of Taxation and Finance:
- Basic STAR supports approximately 1.6 million households.
- Enhanced STAR assists over 400,000 senior homeowners.
This infusion of financial support comes at a time when many residents are grappling with high inflation, soaring utility bills, and increasing home maintenance costs. The program helps prevent delinquencies, stabilize housing, and reduce pressure on local government services.
How to Check Your Eligibility or Apply
Eligible homeowners can easily check their status or apply for benefits through the official STAR portal managed by the New York State Department of Taxation and Finance. The process is straightforward and requires:
- Property ownership details
- Income documentation
- Proof of residency
While enrollment remains open, new applications typically take several weeks to process. The state urges residents to apply early to ensure timely payment.
Why the STAR Program Matters Now More Than Ever
With inflation still impacting household budgets across New York, the STAR program remains a critical tool for economic relief. By easing the burden of school taxes, the initiative supports family financial stability and helps seniors maintain independent homeownership.
The STAR program is not just a temporary aid—it’s a long-term commitment to sustaining affordability in one of the most tax-heavy states in the country. As Governor Hochul reaffirmed, “This program is not just about numbers—it’s about supporting real people facing real challenges.”