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New York · RPTL §425(16), Tax Law §606(eee)New York STAR after buying a home: why new owners get the credit, not the exemption

New York's School Tax Relief (STAR) program used to be a property tax exemption granted by the local assessor. Beginning with the 2016–17 school year, an assessor may not approve a new STAR exemption application unless at least one applicant held title to the property on the taxable status date of the 2015–16 roll and the property had the exemption on that roll (Real Prop. Tax Law §425(16)(a)). When an application can't be approved for that reason, the assessor must tell the applicant that, instead, they may claim the personal income tax credit authorized by Tax Law §606(eee) if eligible, and may contact the Department of Taxation and Finance (§425(16)(a)). An owner who already had the exemption on the 2015–16 roll keeps it on later rolls as long as the requirements are met (§425(16)(b)). So a buyer who'll live in the home should look to the STAR credit – the seller's exemption doesn't carry over.

The rules

  1. 1. No new exemptions (§425(16)(a))

    Since 2016–17, unless an owner had it on the 2015–16 roll.

  2. 2. The credit (Tax Law §606(eee))

    New owners claim the personal income tax STAR credit.

  3. 3. Who to ask

    The Department of Taxation and Finance.

  4. 4. Existing exemptions (§425(16)(b))

    Continue for owners who had them on the 2015–16 roll.

What the TC can do

  • Remind an owner-occupant buyer at closing that the seller's STAR benefit doesn't carry over.
  • Point them to the Department of Taxation and Finance for the STAR credit.
  • Note that a tax escrow based on the seller's bill may change.

Questions about New York STAR after buying

Can a New York buyer apply for the STAR exemption?

Not as a new owner – since the 2016–17 school year, new STAR exemption applications are denied unless an owner had the exemption on the 2015–16 roll (Real Prop. Tax Law §425(16)(a)).

What do new New York homeowners get instead?

The personal income tax STAR credit under Tax Law §606(eee), if eligible; the Department of Taxation and Finance handles it (§425(16)(a)).

Related guides

Add a post-closing task in ClosingCode to remind the buyer about the STAR credit, with an owner and a due date.

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Source: New York Real Property Tax Law §425(16) (nysenate.gov, read October 26, 2026).

General information, not tax advice. Eligibility for the STAR credit is decided by the Department of Taxation and Finance. ClosingCode is software; it is not a tax advisor. This guide is not a substitute for the advice or services of an attorney.