The STAR credit for new homeowners on Long Island is one of the easiest ways to save on school taxes, and one of the easiest to miss. Many buyers expect it to show up on their tax bill. For most new owners, it doesn't. You have to sign up.
This guide explains what STAR is, who qualifies, and how to register after you close.
New homeowners on Long Island usually get STAR as a credit check from New York State, not as a discount on the tax bill. It doesn't start on its own. After you close on the home you live in, register for the STAR credit with the NY Department of Taxation and Finance online, through the Homeowner Benefit Portal. You only register once.
What is the STAR program in New York?
STAR stands for School Tax Relief. It's a New York State program that lowers the school tax cost for homeowners who live in their home as their primary residence, according to the NY Department of Taxation and Finance.
On Long Island, school taxes are often the biggest part of the property tax bill, so STAR matters here.
What's the difference between the STAR credit and the STAR exemption?
There are two kinds of STAR:
- STAR credit. New York State sends you a check each year. This is what most new homeowners get.
- STAR exemption. A reduction shown right on your school tax bill. It's closed to new applicants, so owners who already had it could keep it.
Here's what that actually means for you: if you just bought your home, plan on the STAR credit check, and plan on registering for it yourself.
Who qualifies for the STAR credit?
You may qualify for the Basic STAR credit if:
- You own the home, and it's your primary residence.
- Your household income is within the state's limit. Check the current limit on the NY Department of Taxation and Finance website, because it can change.
Homeowners 65 and older with qualifying income may get the larger Enhanced STAR benefit. The state sets those income limits each year.
How do I register for the STAR credit?
Register with New York State as soon as the home becomes your primary residence, according to the NY Department of Taxation and Finance. Have these ready first:
- Names and Social Security numbers for all owners and their spouses
- The name of your school district
- The date you bought the home, and the sellers' names if you have them
- Your most recent school tax bill, if you got one
- Last year's income tax returns for all owners
Then log in to (or create) your Individual Online Services account on the Tax Department website and open the Homeowner Benefit Portal under Real property tax. From there you can register, check your status, and sign up for STAR credit direct deposit.
You only register once. After that, the state sends the credit each year as long as you're eligible.
When should I sign up for STAR?
Sign up as soon as you own and live in the home. Put it on your post-closing checklist, next to changing your address and setting up utilities.
If you're not sure whether you're registered, the state's STAR page explains how to check your status.
Does STAR change my monthly mortgage payment?
Usually not. With the STAR credit, you pay your full school tax bill (often through your mortgage escrow), and the state sends you a check separately. That's why it helps to budget for the full tax bill. See the Long Island property tax guide for how taxes work here.
Other money-saving steps after you buy a Long Island home
- Check your assessment. Make sure the town's record of your home is correct.
- Review your escrow. Your lender may adjust your monthly payment after the first year of taxes.
- Keep your closing papers. You'll need them for taxes and any future grievance.
- Plan for closing costs next time. Read closing costs on Long Island for buyers.
Post-closing checklist for new Long Island homeowners
- Register for the STAR credit.
- Update your address with the post office, your bank, and your job.
- Set up electric, gas or oil, water, internet, and trash.
- Save your deed, title policy, and Closing Disclosure.
- Change the locks.
- Mark your tax due dates on your calendar.
How I help buyers after closing
I'm Kellen Vinco, a Long Island REALTOR® with Douglas Elliman in Smithtown. Before selling homes, I spent 25+ years in commercial property management, so I read tax bills line by line. I help buyers across Kings Park, Commack, Huntington, Fort Salonga, Dix Hills, Smithtown, Hauppauge, and Hicksville, in English and Spanish, and I send every buyer home with a post-closing checklist.
Thinking about buying? Start with the first-time buyer programs guide, then book a free consultation.
Sources and helpful links
Kellen helps Long Island buyers and sellers in English and Spanish, with 25+ years of property management experience behind every home she walks through.
This article is for general information only and is not legal, tax, mortgage, or financial advice. Market conditions change, so confirm details for a specific property. Equal Housing Opportunity.
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This guide is informational and not mortgage, tax, legal, or financial advice. For property-specific questions, speak with the appropriate licensed professional.
Common questions
Do new homeowners on Long Island get STAR automatically?
No. Most new homeowners have to register for the STAR credit with New York State after they close.
What's the difference between the STAR credit and the STAR exemption?
The STAR credit is a check from the state. The STAR exemption is a reduction on the school tax bill, and it's closed to new applicants.
Can I get STAR on a second home or rental?
No. STAR is only for the home you live in as your primary residence.
Do I have to register for STAR every year?
No. You register once, and the state checks your eligibility each year after that.
Is there an income limit for STAR?
Yes. The state sets income limits for Basic and Enhanced STAR. Check the current limits on the NY Department of Taxation and Finance website.
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