Rob Hartley

Founder, AppealDesk · March 27, 2026

New York Property Tax Law Changes 2026: What Homeowners Need to Know

Updated March 2026

STAR Program: Exemption vs. Credit

New York has been transitioning from the STAR exemption (reduced school tax on your bill) to the STAR credit (a check or account credit from the state). Key details for 2026:

Basic STAR

• Who qualifies: Owner-occupied primary residences with income up to $500,000
• New homeowners: Must register for the STAR credit (not the exemption) through the NY Tax Department
• Existing exemption holders: May continue receiving the exemption, but cannot switch back once they switch to the credit
• Benefit: Varies by school district, typically $200-$800/year

Enhanced STAR (Seniors 65+)

• Income limit: Approximately $98,700 (adjusted annually for inflation -- verify current threshold)
• Benefit: Significantly larger than Basic STAR, providing a substantial school tax reduction
• Annual renewal required: Income verification through IRS data or tax filing

Important: The STAR credit is designed to grow over time (it increases by 2% per year for qualifying recipients), while the STAR exemption amount is fixed. For long-term homeowners, the credit may eventually exceed the exemption value.

The 2% Tax Levy Cap

Made permanent in 2019, New York's property tax cap limits local government and school district tax levy increases:

• Cap: 2% or CPI, whichever is lower
• Override: Requires 60% supermajority vote (school boards) or local law (municipalities)
• Exceptions: Pension cost increases, court orders, and tort judgments

Critical distinction: The cap limits the total levy increase, not your individual assessment. If your property was reassessed higher while your neighbors' stayed flat, your share of the levy increases even if the total levy is capped at 2%.

NYC: A Separate System

New York City operates a fundamentally different property tax system from the rest of the state:

The Four Property Classes

• Class 1 (1-3 family homes): Assessed at approximately 6% of market value
• Class 2 (apartments, condos, co-ops): Assessed at 45% of market value
• Class 3 (utilities): Assessed at 45%
• Class 4 (commercial): Assessed at 45%

NYC Assessment Increase Caps

• Class 1: 6% per year, 20% over 5 years
• Class 2 (10 units or fewer): 8% per year, 30% over 5 years
• Class 2 (over 10 units) & Class 4: No cap on assessment increases

NYC Property Tax Reform: Stalled

The NYC Advisory Commission on Property Tax Reform issued recommendations in 2022 calling for significant reforms to reduce the well-documented inequities across property classes. As of 2026, no comprehensive reform legislation has been enacted by the state legislature. The current system, widely criticized for undertaxing some properties and overtaxing others, remains in place.

Senior Citizens Exemption (Outside NYC)

Outside NYC, municipalities can offer the Senior Citizens Exemption under RPTL 467:

• Base exemption: 50% reduction in assessed value
• Income limit: Approximately $37,400 (varies by locality, adjusted periodically)
• Sliding scale: Partial exemptions available for incomes above the base limit

Grievance Process for 2026

• Filing deadline: Grievance Day (typically third Tuesday in May, varies by municipality)
• File with: Board of Assessment Review
• NYC deadline: March 1 for Class 1 properties, March 15 for other classes
• Next step if denied: Small Claims Assessment Review (SCAR) for residential properties assessed under $450,000

2026 Action Checklist for New York Homeowners

1. Register for STAR if you haven't (new homeowners must register for the credit)
2. If 65+ with income under ~$98,700: Apply for Enhanced STAR
3. Review your assessment when the tentative roll is published (typically March-May)
4. File your grievance by Grievance Day if your assessed value exceeds market value
5. NYC homeowners: Check that your property class and assessment caps are correctly applied