NYC Property Tax Exemptions: STAR, SCHE, DHE, Veterans & Co-op Abatement
5 min read · Updated 2026-08-13
NYC property tax exemptions explained: STAR, SCHE, DHE, veterans, clergy, and the co-op/condo abatement, plus the March 15 deadline and renewal rules.
Homeowner Exemptions
What is the STAR exemption in NYC?
The School Tax Relief (STAR) program reduces the school-tax portion of your property tax bill on your primary residence. Basic STAR is available to most owner-occupants below an income limit, and Enhanced STAR provides a larger benefit to seniors who meet stricter age and income requirements. New York now delivers STAR to most new applicants as a credit — a check or direct deposit from the state — rather than as an exemption that lowers the bill directly, though many longtime recipients still get the exemption version. Because the credit-versus-exemption rules and income limits are set by the state and adjust over time, confirm the current figures and how to apply on the DOF exemptions page.
What is the Senior Citizen Homeowners' Exemption (SCHE)?
The Senior Citizen Homeowners' Exemption (SCHE) reduces the assessed value used to calculate property taxes for qualifying seniors. To qualify, you generally must be 65 or older and have a combined income at or below $58,399, and the property must be your primary residence. Depending on income, SCHE can reduce the taxable assessed value by 5% to 50%, so lower-income seniors receive the largest break. SCHE is one of the most valuable exemptions for older NYC homeowners and can meaningfully cut a bill. It must be renewed every two years, so mark your calendar to reapply and keep your income documentation current.
What is the Disabled Homeowners' Exemption (DHE)?
The Disabled Homeowners' Exemption (DHE) reduces the assessed value used to calculate property taxes for owners with qualifying disabilities who meet income limits, similar in structure to the Senior Citizen Homeowners' Exemption (SCHE). The property must be the applicant's primary residence, and the amount of the reduction scales with income, so lower-income owners receive a larger break. You generally cannot receive both SCHE and DHE on the same property at the same time. Like SCHE, DHE must be renewed every two years. Check the DOF property tax exemptions page for the current income thresholds, required proof of disability, and the application form.
What property tax exemptions are available to veterans in NYC?
NYC offers property tax exemptions for veterans, primarily the Alternative Veterans' Exemption and the Eligible Funds Exemption. The Alternative Veterans' Exemption reduces assessed value based on service, with additional benefits for those who served in a combat zone or have a service-connected disability. The Eligible Funds Exemption applies when eligible funds — such as certain military bonuses or pension money — were used to buy the property. The property must generally be the veteran's primary residence. Because eligibility depends on discharge status, service dates, and how the property was purchased, review the specific requirements and required documents on the DOF exemptions page before applying.
Abatements & Other Benefits
What is the co-op and condo tax abatement?
The Cooperative and Condominium Property Tax Abatement reduces property taxes for owners who use their co-op or condo unit as their primary residence. The benefit ranges from about 17.5% to 28.1% depending on the building's average assessed value per unit, with lower-valued units receiving the larger percentage. For co-ops, the abatement is applied at the building level and passed through by the managing agent, while condo owners receive it on their own tax accounts. The property must be the owner's primary residence, and the managing agent typically files the required information with the Department of Finance. Investors and non-primary-residence owners generally do not qualify.
What is ICAP for commercial property owners?
The Industrial and Commercial Abatement Program (ICAP) provides property tax abatements to owners who build, modernize, expand, or otherwise physically improve industrial and commercial buildings in eligible areas of the city. The abatement offsets the increase in assessed value that results from qualifying construction work, phasing in over a set period. ICAP is aimed at encouraging investment in commercial and industrial property rather than at homeowners. Eligibility depends on the type of work, the property's location, and timely filing before construction begins, so owners planning a major commercial improvement should review the ICAP requirements on the DOF site early in the project.
Are there NYC property tax exemptions for clergy or crime victims?
Yes. NYC offers a Clergy Exemption that provides a modest reduction in assessed value for property owned by qualifying members of the clergy who meet the program's criteria. The City also administers a Crime Victim/Good Samaritan Exemption, which can help owners who made qualifying repairs after a crime affected their property under specific conditions. These are narrower programs than STAR or SCHE, with particular eligibility rules and documentation requirements. If you think you may qualify, review the details on the DOF property tax exemptions page and apply by the deadline, because like other exemptions they must be filed on time to take effect for the tax year.
Applying & Deadlines
When is the deadline to apply for NYC property tax exemptions?
For most property tax exemptions, the application deadline is March 15 for the tax year that begins the following July 1. If you file after March 15, your benefit generally will not take effect until the next tax year, so a missed deadline can cost you a full year of savings. Some benefits, such as STAR delivered as a state credit, follow separate state registration timelines. Because a single late filing delays the benefit by a year, apply well before March 15 and gather your income, age, disability, or service documentation in advance. Confirm the current deadline and forms on the DOF exemptions page.
Do I need to renew my NYC property tax exemption?
Some exemptions require periodic renewal. The Senior Citizen Homeowners' Exemption (SCHE) and the Disabled Homeowners' Exemption (DHE) must be renewed every two years, because they depend on income and status that can change. If you do not renew on time, the benefit can lapse and your tax bill will rise. Other exemptions, such as the basic co-op/condo abatement, are generally maintained through the managing agent's filings as long as the unit remains your primary residence. The Department of Finance mails renewal notices, but do not rely solely on the mail — track your renewal dates yourself and submit updated documentation before the deadline.
How do I apply for a property tax exemption in NYC?
You apply through the Department of Finance (DOF), which publishes the forms and instructions for each exemption on its property tax exemptions page. Most homeowner exemptions require proof of primary residence and, depending on the program, documentation of age, income, disability, or military service. Co-op and condo owners generally receive the abatement through their managing agent's filing rather than applying individually. Submit your application before the March 15 deadline for the benefit to apply to the upcoming tax year. Keep copies of everything you file, and check your later tax bills to confirm the exemption was applied correctly.