Tax Savings for Senior Citizens
No one likes paying any type of tax...and there are more than a few types. Particularly in the current economy, saving money anywhere is a good thing, so seniors (those over 65) should know about some potential savings available to them in New York State.
First is the STAR credit or exemption. STAR stands for School Tax Assessment Relief and is operated by New York State. Many households, regardless of age, qualify for this benefit, which saves money on school taxes. The STAR credit provides a check or direct deposit which you can use to pay your school taxes. If you are w new homeowner, this is what you will register for. The STAR exemption, on the other hand, provides a reduction in your school tax bill - this is no longer available for new homeowners.
Eligibility for the basic STAR benefit is as follows:
Ownership – the property must be owned by the eligible applicants.
Residency – the property must be the primary residence of an eligible owner.
Age and income – no age limit and $500,000 or less for the STAR credit. The income limit applies to the combined incomes of only the owners and owners' spouses who reside at the property.
Income means federal adjusted gross income minus the taxable amount of total distributions from IRAs. This is generally line 11A on your Federal 1040 (individual tax return) minus line 4B.
Income eligibility for the 2026 STAR benefit is based on federal or state income tax return information from the 2024 tax year. Thus, 2027 benefits are based on 2025 income taxes.
Eligibility for the Enhanced STAR benefit is as follows:
Only one resident owner of the property—regardless of the relationship of the owners—must be at least 65 as of December 31 of the benefit year.
Same as for the basic, the property must be owned by the eligible applicants and it must be their primary residence.
Income limit for 2026 is $110,750 or less. For 2027, it is $113,550 or less.
STAR savings vary by locality and school district. To look up your savings, please visit: STAR credit and exemption savings amounts
For more information on eligibility, including details about primary residence, surviving spouse eligibility, etc., please visit: STAR eligibility
For frequently asked questions about the STAR Credit, visit: School Tax Relief (STAR) frequently asked questions (FAQs)
Lastly, to register for the STAR credit (if you are not already registered), you will need to have a NYS Online Services account. For information about how to register, please visit: Register for STAR or update your STAR registration
STAR is not the only local tax benefit available to seniors! Per NYS: "Local governments and school districts in New York State can opt to grant a reduction on the amount of property taxes paid by qualifying senior citizens. This is accomplished by reducing the taxable assessment of the senior's home by as much as 50%." This is good news for many folks over 65. Once again, there are income limitations, and to get the full 50% reduction, the state allows for incomes to be set by the locality anywhere between $3,000 and $50,000. If you fall outside of these amounts, you may be eligible for a reduced tax benefit on a sliding scale.
While we would love to provide exact numbers, each locality sets their own limits and deadlines. Seniors who think they may qualify should check with their local assessor and ask about the senior citizens exemption on property taxes.
We highly recommend checking out the senior citizens exemption information page, provided by NYS. It includes links to the application for first time applicants, the renewal application, and further eligibility details: Senior citizens exemption
The legislation passed by the federal government in 2025 provided for a tax deduction for folks over 65. If you are 65 or older, you may qualify for up to $6,000 in deductions depending on your income.
Your modified adjusted gross income must be less than $75,000 if you are single or $150,000 if you are married filing jointly to qualify for the full deduction. To qualify for a partial deduction, your income must be between $75,000 and $175,000 if filing single, or $150,000 to $250,000 if married filing jointly. If married filing jointly, each spouse who is at least 65 is eligible for the deduction, meaning couples who both meet the criteria can see an extra $12,000 in deductions. This benefit is NOT available to married couples who file separately.
To answer some questions we have frequently heard:
This is a deduction, meaning it reduces your taxable income. If you already have less than your deduction amount as taxable income, it will NOT provide an additional refund or credit.
This deduction is in addition to your standard or itemized deduction.
Social Security IS still taxable. We heard from many folks this year who thought Social Security was no longer taxable - this deduction is meant to offset some of the taxable nature of Social Security in lieu of the government keeping Social Security taxable as it has been.
Social Security is not 100% taxable. Up to 80% of Social Security can be taxable, based on income. For some, Social Security has traditionally been 0% taxable due to their income.
The State of New York does NOT tax Social Security. This is a federal deduction ONLY.
Lastly, long term care insurance. Regardless of age, if you pay long term care insurance premiums out of pocket, NYS provides a tax credit of up to 20% of the premiums paid during the year, not exceeding $1,500. If you pay for long term care insurance, please let us know your annual premium amount so we can be sure to include it when filing your individual income taxes!
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