Seniors in New York Can Cut Taxable Home Value by 65% with New Law

O'Connor discusses how seniors in New York can cut taxable home value by 65% with new law.

NEW YORK, NY, UNITED STATES, December 23, 2025 /EINPresswire.com/ --


From NYC to Upstate, New York has some of the highest property taxes in the nation. Some of the most vulnerable homeowners in New York are struggling to stay in their homes, something that has driven legislation from all sides of the political spectrum.

With “affordability” becoming a buzzword across the state, many taxpayers are trying to decide what it means to them. No one struggles with this more than senior citizens. With fixed incomes, seniors face many financial pinches when it comes to keeping and maintaining their homes. To help mitigate this, New York recently passed legislation that will help bring even bigger savings for people over 65. O'Connor will briefly touch on the changes that are being implemented and how owners can use them to help protect their home now and in the future.

Previous Measures to Protect Seniors

Like most states, the largest property tax burden usually comes from school districts. With this in mind, New York State has tried to protect homeowners, especially seniors, from high taxation by school districts. Measures currently in place include the School Tax Relief Program (STAR), the senior citizen exemption, and exemptions for the disabled and veterans. These can all be combined into a potent weapon against rising taxes, but they have recently been supercharged by new legislation.

The School Tax Relief Program (STAR)

This longstanding program helps both seniors and regular taxpayers alike. Originally, the STAR program worked as a typical exemption, but this is no longer the case, at least for new homeowners. Taxpayers who have received STAR exemptions in the past still do, as long as they do not move. For all others, this has since transitioned to a STAR credit, which pays eligible taxpayers through a check or direct deposit to offset costs. There is debate among taxpayers about whether credits or exemptions are better, so it is up to personal preference. If owners have been grandfathered into an exemption, it may be best to stay with it, rather than switching to a credit. To qualify for STAR, owners must have an income under $250,000 per year. The STAR exemption reduces the home’s taxable value by $30,000, while the credit typically pays between $250 and $500.

Seniors exclusively have access to the Enhanced STAR program. Only available to homeowners over 65, this program offers potent exemptions or credits for homeowners over 65. The home value exemption rises to $86,000, easily surpassing the standard $30,000 cut. Credits can pay between $800 and $1,500 or more, depending on the school district and the value of the home. In order to qualify for the enhanced exemption or credit, income must be below $107,000 per year.

Senior Citizen Exemption

This separate exemption is used in tandem with the STAR exemptions or credits, allowing owners to combine benefits and get better savings. Before the new legislation, this was capped at 50% of the home’s value, which is still significant. The senior exemption is highly dependent on the local taxing bodies, as they are the ones that decide the size of the exemption. 50% was the maximum by which they could reduce taxable value, but the new legislation has enhanced this significantly. There can be some tricky income requirements to qualify for this exemption, typically under $50,000, but this can vary by county.

New Legislation Increases Exemption to 65%

The new legislation just passed will allow local taxing body to increase the senior exemption to 65% of the home’s taxable value. This is the first time that the cap has increased in decades. Like the original, it is up to the local taxing body’s discretion if owners can get the whole 65% or not, though it does allow them to do so. This would translate into a rough savings of $300 every year. This would come on top of the previous savings with the exemption, along with the STAR savings. When all combined together, owners might be able to eliminate school taxes entirely.

The main goal of this legislation is to keep seniors in their homes. With growing home values across the state, it is becoming harder for older taxpayers to keep up with market changes, gentrification, and inflation. With an enhanced exemption in hand, owners will be more prepared than ever to keep the financial wolves at bay. This also hopefully heralds future tax breaks for seniors, as the intrinsic problems in the system have now been recognized. There are still income restrictions, so owners will want to check with their local assessor to confirm eligibility, as it can vary by jurisdiction. Many come in multiple tiers, so they might see a smaller savings if they have a higher income.

Grievances can Enhance Exemptions and Credits

While credits and exemptions are a great start, owners can reduce their taxable burden even further with tax grievances. These appeals are useful for lowering the property’s assessed value to a fair market value, rather than the often-overstated assessed value. Grievances work well in concert with exemptions and credits, as they will lower the taxable value first, allowing even bigger savings to pile up on top. Grievances also ensure that your assessor has the correct information for your property, ensuring that they are not being charged for incorrect attributes or classification. Grievances can also compare the owner's home to that of their neighbors or recent sales, making sure that their property is not overvalued.

About O'Connor:
O’Connor is one of the largest property tax consulting firms, representing 185,000 clients in 49 states and Canada, handling about 295,000 protests in 2024, with residential property tax reduction services in New York, Texas, Illinois, and Georgia. O’Connor’s possesses the resources and market expertise in the areas of property tax, cost segregation, commercial and residential real estate appraisals. The firm was founded in 1974 and employs a team of 1,000 worldwide. O’Connor’s core focus is enriching the lives of property owners through cost effective tax reduction.

Property owners interested in assistance appealing their assessment can enroll in O’Connor’s Property Tax Protection Program ™. There is no upfront fee, or any fee unless we reduce your property taxes, and easy online enrollment only takes 2 to 3 minutes.

Patrick O'Connor, President
O'Connor
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