STAR and STAR Credit Direct Deposit: Frequently asked questions (FAQs)

A: The School Tax Relief (STAR) program offers property tax relief to eligible New York State homeowners. If you’re eligible and enrolled in the STAR program, you’ll receive your benefit each year in one of two ways:

• STAR credit check. If you are registered for the STAR credit, the Tax Department will send you a STAR check in the mail each year. You can use the check to pay your school taxes. You can receive the STAR credit if you own your home and it's your primary residence and the combined income of the owners and the owners’ spouses is $500,000 or less.
• STAR exemption: a reduction on your school tax bill. If you’ve been receiving the STAR exemption since 2015, you can continue to receive it for the same primary residence. As long as you remain eligible, you’ll see a reduction on your school tax bill for the amount of your STAR exemption. Note: The STAR exemption is no longer available to anyone who purchased their home after 2015.

Whether you receive the STAR exemption or the credit, there is a Basic STAR benefit and an Enhanced STAR benefit. For more information, see Types of STAR benefits.

A: Homeowners with incomes under $500,000 are generally eligible for the STAR credit on their primary residence. For details, see STAR eligibility.

A: Because the STAR exemption is a reduction on your school tax bill, you can determine if you are receiving it by reviewing your school tax bill or contacting your assessor. See Property tax bill examples. You can also check the assessment roll for the municipality in which you reside to determine whether a STAR exemption has been placed on the assessment roll for your property. Assessment rolls are generally posted on your municipality or county’s website. Learn about the assessment roll.

Because the STAR credit is paid to recipients annually by the Tax Department, you can look up property tax credits previously paid to you on our Property Tax Credit Lookup tool.

A: You may receive a larger benefit if you switch to the STAR credit. To compare what you would have received had you switched in a prior year, see STAR credit and exemption savings amounts. See STAR eligibility to review additional differences.  

A: To register see Register for the STAR credit. For a complete list of required information, see Before you start.

A: We recommend you register as soon as possible after you move into your new home. However, we’ll accept your registration for up to three years from the income tax filing deadline for the year covered by the credit. For example, to claim the STAR credit for 2023, you must register by April 15, 2027.

A: No. Once you’ve registered, we’ll automatically review your eligibility for the credit every year for as long as you continue to own and occupy your home.

A: No. The department makes one payment to all resident owners of a property. If multiple owners wish to divide the STAR credit benefit, they must make arrangements among themselves.

A: You may be. Manufactured homeowners are eligible for the STAR credit if they meet all the STAR eligibility criteria.

A: You should expect to receive the credit around the time you receive your school tax bill. Use our STAR Credit Delivery Schedule lookup for the most recent delivery information for your area.

A: See How to report your property tax credits.

A: State law allows for interest to be paid on STAR credits only if you registered on or before July 1 of the year of the credit. However, even if you registered on or before July 1, your eligibility for interest depends on when your school district’s tax roll was filed with the Tax Department. Specifically, if the school tax roll was filed with us:

• by July 1, you’re eligible for interest if the check isn’t issued by July 31;
• by September 1, you’re eligible for interest if the check isn’t issued by September 30; or
• after September 1, you’re eligible for interest if the check isn’t issued within 30 days from the filing of the roll.

Note: Checks for cooperatives and manufactured homes may be on a different schedule.

If you are entitled to interest, we’ll automatically add it when we issue your check.

A: You will become eligible for the STAR credit in the first year that you own the home and it is your primary residence as of the date that school taxes are due.

Example 1: If the school taxes in your community are due by September 30, and you purchase the home on September 15, you will become eligible for STAR that year, as long as you Register for the STAR credit and meet the eligibility criteria.

Exception: If the prior owner had been receiving a STAR exemption on the home, and the sale occurred after the local taxable status date (generally March 1), his or her STAR exemption will be carried over to your first school tax bill, and you will begin receiving the STAR credit the following year.

Example 2: If the school taxes in your community are due by September 30, and you purchase the home on October 15 (after school taxes are due), you will become eligible for the STAR credit the following year, as long as you register and meet the eligibility criteria.

A: In 2016, the law changed regarding the STAR exemption. Instead of applying to your assessor for the exemption, you’ll now register with New York State for the STAR credit. If you’re eligible, you’ll receive a STAR credit in the form of a check.

The credit may be more beneficial to eligible homeowners because it may provide a greater benefit than the exemption. The value of the STAR credit savings may increase by as much as 2% each year, while the value of the STAR exemption savings will not. The STAR exemption savings can never be greater than the STAR credit savings. For more information, see STAR credit and exemption savings amounts.

A: Yes. The reason you received the STAR exemption on your first school tax bill is because the previous owner of your home was granted the STAR exemption. Their exemption remained in place in the first year you owned the home, but you are not entitled to keep their STAR exemption beyond that. You must register for the STAR credit to receive a STAR benefit in the future.

A: By law, to receive the STAR exemption now, you must have received it in 2015. Because you weren't receiving the STAR exemption on the property in 2015, you're not eligible to receive the exemption. However, you may still register with the Tax Department for the credit. See When should I register?.

A: If you want to receive the STAR credit instead of the exemption, it may be to your advantage. However, once you switch to the STAR credit, you cannot switch back to the exemption.

To receive the STAR credit, follow the instructions to register for the STAR credit and select Make the Switch from the Registration Options. Once you register for the credit, you will no longer receive the STAR exemption. If you do not select Make the Switch, you’ll continue to receive the STAR exemption.

A: If you reviewed the eligibility requirements and believe you’re eligible, yes. To upgrade your Basic STAR exemption to the Enhanced STAR exemption, you must submit the following to your assessor:

•  RP-425-IVP, Supplement to Form RP-425-E (include the Social Security numbers of all owners of the property and any of their spouses who reside at the property), and
•  RP-425-E, Application for Enhanced STAR Exemption.

A: Yes. If you change residences, you must re-register for the STAR credit for your new property in order to receive the benefit on your new home.

A: Yes. See Register for the STAR credit, select Get Started to open the application, and choose Update your registration from the options.

A: No. If you received the STAR exemption in 2015 and you continue to own the home, you’re eligible to continue receiving the exemption.

A: No. As long as you continue to live in the home and you’re either the trust beneficiary or life tenant, you’re eligible to continue receiving the exemption. For more information on trusts, life estates, and STAR, see STAR eligibility.

A: If you’re a STAR credit recipient, starting in 2023, you may have your STAR credit deposited directly into your bank account, rather than receive a check. STAR Credit Direct Deposit is the fastest and easiest way to receive your STAR credit. You may have received a letter (Form RP-5310-DDO) informing you of this option.

A: Yes. As long as you’re registered and eligible for the STAR credit, you may enroll in STAR Credit Direct Deposit. If you enroll fewer than 15 days before we issue your STAR credit, you’ll receive a check this year and your direct deposits will begin next year.

To find out when we’ll issue STAR credits in your area, use our STAR Credit Delivery Schedule lookup.

A: When you choose direct deposit, you’ll

• receive your STAR credit sooner,
• eliminate the hassle of cashing a check, and
• have peace of mind (no lost or undeliverable checks).

A: No. The STAR Credit Direct Deposit program is a voluntary program.

A: You must enroll online through the Tax Department’s Online Services using an Individual Online Services account.

If you do not have an Individual Online Services account, you must create one. You cannot use a Business, Tax Professional, or Fiduciary account to enroll in STAR Credit Direct Deposit.

Once you have an Individual account:

1. Log in and select the ≡ Services menu in the upper-left corner of your Account Summary
2. Choose Real property tax, then STAR credit direct deposit from the expanded menu.
3. After entering your bank account information, double-check it to confirm it’s correct.

A: To ensure you receive your STAR credit by direct deposit this year, enroll as soon as possible. If you enroll fewer than 15 days before we issue your STAR credit, you’ll receive a check this year and your direct deposits will begin next year.

To find out when we’ll issue STAR credits in your area, use our STAR Credit Delivery Schedule lookup.

A: No. You must register for the STAR credit separately. Once you’re registered for the STAR credit, you’ll automatically receive your credit by check unless you enroll in STAR Credit Direct Deposit.

A: No. To receive your STAR credit by direct deposit, you must enroll in the STAR Credit Direct Deposit program through your Individual Online Services account.

A: No. You’ll remain enrolled in the program unless you discontinue your enrollment.

A: No. You may receive either the STAR credit or the STAR exemption, not both. The STAR exemption is a reduction of tax on your school tax bill, not an amount we can issue to you by check or direct deposit.

Interested in learning more about the STAR credit? See the STAR resource center to learn more.

A: No. To receive the STAR credit, follow the instructions to register for the STAR credit and select Make the Switch from the Registration Options. Once you register for the credit, you will no longer receive the STAR exemption. If you do not select Make the Switch, you’ll continue to receive the STAR exemption.

Once you’re registered for the STAR credit, you’ll automatically receive your credit by check unless you enroll in STAR Credit Direct Deposit.

A: No. You will not need to contact your bank to enroll in STAR Credit Direct Deposit.

A: If you do not have a bank account, you cannot enroll in STAR Credit Direct Deposit.

However, as long as you’re registered and eligible, you’ll continue to receive a STAR credit check.

A: You can find your routing and account numbers on your checks, and often in your online bank account (if you have one). You can also contact your bank.

Here’s a sample check with the routing and account numbers highlighted:

A: No. STAR credits may be deposited only into a personal checking or savings account, or mailed to you as a check.

A: Yes. We’ll deposit your STAR credit into the account you specify in your STAR Credit Direct Deposit enrollment.

A: No. The STAR credit may be deposited into only one bank account.

A: While the text that appears on your bank statement may vary, it should include the words New York State, the abbreviation NYS, or something similar. If you don’t know whether your STAR credit has been deposited, use our Property Tax Credit Lookup to see whether we’ve issued it.

A: We’ll send an enrollment confirmation email to the email address used for your Individual Online Services account and a confirmation letter to the mailing address we have on file for you.

A: As long as you’re registered and eligible for the STAR credit, you may expect to receive your STAR credit before the deadline for your school taxes. If we cannot deposit using the bank account you provide, or if you enroll in STAR Credit Direct Deposit fewer than 15 days before we issue your STAR credit, you’ll receive a check.

To find out when we’ll issue STAR credits in your area, use our STAR Credit Delivery Schedule lookup.

A: You must pay your school district taxes by the deadline, whether or not you have received your STAR credit. If you do not, you will be subject to interest, penalties, or both.

If you were expecting to receive a STAR credit by direct deposit before your school taxes were due, there may be a simple explanation as to why you did not. We recommend you:

1. Confirm you did not receive the STAR exemption on your property tax bill.
2. Verify a STAR credit has been issued using our Property Tax Credit Lookup.
3. Confirm the bank account information on your STAR Credit Direct Deposit enrollment is correct.

Still have questions? Contact the Tax Department’s STAR telephone line Monday through Friday from 8:30 a.m. to 4:30 p.m.

A: If your name or mailing address changes, update your STAR credit registration. For instructions, see Register for the STAR credit. After you begin the registration process, select Update Registration.

To change your bank account information for STAR Credit Direct Deposit:

1. Log in to your Individual Online Services account.
2. Select the ≡ Services menu in the upper-left corner of your Account Summary
3. Select Real property tax, then choose STAR credit direct deposit from the expanded menu.
4. Follow the prompts on the screen to update your enrollment.

A: If we cannot deposit your STAR credit using the bank account information you provide, you’ll receive a check for the STAR credit. You may update your STAR Credit Direct Deposit enrollment to change your banking information.

A: To discontinue your enrollment in STAR Credit Direct Deposit:

1. Log in to your Individual Online Services account.
2. Select ≡ Services menu in the upper-left corner of your Account Summary
3. Select Real property tax, then choose STAR credit direct deposit from the expanded menu.
4. Follow the prompts on the screen to discontinue your enrollment.

Note: If you cancel your direct deposit, we’ll send a STAR credit check to the mailing address we have on file for you, as long as you are registered and eligible for the credit. You may re-enroll in STAR Credit Direct Deposit at any time.

A: No.

If you purchase a new home, you must re-register for the STAR credit to receive the benefit on your new home. For more information, see Register for the STAR credit.

After you register, as long as you’re eligible, you’ll continue to receive your STAR credit by direct deposit. However, you should review the details of your enrollment and confirm your bank information is still accurate. Bear in mind that, if you no longer own your primary residence, you are not eligible for the STAR credit.

A: No. You will not have to re-enroll in STAR Credit Direct Deposit if you become eligible again in future years.