Calculating STAR exemptions and credits
The dates below refer to municipalities that publish their final assessment rolls on July 1.
Step 1: Calculate initial STAR exemptions
Note: The formulas below are used to calculate Basic STAR exemptions and credits. Enhanced STAR exemptions are calculated the same way, except the Enhanced STAR base amount is higher than the Basic STAR base amount. For the 2024-2025 school year, the Enhanced STAR base amount is $84,000 and the Basic STAR base amount is $30,000.
The Tax Department calculates STAR exemptions for the following school year in April each year. This is the calculation we use:
$30,000 (Basic STAR base amount)
× Prior year equalization rate (or current year level of assessment for municipalities conducting reassessments)
× Sales price differential factor (if applicable)
= Amount A
Prior year Basic STAR exemption amount
× .89
= Amount B
The higher of Amount A and Amount B becomes the Basic STAR exemption amount.
Step 2: Review local data to determine if we need to recalculate STAR exemptions
If the change in level of assessment between the prior and current assessment roll is more than 5%, the law requires that we recalculate STAR exemptions in July or August after localities send their final assessment rolls to us.
We estimate a new STAR exemption amount and compare the new amount to the exemption calculated in April. If the difference between the original amount and the new estimate is 5% or more, then we certify a new STAR exemption amount.
Prior year equalization rate
× Change in level of assessment factor*
× $30,000 (Basic STAR base amount)
× Sales price differential factor
= Amount C
Prior year Basic STAR exemption amount
× Change in level of assessment factor*
× .89
= Amount D
If the higher of Amount C or Amount D varies by 5% or more from the STAR exemption calculated in April, then the higher of Amount C or Amount D becomes the STAR exemption amount.
Step 3: Calculate maximum STAR benefits
Annually for each school district segment, the amount of savings as a result of the STAR exemption cannot exceed the savings of the prior year. See Maximum STAR exemption savings to find the maximum for your school district and municipality.
The STAR credit can rise by as much as 2% from one year to another. To avoid confusion, we do not publish STAR credit maximums on our website. You can calculate your STAR credit maximum by multiplying the maximum STAR exemption savings for your school district and municipality by 1.02.
Note: Your actual STAR exemption savings or STAR credit may be less than the maximum STAR savings.
Step 4: Calculate actual STAR benefits
STAR exemption recipients
Your individual STAR savings will be the lesser of:
- the STAR exemption amount multiplied by the school tax rate (excluding any library levy portion), or
- the maximum STAR exemption savings.
You will receive your STAR exemption on your school tax bill.
STAR credit recipients
Your individual STAR savings will be the lesser of:
- the STAR exemption amount multiplied by the school tax rate (excluding any library levy portion), or
- the maximum STAR exemption savings multiplied by 1.02.
You will receive your STAR credit in the mail or by direct deposit from our department prior to the date that your school taxes are due.
* The change in level of assessment is the net percentage increase or decrease in the assessments of all taxable real property in an assessing unit from one final assessment roll to the next. The change in level of assessment does not include the following:
- increases or decreases in value attributable to physical or quantity changes in the property
- assessments of:
- special franchise property
- railroads subject to a ceiling assessment
- wholly exempt properties