If you own a home in New York City and you’re 65 or older, there’s a benefit that could significantly reduce your property tax bill every year — and most people don’t even know it exists.
It’s called SCHE (Senior Citizen Homeowners’ Exemption). This is an official NYC program that reduces the taxable assessed value of your home by up to 50%, depending on your income. For seniors living on a fixed income, that can mean thousands of dollars in savings every year. Here’s everything you need to know for 2026 — eligibility, income limits, and how to apply.
📌 Table of Contents
1. What Is SCHE?
2. Eligibility Requirements
3. Exemption Rates by Income
4. SCHE + Enhanced STAR: Double Savings
5. 2026 Enhanced STAR Updates
6. Application Deadline
7. How to Apply & Required Documents
8. SCHE vs. DHE
9. Quick Summary
Property taxes are one of the biggest annual expenses for NYC homeowners. But if you’re 65 or older and earn under $58,399, SCHE can cut your taxable home value by up to 50% — a benefit too valuable to miss.
What Is SCHE?
SCHE is a property tax exemption program for NYC homeowners aged 65 and older. It doesn’t give you a direct discount on your tax bill — instead, it reduces the assessed value of your home, which is the figure used to calculate how much tax you owe.
For example, if your home has an assessed value of $300,000 and you qualify for the maximum 50% exemption, the city will only tax you on $150,000. The other half is completely removed from the taxable amount. The lower your income, the higher your exemption rate.
Eligibility Requirements
You must meet all of the following conditions to apply for SCHE.
| Requirement | Details |
|---|---|
| Property type | 1–3 family home, condo, or cooperative apartment (co-op) |
| Age | All owners must be 65+. Exception: if co-owned by spouses or siblings, only one owner needs to be 65. |
| Primary residence | All owners must use the property as their primary residence |
| Ownership duration | Must have owned the property continuously for at least 12 months before applying |
| Income limit | Combined annual income of $58,399 or less |
Exemption Rates by Income
The less you earn, the more you save. If your combined income is $50,000 or less, you qualify for the maximum 50% exemption. As income approaches $58,399, the exemption rate gradually decreases to a minimum of 5%.
When calculating income, you can exclude the taxable portion of IRA withdrawals, and certain unreimbursed medical expenses may also be deductible. The NYC Department of Finance provides a free income calculation worksheet to help you figure out your eligible amount.
💡 Income limit may increase: As of 2026, there is active legislative discussion about raising the income threshold to around $100,000. No law has passed yet, but if you previously fell just over the current limit, this is worth watching.
SCHE + Enhanced STAR: Double Savings
Here’s a benefit many people don’t realize: if you receive SCHE, Enhanced STAR is automatically applied — no separate application needed.
Enhanced STAR is a state-level program that reduces the school tax portion of your property tax bill. When combined with SCHE, both exemptions apply at the same time, making your total savings even larger.
The income limit for Enhanced STAR is much higher than SCHE — in 2026, you qualify if your combined income is $110,750 or less. If you meet the SCHE threshold, you automatically qualify for Enhanced STAR as well.
2026 Enhanced STAR Updates
Starting in 2026, the Enhanced STAR application process has been significantly simplified. Previously, you had to apply manually when you turned 65. Now, New York State automatically verifies your eligibility and upgrades your benefit.
3 Key Changes
- Automatic upgrade: If you’re already receiving Basic STAR and turn 65, you’ll be automatically switched to Enhanced STAR — no action required.
- Relaxed co-ownership rule: Starting in 2026, only one owner needs to be 65 or older, regardless of the relationship between owners.
- Higher income limit: The Enhanced STAR income threshold has been raised to $110,750 for 2026 (based on 2024 income).
Note: If you receive a letter from NYS DTF (Form RP-5300) requesting income verification, you must respond within 45 days to keep your benefit.
Application Deadline: March 15 Each Year
You must apply or renew by March 15 each year for the exemption to take effect in the next tax year (which begins July 1). If March 15 falls on a weekend or holiday, the deadline moves to the next business day.
SCHE requires renewal every two years. The NYC Department of Finance will mail you a renewal notice, but missing the deadline can result in a sharp increase in your property tax — so mark your calendar.
How to Apply & Required Documents
How to Apply
- Online: Apply at nyc.gov/finance
- By mail: NYC Department of Finance, Homeowner Tax Benefits, P.O. Box 311, Maplewood, NJ 07040-0311
- In person: Visit your borough’s NYC Department of Finance Business Center
- By phone: Call 929-252-7242 (NYC Public Engagement Unit — one-on-one assistance available)
Required Documents
- Proof of age for all owners 65+ (passport, government-issued ID, etc.)
- Proof of ownership and primary residence
- Income documentation: federal tax return (Form 1040), Social Security benefit statement, pension/retirement income records, 1099 forms, etc.
SCHE vs. DHE: What If You Qualify for Both?
DHE (Disabled Homeowners’ Exemption) offers the same maximum 50% exemption and the same income limit of $58,399 — but it’s designed for homeowners with disabilities. If you qualify for both SCHE and DHE, you cannot receive both at the same time. In that case, SCHE is automatically applied.
Official Resources
✅ Quick Summary
Who: NYC homeowners aged 65+ (1–3 family homes, condos, co-ops)
Benefit: Up to 50% reduction in taxable assessed value → significant property tax savings
Income limit: Combined annual income of $58,399 or less
Max exemption: Income $50,000 or less → 50% exemption
Bonus: SCHE recipients automatically get Enhanced STAR (income up to $110,750)
2026 update: Enhanced STAR auto-upgrade + income threshold raised to $110,750
Deadline: March 15 each year (renewal required every 2 years)
Apply: nyc.gov/finance online or call 929-252-7242
* This post is for general informational purposes only. For official eligibility determination and application results, please consult the NYC Department of Finance directly.
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