TBC Information Network

Teal, Becker & Chiaramonte offering valuable insights, impressions and commentary on today's financial and business world.

NEW NYS Tax Credit for Homeowners. Do You Qualify?

New York State has a NEW property tax credit for homeowners who make less than $250,000.   

To Qualify:

  • You must be a NYS resident for the full year. In addition, the home must be your primary residence and you must have lived in the home at least 183 days during the year.
  • The credit applies to all property taxes you pay for schools, counties, villages and towns.
  • To be entitled to the credit, the amount of property taxes that you pay must exceed 6% of your income. This amount is referred to as your Excess Property Taxes.  Income is defined as your adjusted gross income with some additional modifications for losses etc.
  • If you qualify, the credit can be taken even if you do not itemize your deductions.

Amount of Credit:

  • If your income is less than $75,000, the credit will be 14% of the “Excess Property Taxes” paid.
  • If your income is more that $75,000 but less than $250,000, there is a two-pronged calculation to determine the credit. Due to the higher income, the credit will be a little less.
  • The allowable credit that can be taken on your return will be a minimum of $250 with a maximum allowable credit of $350. If the calculated amount of the credit is less than $250, the allowable credit will be zero.

How is the Credit Reported?

  • There is no application to complete.
  • The credit will be reported on your 2021 tax return.
  • The credit is in addition to the School Tax Relief or STAR.
  • The credit will remain in place again for tax years 2022 and 2023.

Subscribe