In December 2025, Governor Kathy Hochul signed a law raising the senior property tax exemption cap from 50% to 65% of assessed value. For NYC homeowners with higher assessed values, the actual savings could be significantly larger than the state’s $300 estimate. The critical limitation is that each local government has to formally adopt the higher cap before its senior residents can benefit. Here is how the SCHE (Senior Citizen Homeowners’ Exemption) and DHE (Disabled Homeowners’ Exemption) programs work, what the income limits are, and what you need to do to apply.
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What This Means for Staten Island Homeowners
If you’re 65 or older and own a home in NYC, you may be leaving thousands of dollars on the table every year. Two property tax exemptions — SCHE (Senior Citizen Homeowners’ Exemption) and EAS (Enhanced STAR) — can stack and cut your annual property tax bill by up to 50% for qualifying seniors. Most Staten Island homeowners I talk to have either never applied, applied once and forgot to recertify, or assume they don’t qualify because of one outdated income limit they read years ago. The 2026 numbers tell a different story.
The Programs Worth Knowing About in 2026
SCHE applies to homeowners 65 and older with combined household income at or below roughly $58,400 (2026 threshold), and reduces assessed value by up to 50%. Enhanced STAR (EAS) applies to homeowners 65+ with combined income up to $107,300 and provides an additional school-tax reduction beyond standard STAR. The two programs are stackable — a senior who qualifies for both can see meaningful four-figure annual savings on a Staten Island home with an assessed value in the typical $750K range. The catch: SCHE requires annual recertification, and missed recertifications drop the benefit until the next renewal cycle.
Why This Matters for the Decision to Stay vs. Sell
Every senior client I talk to is wrestling with the same question: do I stay in the home I raised my family in, or sell into this market and downsize? Property tax savings change the math. A SCHE-qualifying household paying ~$8,400/year in property tax may be effectively paying $4,500–$5,000 after the exemption. That’s $3,500-$4,000 a year in real cash flow that vanishes the moment the home is sold or transferred. That’s not the only factor in the stay-vs-sell decision, but it’s a big one that rarely makes it into the spreadsheet. Run the downsizing calculator with your actual after-exemption tax number, not the gross figure on the bill.
How to Apply (and How to Help a Parent Apply)
Both exemptions are filed with the NYC Department of Finance — first-time SCHE applications are due by March 15 of the year you want the benefit applied. Enhanced STAR is administered through the NY State Department of Taxation and Finance. Bring last year’s federal tax return, proof of age, and proof of ownership. If you’re helping a parent apply for the first time, plan on an hour at a borough Department of Finance office or a careful submission online. Most adult children I work with discover their parents have qualified for years and never knew.
Wondering what your home is worth, what your post-tax monthly really looks like, or whether downsizing makes sense? I help senior homeowners on Staten Island navigate the stay-vs-sell decision every week. Reach out — Joseph Ranola, Bridge and Boro Real Estate Team. (917) 905-2541.
