On December 6, 2025, Governor Hochul signed S5175A/A3698A, raising the maximum local option for New York’s senior citizens real property tax exemption from 50% to 65% of assessed value. It’s the first increase to this cap in decades, and it’s effective for taxable years beginning on or after January 1, 2026.
But here’s the part that gets buried in local news coverage: this increase is not automatic. Every county, city, town, village, and school district has to individually vote to adopt the higher 65% cap. Income limits are also set locally. So before you get excited about a bigger exemption, you need to find out whether your own local government actually opted in.
Here’s what changed, who qualifies, how much you could realistically save, and how to apply before the deadline.
What Changed: 50% to 65%
Under the old version of Real Property Tax Law (RPTL) Section 467, localities could exempt up to 50% of a qualifying senior’s assessed home value from property taxes. The new law raises that ceiling to 65% — but it’s a ceiling, not a mandate.
- Old cap: 50% of assessed value, at the top income tier.
- New cap: up to 65% of assessed value, if the locality adopts it.
- Effective date: taxable years beginning on or after January 1, 2026.
- Estimated statewide average savings: roughly $300 per year, though actual savings depend heavily on your home’s assessed value and your local school and county tax rates.
That $300 figure is a statewide average, not a promise. A senior in a higher-value home in a high-tax school district could save considerably more; someone in a lower-value home in a low-tax area might save less.
This Is Optional for Your Locality — How to Check
Because RPTL 467 is a “local option” law, the 65% increase only takes effect where your county, city, town, village, or school district passes its own local law or resolution adopting it. Nothing changes automatically just because the state raised the ceiling.
To find out whether your area has adopted 65% (or is planning to):
- Call or check the website of your local assessor’s office — this is the fastest way to get a straight answer.
- Check your town, city, or village board meeting agendas and minutes for any resolution referencing RPTL 467 or the senior citizens exemption.
- If you live in New York City, check the NYC Department of Finance’s SCHE page directly, since the city administers the exemption for all five boroughs.
- Remember that your school district is a separate taxing jurisdiction from your city or town, and may set its own percentage independently.
Who Qualifies (SCHE / Senior Citizens Exemption Basics)
The core eligibility rules for the Senior Citizens Homeowners’ Exemption (SCHE), sometimes just called the “senior citizens exemption,” haven’t changed — only the maximum percentage has.
- Age: All owners of the property generally must be 65 or older. Exception: if the property is owned by a married couple or by siblings, only one owner needs to be 65+.
- Income limits: Your combined annual income (including all owners and any spouse living in the home) must fall below a locally-set threshold. In New York City for 2026, the base income limit for the full exemption is around $58,399. Outside NYC, municipalities set their own thresholds, which can range roughly from $3,000 to $50,000 for the base 50% tier, with sliding-scale options extending up toward the higher figure.
- Primary residence: The property must be your primary residence, and you generally must have owned it for at least 12 consecutive months before filing.
- Sliding scale: If your income is slightly above the base limit, you may still qualify for a reduced exemption — for example 5%, 10%, or 20% — instead of the full percentage.
How Much You Could Actually Save: A Worked Example
Here’s a simplified example of how the jump from a 50% to a 65% exemption changes a hypothetical tax bill. These numbers are illustrative only — your actual assessed value and tax rate will differ.
Assume: a home with an assessed value of $300,000 and a combined local property tax rate of roughly 2.5% of taxable assessed value.
- Without any senior exemption: taxable assessed value = $300,000 → estimated annual tax ≈ $7,500.
- With a 50% exemption: taxable assessed value = $150,000 → estimated annual tax ≈ $3,750 (savings of about $3,750/year).
- With a 65% exemption: taxable assessed value = $105,000 → estimated annual tax ≈ $2,625 (savings of about $4,875/year).
In this example, moving from 50% to 65% saves an extra $1,125 per year — but only if your locality has actually adopted the 65% cap, and only at the top income tier. Homes with lower assessed values or lower local tax rates will see smaller dollar savings, even though the percentage exemption is the same.
How to Apply (or Renew)
If you’re a first-time applicant, you’ll typically need to file Form RP-467 with your local assessor, or, if you’re in New York City, apply directly through the NYC Department of Finance’s SCHE application process.
- Deadline: In New York City, the filing deadline is generally March 15 for the exemption to take effect on the following July 1 tax bill. Deadlines can differ slightly outside NYC, so confirm the exact date with your local assessor.
- Renewal: SCHE is not permanent — most jurisdictions require renewal every two years, along with updated income documentation.
- NYC online filing window: New York City typically opens online SCHE filing in the fall (roughly late September) through the March 15 deadline.
Don’t assume that because you were approved once, you’re automatically covered forever. Missing a renewal deadline can mean losing the exemption for a full tax cycle.
SCHE/467 vs. Enhanced STAR — Don’t Confuse the Two
SCHE (RPTL 467) and Enhanced STAR are both aimed at senior homeowners, but they’re separate programs administered differently, with different application processes. Confusing the two is one of the most common mistakes homeowners make.
| Feature | SCHE / RPTL 467 | Enhanced STAR |
|---|---|---|
| What it reduces | Assessed value used to calculate all local property taxes | School tax portion only |
| Maximum benefit | Up to 65% of assessed value (if locally adopted) | Set exemption/credit amount that adjusts annually |
| Adopted by | Individual county, city, town, village, or school district (opt-in) | Statewide program, administered by NYS |
| Renewal | Must actively reapply every 2 years with income proof | Largely automatic renewal via income verification once enrolled |
| Where to apply | Local assessor’s office (or NYC Dept. of Finance) | NYS Department of Taxation and Finance |
The good news: seniors who qualify for both programs separately can often receive both at the same time. It’s worth checking your eligibility for each one individually rather than assuming they’re the same benefit.
FAQ
Does every county in New York now offer 65%?
No. The 65% cap is optional. Each locality must pass its own local law or resolution to adopt it. Many areas may still be at 50% or lower, or may adopt the increase later in 2026.
Can I get both SCHE and Enhanced STAR?
Generally yes — they are separate programs with separate eligibility rules, and many seniors qualify for both. Verify your specific eligibility for each with your local assessor and the NYS Department of Taxation and Finance.
What if I miss the March 15 deadline?
Some jurisdictions offer limited late-filing or hardship provisions, but these vary by locality and aren’t guaranteed. If you miss the deadline and no exception applies, you’ll generally need to wait until the next filing cycle.
Do renters get anything similar?
Renters don’t qualify for SCHE, since it’s a property tax exemption tied to homeownership. New York does offer separate renter-focused credit and “circuit breaker” style programs; check with the NYS Department of Taxation and Finance for current renter relief options.
Bottom Line
New York’s new 65% senior exemption cap is real, but it only helps you if your local government has actually adopted it. Your concrete next step: call or check your town, city, or county assessor’s website today to confirm whether the 65% option has been adopted where you live, and mark March 15 on your calendar as the filing or renewal deadline. While you’re at it, ask whether you also qualify for Enhanced STAR — many seniors are eligible for both.