With the start of the upcoming school season, tax relief is coming for residents of this state. While the federal income tax season came to an end mid-April of this year, that does not mean other states have not been underway with continuing on with their own tax exemptions and rebates. Next month, if you are a resident of this one state and are part of this one group, you may be eligible to qualify for this tax benefit, right in time for back-to-school shopping.
Tax relief for millions through state programs
When thinking about taxes, generally, most of the attention is focused on income tax. While all income-earning citizens must, at the very least, file their federal income tax, the state in which you live will determine whether or not you also have to pay state income tax. Currently, all states require residents to pay income tax to their local administration except for the following: Alaska, Florida, Nevada, South Dakota, Texas, Washington, Wyoming, and Tennessee. Additionally, New Hampshire is currently in the process of phasing out their state income tax by 2027.
However, residents need to pay taxes in a variety of sectors, not just on their income. This can include sales tax, property taxes, and even taxes specifically reserved for certain products such as gas or cigarettes. This means that even if you live in a state that does not charge income tax, you most likely are paying higher taxes in other areas of life compared to other states to make up for the loss of that state not receiving tax on your income.
Tax relief from this state for this group
Depending on which state you live in, you can have a very different experience with the amount of tax that you have to pay to your state administration. This impacts the difference in your cost-of-living, meaning that understanding the taxes you are liable to pay as a resident of a particular state is crucial to understanding before committing to living there.
New York State is notorious for having both high taxes and a high cost of living. In addition to other tax liabilities, residents are subject to federal income tax, state income tax, city income tax, and some of the highest sales and property taxes in the state.
However, the New York State Department of Taxation and Revenue is bringing property tax relief to homeowners and renters in the state. Thanks to the School Tax Relief Program (STAR). Residents can expect to receive up to $1,400 in tax relief for property taxes. Payments have been ongoing since June and will continue into next month until October. The program operates by compensating a portion of the school taxes New York homeowners must pay instead of reducing property taxes directly. You are then refunded either in the form of a check or a tax credit.
Who qualifies to receive $1,400?
STAR recipients fall into two categories:
- Basic STAR for homeowners who meet an income limit of $500,000 or less
- Enhanced STAR for seniors aged 65 or older (or one of the spouses in the case of couples) with combined incomes of $107,300 or less for the fiscal year 2025
If you qualify for the Basic STAR program, you can expect to receive property tax rebates between the value of $350 $600. If you qualify for the Enhanced STAR program, however, rebates on the lower end start at $700, with homeowners who qualify for higher payments receiving upper limits of $1,400 to $1,500. To qualify for the higher rebates. In addition to these payments, New York state is also underway with sending our stimulus checks for newer programs the state administration has recently implemented.
Disclaimer: Our coverage of stimulus checks, tax reliefs, tax rebates, tax credits, and other payments is based on the official sources listed in the article. All payment amounts and dates, as well as eligibility requirements, are subject to change by the governing institutions. Always consult the official source we provide to stay up to date and obtain information for your decision-making.
