What is the homestead exemption in New York and how do I claim it?
New York separates creditor protection from property-tax relief and uses geographic tiers.
1. Two Concepts
New York provides (a) the STAR property-tax exemption administered by the state Tax Department and (b) the creditor/bankruptcy homestead under CPLR § 5206 protecting equity from judgment liens.
2. Creditor / Bankruptcy Homestead
CPLR § 5206 (as revised 2023) sets the homestead at $179,975 in Bronx, Kings, New York, Queens, Richmond, Nassau, Suffolk, Rockland, Westchester, and Putnam counties; $149,975 in Dutchess, Albany, Columbia, Orange, Saratoga, and Ulster; and $89,975 elsewhere. Amounts are indexed every three years.
3. Automatic vs Declaration
The exemption auto-attaches to the principal residence — no recording is required.
4. Federal Bankruptcy Cap
BAPCPA § 522(p) caps the homestead at $189,050 (April 2022) for property acquired within 1,215 days of filing. New York permits debtors to choose state or federal exemptions (Debtor & Creditor Law § 285).
5. Property-Tax Homestead
The Basic STAR exemption (RPTL § 425) provides a school-tax reduction on the first $30,000 of assessed value for homeowners earning under $500,000. Enhanced STAR for seniors over 65 with income under $98,700 (2024) provides a larger benefit. Many homeowners now receive STAR as a check rather than an exemption.
6. Filing Property-Tax Exemption
Register with the NYS Tax Department online for the STAR credit. Pre-2015 enrollees can keep the original exemption with the local assessor.
7. Spousal Protections
Tenancy by the entirety automatically protects a marital home from individual-creditor judgments; both spouses must sign to convey.
8. Loss Triggers
Abandonment, conversion to commercial use, or surrender of residency terminates the exemption; proceeds are protected for one year under § 5206(e).
9. Foreclosure & Forced Sale Exceptions
Purchase-money mortgages, real-estate taxes, mechanic's liens, and federal tax liens override the homestead. Equitable distribution in matrimonial actions is also unaffected.
This is legal information, not legal advice.
- You are choosing between state and federal exemptions in bankruptcy
- A judgment creditor is attempting to force sale of your tenancy-by-entirety home
- Your STAR exemption was revoked after a transfer to a trust
- N.Y. CPLR § 5206
- N.Y. Debtor & Creditor Law § 285
- N.Y. RPTL § 425
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.