How to Get the NYC Property Tax Rebate

The New York City property tax rebate was a financial relief program authorized by Local Law 82 of 2022. This initiative provided a one-time payment to lessen the financial strain on low- and middle-income homeowners. The program was designed to return a portion of property tax payments to those who met specific qualifications.

Eligibility Requirements for the Rebate

To qualify for the property tax rebate, ownership was restricted to specific residential property types. The program was open to those who owned a one, two, or three-family house. Owners of individual cooperative or condominium apartments were also included within the scope of eligible properties.

A condition for eligibility was an income limitation. The combined federal adjusted gross income for all owners of the property could not exceed $250,000. This income threshold was based on the 2020 tax year.

The property also had to serve as the owner’s primary residence. This requirement ensured that the tax relief benefited actual residents of the city rather than investors or owners of secondary homes.

A prerequisite for receiving this rebate was participation in another tax relief program. An owner had to have received either the School Tax Relief (STAR) credit or the STAR exemption for the corresponding fiscal year. Most homeowners who were already qualified for STAR were automatically enrolled for the rebate.

Determining Your Rebate Amount

The rebate was determined as the lesser of two figures: a fixed cap of $150 or the total amount of the property’s real estate tax liability for the fiscal year. This structure ensured that no homeowner received a rebate greater than their actual tax payment for that period. The law specifically capped the maximum possible payment at $150.

This calculation method meant that while many received the full $150, some may have received less. For instance, if a homeowner’s total property tax bill for Fiscal Year 2022 was $1,000, they would have received the full $150 rebate. If another homeowner’s total tax liability for the same year was only $120, their rebate would have been limited to $120.

The rebate was tied to a specific fiscal year’s tax liability. The calculation was based on the property taxes for Fiscal Year 2022. Homeowners could find their tax liability on their property tax bills from that period to understand which figure determined their final rebate amount.

The Rebate Delivery Process

For the majority of eligible homeowners, the rebate was delivered automatically without any required action. The Department of Finance identified those who received the STAR credit or exemption for Fiscal Year 2023 and for whom they could verify income eligibility. These individuals were automatically sent a check for the rebate amount.

If an eligible homeowner had outstanding property taxes, the process was slightly different. Instead of a physical check, the rebate was applied directly as a credit to their property tax account. This credit reduced the outstanding balance on their property bill.

Some homeowners who were eligible may not have received their payment automatically. This could have occurred if the DOF had incomplete income information for a STAR recipient or for eligible non-STAR recipients. In these cases, the homeowner was required to take action through an application process to claim their rebate.