The Senior Citizen Homeowners' Exemption (SCHE) provides a reduction of 5 to 50% on New York City's real property tax to seniors age 65 and older.
To be eligible for SCHE, you must be 65 or older, earn no more than $58,399 for the last calendar year, and the property must be your primary residence.
The exemption must be renewed every two years.
For exemption benefits to begin on July 1 of the year you apply, your application must be postmarked or submitted online on or before March 15. If the due date falls on a weekend or a national holiday, the deadline will be the next business day.
Applications that are received after the filing deadline will be processed for July of the following year.
2024/2025 Tax Year
The deadline to apply or renew for the 2024/2025 tax year was March 15, 2024.
2023/2024 Tax Year
The deadline to apply or renew for the 2023/2024 tax year was March 15, 2023.
To be eligible for SCHE, you must meet age, income, and residency requirements.
You aren’t eligible if:
Age
To qualify for an exemption that begins on July 1, you must be 65 or older by the following December 31. If you co-own your property with a spouse or sibling, only one of you needs to be 65 or older. For other co-ownerships such as a parent and children, all owners must be 65 or older.
Income
Whether or not they live on the property, the total combined adjustable gross income (amount filed on the Federal Income Tax Return) of all owners and their spouses must be $58,399 or less. If you received IRA distributions or distributions from an individual annuity that were included in your federal adjusted gross income, you may deduct those amounts.
If you need help understanding what should be included as income, you should refer to the application instructions or contact a licensed tax professional.
Primary Residence
The property must be the primary residence for all owners to be eligible for SCHE.
A primary residence is the dwelling unit in which the owner actually lives and maintains a continuous and physical presence. This means you must live there most of the year and it must be the address where you are registered to vote.
If an owner doesn’t live on the property, they must be:
Life Estates, Trusts, and LLCs
Life Estates
If you hold a life estate in the property, only the person with the life estate is the owner for SCHE eligibility purposes. The owner with the life estate must complete the application. Eligibility will be based on their income and if they meet all eligibility requirements. You must submit proof of income and a copy of the life estate with the application.
If the most recent deed says "Retained life estate," the person retaining the life estate can apply and receive the exemption if they meet the eligibility requirements.
Trusts
A trust is an arrangement that allows an individual or group to manage a property and financial assets. A beneficiary or trustee is the person designated as the recipient of funds or property.
If the property is owned by a trust, only the qualifying beneficiary (trustee) can apply for the exemption. The beneficiary should submit proof of their income and a copy of the trust with the application.
The name of the beneficiary/trustee will be found within the trust documents which should specifically state who has the right to live on the property.
Limited Liability Companies (LLCs)
A Limited Liability Company (LLC) is a business, regardless of the number of owners or their relationship to each other. Property owned by LLCs and other businesses are not eligible for personal exemptions or abatements.