NYC Senior and Disabled Homeowner Property Tax Exemptions 2026–27: How SCHE and DHE Can Cut Your Assessed Value by Up to 50%
For many older New Yorkers, the home they bought decades ago is their biggest asset and, on a fixed income, their biggest bill. New York City has two property tax breaks aimed squarely at that problem: the Senior Citizen Homeowners' Exemption (SCHE) for owners 65 and older, and the Disabled Homeowners' Exemption (DHE) for households with an owner who has a disability. Both can reduce a home's assessed value by as much as half.
Both have the same income limit and the same March 15 deadline, but they differ on age, documentation and how often you renew. Here's what you need to know for the 2026–27 cycle.
Last checked October 2026. Sources: NYC Department of Finance (DOF) pages on SCHE and DHE and the NYC311 SCHE article. This is general information, not tax advice.
The Short Version
SCHE: for owners 65 and older with combined income of $58,399 or less.
DHE: for owners with a disability, with the same $58,399 income limit.
Savings: a 5% to 50% reduction in your home's assessed value, depending on income.
Deadline: March 15 for benefits starting July 1. The online application opens September 28.
Renewal: every two years for SCHE and every year for DHE, according to DOF.
You can't get both. If you qualify for both, you'll receive SCHE.
Help: call 311 or visit nyc.gov/contactdof.
How Much SCHE or DHE Can Save You
DOF uses a sliding scale. The lower your combined income, the bigger the reduction in assessed value:
Combined annual income | Assessed value reduction |
$0 to $50,000 | 50% |
$50,001 to $50,999 | 45% |
$51,000 to $51,999 | 40% |
$52,000 to $52,999 | 35% |
$53,000 to $53,899 | 30% |
$53,900 to $54,799 | 25% |
$54,800 to $55,699 | 20% |
$55,700 to $56,599 | 15% |
$56,600 to $57,499 | 10% |
$57,500 to $58,399 | 5% |
This table appears on DOF's SCHE page. Because SCHE and DHE share an income limit, check your DHE application instructions to confirm the same scale applies to you.
What this means in practice: a reduction in assessed value doesn't translate one-for-one into a smaller bill. Your actual savings depend on your home's assessed value and the tax rate for your property class. But at 50%, the reduction is substantial.
Notice how steep the scale is. Moving from $50,000 to $50,001 in income drops you from 50% to 45%. If you're near a threshold, calculate your income carefully. The income rules below can help.
SCHE: Who Qualifies
DOF lists these requirements:
Age
All owners must be 65 or older, unless the owners are spouses or siblings. If you own the home with a spouse or sibling, only one of you needs to be 65.
Income
The total combined annual income of the owner and spouse or co-owner can't exceed $58,399. Income includes, but isn't limited to:
Social Security and retirement benefits;
interest, dividends and IRA earnings;
capital gains;
net rental income;
salary or wages; and
net income from self-employment.
Ownership
You must have owned the property for at least 12 consecutive months before filing, unless you got the exemption on a home you owned before.
Residence
All owners must live in the home as their primary residence, except in cases of divorce, legal separation or abandonment. Owners receiving in-patient care at a residential health care facility may still be eligible.
How DOF Counts Your Income
This is where many applications go wrong, so it's worth slowing down. According to DOF:
If you file income tax returns, your combined income is your adjusted gross income (AGI) minus the taxable amount of any IRA distributions or individual retirement annuity distributions.
If you don't file returns, your income is based on what would have been reported if you had.
That IRA rule matters. If you take required withdrawals from an IRA, the taxable portion is subtracted, which can move you into a lower income band and a bigger reduction.
Longtime recipients have another option. If you received SCHE or DHE before June 13, 2024, DOF says you can also calculate income using an alternative method that adds up Social Security and retirement benefits, interest, dividends, capital gains and similar sources. Your application explains how.
DOF offers an optional Income Calculation Worksheet to help you estimate. You don't have to submit it.
DHE: Who Qualifies
The Disabled Homeowners' Exemption works similarly, with a few key differences.
Disability
DOF says DHE is for households with an owner or other legal resident who has a disability. All owners must have disabilities, unless the home is owned by spouses or siblings, in which case only one needs to.
You may also be eligible if:
you have a disability and your primary residence is held in a special needs trust; or
you have a tenant with a disability, depending on the lease terms.
Proof of disability
You'll need documentation, such as:
a disability award letter from the Social Security Administration;
an award letter from the U.S. Railroad Retirement Board or U.S. Postal Service;
a certificate from the New York State Commission for the Blind;
a Workers' Compensation Board order awarding compensation for permanent total or permanent partial disability; or
a Veterans Administration letter showing eligibility for disability compensation.
Income
The total combined income of all owners and their spouses can't exceed $58,399. The IRA rule and the pre-June 13, 2024, alternative method work the same as SCHE.
An Example: How the IRA Rule Can Change Your Band
Here's a simplified illustration using DOF's income rule for tax filers. Say a married couple, both over 65, has an adjusted gross income of $56,000 on their tax return, and $7,000 of that is the taxable part of IRA withdrawals.
AGI: $56,000
Minus taxable IRA distributions: $7,000
Income for SCHE: $49,000
At $56,000, the couple would fall in the 15% band. At $49,000, they're in the 50% band. Your own numbers will differ, and the application instructions control, but this shows why it pays to follow DOF's method closely instead of guessing.
Common Mistakes to Avoid
Using gross income instead of DOF's formula. Start from AGI and subtract the taxable IRA amount.
Leaving off a co-owner's income. SCHE counts the owner and spouse or co-owner. DHE counts all owners and their spouses.
Applying too soon after buying. SCHE generally requires 12 consecutive months of ownership first.
Missing a renewal notice. Watch your mail, especially for DHE, which DOF says renews every year.
Filing on March 15. A last-minute error can cost a year of benefits.
SCHE or DHE: Quick Comparison
SCHE | DHE | |
Who | Owners 65 and older | Owners with a disability |
Income limit | $58,399 | $58,399 |
Renewal | Every two years | Every year |
If you qualify for both | You get SCHE | You get SCHE |
Deadlines: When Your Benefit Starts
The deadline for both exemptions is March 15 to receive the benefit in the next tax year, which begins July 1. If March 15 falls on a weekend or holiday, the deadline moves to the next business day.
NYC311 explains the timing for this cycle:
2026/2027 application on time: benefits start July 1, 2026.
2026/2027 application late: benefits start July 1, 2027.
In other words, missing March 15 can cost you a full year of savings. DOF recommends filing well before the deadline so you have time to fix errors or send more information.
How to Apply
Online (recommended): DOF's online initial application is available September 28 through March 15. There are separate versions for houses and condos and for co-ops. NYC311 notes you can save your progress and finish later.
By mail: download and mail the paper application. DOF says filing online is faster.
In person: DOF runs Business Centers in the boroughs, including Manhattan, Queens and Staten Island, and holds outreach events. At events, all owners must be present to sign. Bring a government-issued photo ID, your documents, the application and any DOF letters.
Languages: DOF lists the application in several languages, including Arabic, Bengali, Chinese, French, Haitian Creole, Korean, Polish, Russian, Spanish and Urdu, though some translations are still coming.
Don't Forget to Renew
SCHE: renew every two years.
DHE: renew every year.
DOF says it will send you a notice when it's time. Renewals are accepted online between September 28 and March 15. If you miss a renewal, you risk losing the benefit for a year.
If things change, such as selling the home or no longer qualifying, DOF has an application to remove a previously granted exemption.
Getting Help
Call 311 or 212-NEW-YORK (212-639-9675) from outside the city.
Online: nyc.gov/contactdof.
Disability accommodations: contact DOF's Disability Service Facilitator through nyc.gov/contactdofeeo or 311.
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