What Is the NYC Disabled Homeowners' Property Tax Exemption?

The NYC Disabled Homeowners’ Exemption (DHE) is a property tax break of 5% to 50% for the primary residence of disabled New Yorkers with annual income of $58,399 or less. The tax break applies to condos, co-ops as well as one-, two-, and three-family homes.

The Disabled Homeowners’ Exemption works by reducing your qualifying home’s taxable assessed value by up to 50% based on your annual income:

Income between $57,500 and $58,399: 5% reduction in assessed value
Income between $56,600 and $57,499: 10% reduction in assessed value
Income between $55,700 and $56,599, 15% reduction in assessed value
Income between $54,800 and $55,699, 20% reduction in assessed value
Income between $53,900 and $54,799, 25% reduction in assessed value
Income between $53,000 and $53,899, 30% reduction in assessed value
Income between $52,000 and $52,999, 35% reduction in assessed value
Income between $51,000 and $51,999: 40% reduction in assessed value
Income between $50,001 and $50,999: 45% reduction in assessed value
Income between $0 and $50,000: 50% reduction in assessed value

The property must be used as a primary residence in order to qualify. However, your property may still be eligible if you are receiving in-patient care at a residential health care facility.

The NYC Disabled Homeowners’ Exemption (DHE) is a property tax break of 5% to 50% for disabled New Yorkers with annual income up to $58,399.

Except in the case of joint ownership by spouses or siblings, all owners must be persons with disabilities to qualify for the NYC Disabled Homeowners’ Exemption.

Thinking of buying in NYC? Estimate your buyer closing costs in NYC using Hauseit’s Seller Closing Cost Calculator, and consider Hauseit Agent Assisted FSBO or Hauseit 1% Full Service to save money when selling.

According to the Department of Taxation and Finance, “an applicant must have a physical or mental impairment, not due to current use of alcohol or illegal drug use, that substantially limits that person’s ability to engage in one or more major life activities, such as caring for one’s self, performing manual tasks, walking, seeing, hearing, speaking, breathing, learning or working.”

What constitutes proof of a qualifying disability in the eyes of New York State?

An award letter from the Social Security Administration certifying the applicant’s eligibility to receive Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI).
An award letter from the Railroad Retirement Board certifying the applicant’s eligibility to receive railroad retirement disability benefits.
A certificate from the State Commission for the Blind and Visually Handicapped stating that the applicant is legally blind.
An award letter from the United States Postal Service stating that the applicant is certified to receive a United States Postal Service disability pension.
An award letter from the United States Department of Veterans Affairs stating that the applicant is entitled to a veterans disability pension.

NOTE: If the award letter or certificate states that the applicant’s disability is permanent, there will be no need to refile evidence of disability in future years if renewal of the exemption is sought.

The total combined income of all owners and their spouses cannot exceed $58,399.

This includes all sources of income such as 1099s, W2s, Social Security benefits, pension payments, IRA and annuity earnings, capital gains, workers’ compensation, business income, rental income and interest.

The following items are excluded from the calculation of total combined income:

IRA distributions
Cash Assistance (Public Assistance)
Reverse mortgage proceeds (but any interest or dividends realized from the investment of such proceeds are income)
Supplemental Security Income (SSI)
Gifts, inheritances
Return of capital
Nazi persecution reparation payments
Federal Foster Grandparent Program payment

The annual application deadline for the Disabled Homeowners’ Exemption (DHE) is March 15th. You can apply electronically or download a paper application using the links below:

Thinking of buying in NYC? Estimate your buyer closing costs in NYC using Hauseit’s Buyer Closing Cost Calculator, and consider requesting a Hauseit Buyer Closing Credit to save money on your purchase.

The Disabled Homeowners’ Exemption must be renewed each year in order to continue receiving benefits.

The Department of Finance (DOF) will mail you a renewal reminder notice and application when it is time to renew your exemption.

A homeowner may not receive both the Disabled Homeowners’ Exemption (DHE) and the Senior Citizen Homeowners’ Exemption (SCHE) at the same time.

However, a recipient of the Disabled Homeowners’ Exemption may also receive Basic Star or Enhanced Star (School Tax Relief) benefits.

The Disabled Homeowners’ Property Tax Exemption is authorized under Section 459-c of the Real Property Tax (RPT) law of New York State.

Disclosure: Hauseit® and its affiliates do not provide tax, legal, financial or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, financial or accounting advice. No representation, guarantee or warranty of any kind is made regarding the completeness or accuracy of information provided.

The NYC Disabled Homeowners’ Exemption (DHE) is a property tax break of 5% to 50% for the primary residence of disabled New Yorkers with annual income of $58,399 or less. The tax break applies to condos, co-ops as well as one-, two-, and three-family homes.

The Disabled Homeowners’ Exemption works by reducing your qualifying home’s taxable assessed value by up to 50% based on your annual income:

Income between $57,500 and $58,399: 5% reduction in assessed value

Income between $56,600 and $57,499: 10% reduction in assessed value

Income between $55,700 and $56,599, 15% reduction in assessed value

Income between $54,800 and $55,699, 20% reduction in assessed value

Income between $53,900 and $54,799, 25% reduction in assessed value

Income between $53,000 and $53,899, 30% reduction in assessed value

Income between $52,000 and $52,999, 35% reduction in assessed value

Income between $51,000 and $51,999: 40% reduction in assessed value

Income between $50,001 and $50,999: 45% reduction in assessed value

Income between $0 and $50,000: 50% reduction in assessed value

The property must be used as a primary residence in order to qualify. However, your property may still be eligible if you are receiving in-patient care at a residential health care facility.

Except in the case of joint ownership by spouses or siblings, all owners must be persons with disabilities to qualify for the NYC Disabled Homeowners’ Exemption.

Thinking of buying in NYC? Estimate your buyer closing costs in NYC using Hauseit’s Seller Closing Cost Calculator, and consider Hauseit Agent Assisted FSBO or Hauseit 1% Full Service to save money when selling.

What constitutes proof of a qualifying disability in the eyes of New York State?

An award letter from the Social Security Administration certifying the applicant’s eligibility to receive Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI).

An award letter from the Railroad Retirement Board certifying the applicant’s eligibility to receive railroad retirement disability benefits.

A certificate from the State Commission for the Blind and Visually Handicapped stating that the applicant is legally blind.

An award letter from the United States Postal Service stating that the applicant is certified to receive a United States Postal Service disability pension.

An award letter from the United States Department of Veterans Affairs stating that the applicant is entitled to a veterans disability pension.

NOTE: If the award letter or certificate states that the applicant’s disability is permanent, there will be no need to refile evidence of disability in future years if renewal of the exemption is sought.

The total combined income of all owners and their spouses cannot exceed $58,399.

This includes all sources of income such as 1099s, W2s, Social Security benefits, pension payments, IRA and annuity earnings, capital gains, workers’ compensation, business income, rental income and interest.

The following items are excluded from the calculation of total combined income:

IRA distributions

Cash Assistance (Public Assistance)

Reverse mortgage proceeds (but any interest or dividends realized from the investment of such proceeds are income)

Supplemental Security Income (SSI)

Gifts, inheritances

Return of capital

Nazi persecution reparation payments

Federal Foster Grandparent Program payment

The annual application deadline for the Disabled Homeowners’ Exemption (DHE) is March 15th. You can apply electronically or download a paper application using the links below:

DHE Online Initial Application

DHE Online Initial Application for Co-ops

Download a DHE Paper Application

Thinking of buying in NYC? Estimate your buyer closing costs in NYC using Hauseit’s Buyer Closing Cost Calculator, and consider requesting a Hauseit Buyer Closing Credit to save money on your purchase.

The Disabled Homeowners’ Exemption must be renewed each year in order to continue receiving benefits.

The Department of Finance (DOF) will mail you a renewal reminder notice and application when it is time to renew your exemption.

A homeowner may not receive both the Disabled Homeowners’ Exemption (DHE) and the Senior Citizen Homeowners’ Exemption (SCHE) at the same time.

However, a recipient of the Disabled Homeowners’ Exemption may also receive Basic Star or Enhanced Star (School Tax Relief) benefits.

The Disabled Homeowners’ Property Tax Exemption is authorized under Section 459-c of the Real Property Tax (RPT) law of New York State.

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