How Much Is the New York Homestead Exemption?

For many New York homeowners, the word homestead exemption can sound like a property-tax discount. But New York actually has different types of homeowner protections, and confusing them can lead to the wrong answer.

If you are asking about the New York homestead exemption that protects a home from certain judgment creditors, the amount depends on the county where the property is located.

As of 2026, the current New York homestead exemption amounts are:

• $204,825 in New York City and in Nassau, Suffolk, Rockland, Westchester, and Putnam counties
• $170,700 in Dutchess, Albany, Columbia, Orange, Saratoga, and Ulster counties
• $102,400 in all other New York counties

These amounts have been in effect since April 1, 2024, and the next scheduled adjustment is April 1, 2027.

That distinction is important because the exemption is based on home equity, not simply the market value of the house.

What Is the New York Homestead Exemption?

The New York homestead exemption is a legal protection that can help protect a certain amount of equity in a person’s primary residence from some judgment creditors.

For example, imagine you own a home in Queens worth $600,000 and have $450,000 remaining on your mortgage.

Your approximate equity is:

$600,000 − $450,000 = $150,000

Because Queens falls within the highest exemption category, the current exemption is $204,825. Your $150,000 in equity would therefore fall within that exemption amount, assuming the other requirements are satisfied.

The exemption does not mean that the homeowner receives $204,825 from the government.

Instead, it is a protection against certain creditor enforcement actions.

New York Homestead Exemption by County

Here is the current breakdown:

The New York Department of Financial Services confirms that these amounts apply under CPLR § 5206 and related bankruptcy provisions.

So if someone asks, “How much is the New York homestead exemption?”, the answer depends on where the home is located.

What Does the Exemption Actually Protect?

The exemption generally protects a certain amount of equity in a qualifying homestead from certain money judgments.

Think of equity as the portion of the home’s value that belongs to you after subtracting debts secured by the property.

For example:

Home value: $500,000
Mortgage balance: $350,000
Approximate equity: $150,000

If the applicable homestead exemption is $204,825, that amount of equity falls below the current exemption.

But if the home’s equity is significantly higher than the applicable exemption, the situation can become more complicated.

What Counts as a Homestead?

New York’s homestead protection generally concerns a person’s primary residence.

Depending on the circumstances, a qualifying property can include different forms of residential property. The important point is that the exemption is not simply a blanket protection for every property a person owns.

A vacation property or investment property, for example, should not automatically be treated the same way as the homeowner’s primary residence.

Is the Homestead Exemption the Same as STAR?

No.

This is one of the most common points of confusion.

The STAR program is a New York property-tax benefit. Basic STAR is available for qualifying owner-occupied primary residences, while Enhanced STAR provides a larger benefit for qualifying seniors.

The homestead exemption under CPLR § 5206, on the other hand, concerns protection from certain money judgments and bankruptcy-related claims.

So:

STAR = property-tax benefit

Homestead exemption = protection involving certain creditors and judgments

They are completely different legal concepts.

Does the Homestead Exemption Apply to Bankruptcy?

Yes, New York’s homestead exemption is also relevant in bankruptcy.

New York law provides exemptions that can be used in bankruptcy, subject to the applicable bankruptcy rules and eligibility requirements. The New York Department of Financial Services lists the CPLR § 5206 homestead amounts alongside the bankruptcy exemptions under New York’s Debtor and Creditor Law.

However, bankruptcy is a complicated area of law. Whether a homeowner can use a particular exemption can depend on the person’s circumstances, residence, timing, debts, and other factors.

If bankruptcy is being considered, it is worth getting legal advice before transferring or selling property.

Can a Judgment Creditor Take Your House?

The homestead exemption does not mean a house can never be affected by a judgment.

If a homeowner has equity above the applicable exemption, a judgment creditor may have remedies available under New York law.

New York CPLR § 5206 establishes rules concerning the exemption and the circumstances under which a homestead with value exceeding the applicable threshold may be subject to a sale process.

This is why homeowners with substantial equity should not assume that having a homestead exemption makes the entire property untouchable.

What If You Are Married?

Married homeowners may have additional considerations.

Depending on the ownership and circumstances, each eligible owner may potentially have an exemption interest. The exact treatment can become complicated when spouses jointly own a property, particularly in bankruptcy or judgment-enforcement situations.

Rather than assuming that a married couple can simply double the exemption, it is better to have an attorney review the title, ownership structure, debts, and applicable law.

Does the Exemption Protect Against Every Debt?

No.

This is another important limitation.

A homestead exemption is not a magic shield against every claim involving a home.

Different rules can apply to obligations such as:

• Mortgage debt
• Certain secured debts
• Property taxes
• Some liens
• Certain government claims
• Debts connected to the property itself

The exemption is primarily a protection against certain money judgments, and the specific type of debt matters.

Why Home Equity Matters

A home’s purchase price is not what determines whether the exemption is enough.

What matters is the relationship between the property’s value and the debts secured against it.

Consider two homeowners:

Homeowner A

Home value: $550,000
Mortgage: $450,000
Equity: $100,000

Homeowner B

Home value: $550,000
Mortgage: $200,000
Equity: $350,000

They own homes worth the same amount, but their equity is dramatically different.

That difference can matter when applying the homestead exemption.

What If Your Home Has More Equity Than the Exemption?

Suppose someone owns a home in Queens with:

• Market value: $700,000
• Mortgage: $400,000
• Equity: approximately $300,000

The current Queens homestead exemption is $204,825.

That does not automatically mean the homeowner loses the house.

It means there may be approximately $95,175 of equity above the exemption before considering other costs, liens, priorities, and legal factors.

The actual outcome depends on the judgment, the property, other liens, and the applicable enforcement procedures.

Has New York Increased the Homestead Exemption Recently?

The current amounts were adjusted effective April 1, 2024.

The next scheduled adjustment is April 1, 2027.

There have also been legislative proposals to increase the exemption. For example, Assembly Bill A6390 proposed increasing the exemption to $250,000, but a proposal should not be confused with the law currently in effect.

This is important when researching the topic online because you may come across articles discussing proposed amounts that are not yet the applicable exemption.

Frequently Asked Questions

1. How much is the New York homestead exemption in 2026?

The current amount is $204,825 in New York City, Nassau, Suffolk, Rockland, Westchester, and Putnam counties; $170,700 in Dutchess, Albany, Columbia, Orange, Saratoga, and Ulster counties; and $102,400 in the remaining New York counties.

2. Is the New York homestead exemption the same as STAR?

No. STAR is a New York property-tax benefit, while the homestead exemption under CPLR § 5206 protects qualifying home equity from certain judgment enforcement and is also relevant to bankruptcy exemptions.

3. Does the homestead exemption protect my entire house?

No. It protects only the amount allowed under the applicable exemption rules. If your home’s equity exceeds the exemption, additional legal issues can arise.

4. Does New York’s homestead exemption apply to bankruptcy?

Yes, New York’s homestead exemption is relevant to bankruptcy, although bankruptcy eligibility and exemption rules can be complicated. The applicable facts should be reviewed with a bankruptcy or debtor-creditor attorney.

5. How do I calculate my home’s equity?

A simple starting point is to subtract the outstanding mortgage and other liens from the home’s current market value.

Home value − mortgage and qualifying liens = approximate equity

A lawyer can help determine which debts and liens should be included in a particular situation.

Final Thoughts

The answer to “How much is the New York homestead exemption?” depends on where you live.

For 2026, the maximum New York exemption is $204,825, applying to New York City and several downstate counties. Other counties have exemptions of $170,700 or $102,400.

Just remember that this is not the same thing as the STAR property-tax benefit. The homestead exemption deals primarily with protecting qualifying home equity from certain judgment creditors and also plays a role in bankruptcy.

If you have significant home equity, are facing a judgment, or are considering bankruptcy, getting advice before making changes to your property ownership can help you understand what protection actually applies to your situation.