First Time Homebuyer Credits In New York
New York offers several pathways for first-time homebuyer tax relief in 2025. The state administers a Mortgage Credit Certificate program through the State of New York Mortgage Agency, known as SONYMA, which allows eligible buyers to claim a federal tax credit on a portion of mortgage interest paid each year. New York City also has its own programs, including the First-Time Homebuyer Tax Credit for cooperative and condominium purchases in certain circumstances.
New York state allows homeowners to deduct mortgage interest and real property taxes on the state return when itemizing, and the state's STAR program provides a school tax relief benefit that reduces property tax bills for primary residences. Enhanced STAR is available to seniors meeting income thresholds and provides a larger reduction, while Basic STAR applies to most other qualifying homeowners.
First-time buyers in New York should gather their SONYMA Mortgage Credit Certificate, Form 1098, and property tax bills from their county or city. New York City buyers in co-ops should obtain a letter from the co-op board showing their proportionate share of real estate taxes and mortgage interest, as these are not reported on a standard Form 1098.