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Property Tax Relief Programs
North Carolina offers three Property Tax Relief programs for qualifying taxpayers:
For qualification purposes, income is defined as all monies received from every source other than gifts or inheritances received from a spouse, lineal ancestor, or lineal descendant. For married applicants residing with their spouse, the income of both must be included, whether or not the property is in both names
- Elderly or Disabled Exclusion
- Disabled Veteran Exclusion
- Homestead Circuit Breaker
For qualification purposes, income is defined as all monies received from every source other than gifts or inheritances received from a spouse, lineal ancestor, or lineal descendant. For married applicants residing with their spouse, the income of both must be included, whether or not the property is in both names
Basic Qualification Criteria
The basic qualification criteria and information for each program are listed below:The basic qualification criteria for the Elderly or Disabled Exclusion program includes:
- Age 65 or older or total and permanent disability
- Income must be $36,700 or less
- Must be a North Carolina resident
- Ownership is determined as of January 1st
- One time application required.
- Deadline to submit application is June 1.
- Assessment reduction of $25,000 or 50% of the appraised value, whichever is greater.
The basic qualification criteria for the Disabled Veteran Exclusion includes:
- Permanent residence owned and occupied by an honorably discharged disabled veteran or the unmarried surviving spouse of an honorably discharged veteran
- Veteran who as of January 1 has a permanent and total service-connected disability
- Must be a North Carolina resident
- Ownership is determined as of January 1st
- Assessment reduction of $45,000
- No age requirement
- No income requirement
- One time application required
- Deadline to submit application is June 1
- Must provide veteran's disability certification from VA or other federal agency or present evidence of benefits received for specially adapted housing under 38 USC 2101
The Veterans Certification of Disability form (NCDVA Form 9) (PDF) for the Disabled Veterans Property Tax Exclusion may be obtained online or contacting the Land Records Division.
The basic qualification criteria for the Homestead Circuit Breaker program includes:
- Age 65 or older or total and permanent disability
- Must have owned and occupied property as the owner's permanent legal residence for 5 years
- Must be a North Carolina resident
- Ownership is determined as of January 1st
- Income can not exceed $55,050
- Tax Limitation is 4% of income is $36,700 or less
- Tax Limitation is 5% of income if income is between $36,701 to $55,050
- Income = $0 to $36,700: Taxes are limited to 4% of income.
- Income = $36,701 to $55,050: Taxes are limited to 5% of income.
- Income= Over $55,050: Does not qualify.
- Taxes over the limitation are deferred taxes
- Deferred taxes are a lien on the property
- Interest accrues on deferred taxes as if they had been payable on the original due dates
- The last three years of deferred taxes preceding the current tax year become due and payable upon a disqualifying event
- Disqualifying events are:
- Death of the owner
- Transfer of the property
- Owner ceases to use property as a permanent residence
- There are certain exceptions to disqualifying event rules
- Death is not a disqualifying event if ownership passes to a co-owner or spouse
- Transfer is not a disqualifying event if title passes to a co-owner, or to a spouse as a result of divorce proceeding
- Requires annual application
- Deadline to submit application is June 1