Property Tax Relief Programs

Disabled Veteran Property Tax Exclusion

Disabled Veteran Property Tax Exclusion (G.S. 105-277.1C)
  • Eligibility Requirements - Must be permanent residence owned and occupied by an owner who is: a)Honorably discharged disabled veteran (Veteran who as of January 1 has a permanent and total service-connected disability or received benefits for specially adapted housing under 38 U.S.C.2101) or Unmarried surviving spouse of an honorably discharged disabled veteran. No age or income restrictions.
  • Application requirements - Requires 1 time application submitted prior to June 1.
  • Proof of Disability - Veteran should be able to provide VA award letter or VA response to Veteran’s request for certification. Assessment reduction = 1st $45,000 of value. Deadline to submit application is June 1.

Property Tax Relief for Elderly & Permanently Disabled Persons

Property Tax Relief For Elderly And Permanently Disabled Persons (G.S. 105-277.1)
North Carolina excludes from property taxes the greater of $25,000 or 50% of the appraised value of a permanent residence (including mobile homes) owned and occupied by a qualifying owner. A qualifying owner is 1 who meets all of the following requirements as of January 1 preceding the taxable year for which the benefit is claimed:
  1. Must be at least 65 years of age or permanently disabled (must have certification from licensed physician).
  2. Have a total gross income for the preceding calendar year of not more than $33,800. This includes all monies received such as Social Security, VA benefits, interest income etc. other than gifts or inheritances from a spouse, ancestor or descendant. For married applicants residing with their spouse, the income of both spouses must be included even if only 1 is an owner of the property.
  3. Must be a NC resident. Deadline to submit application is June 1.

Homestead Circuit Breaker Tax Deferment Program

Homestead Circuit Breaker Tax Deferment Program (G.S. 105-277.1B)
  • Ownership requirements - Must be 65 years of age or totally and permanently disabled; Must have owned and occupied home as your permanent legal residence for 5 years; Must be a NC resident; Income can not exceed 150% of the income eligibility limit for the Elderly/Disabled Exclusion.
  • Tax Limitation - If the income is $33,800 or less, taxes are limited to 4% of income. If income is greater than $33,800 but not more than $50,700 taxes are limited to 5% of income.
  • Deferred Taxes - Calculated taxes that exceed the 4% or 5% limit 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. Upon a disqualifying event, the last 3 years of deferred taxes preceding the current tax year become due and payable. The only exception is when deferred taxes become due and payable as a result of the death of the owner, in which they become delinquent on the 1st day of the 9th month following the date of death.
  • Disqualifying Events Which Trigger Payment (any of the following)
    1. Death of owner
    2. Transfer of the property
    3. Owner ceases to use the property as a permanent residence
  • Exceptions to disqualifying Events
    1. Death is not a disqualifying event if ownership passes to a co-owner or spouse
    2. Transfer is not a disqualifying event if title passes to a co-owner, or to a spouse as a result of a divorce proceeding
Deadline to submit application is June 1st. Annual applications are required for the circuit breaker program due to annual income verification. The Tax Collector will notify each owner by September 1 of each year of the accumulated sum of deferred taxes and interest.