North Carolina excludes from property taxes a portion of the appraised value of a permanent residence owned and occupied by North Carolina residents who are at least 65 years of age or are totally and permanently disabled, and whose income does not exceed $31,000. The amount of the appraised value of the residence that may be excluded from taxation is the greater of twenty-five thousand dollars ($25,000) or fifty percent (50%) of the appraised value of the residence. Income means all moneys received from every source other than gifts or inheritances received from a spouse, lineal ancestor, or lineal descendant.
If you received this exclusion last year, you do not need to apply again unless you have changed your permanent residence. If you received the exclusion last year but the property no longer qualifies for any reason, please notify the assessor. Failure to notify the assessor that the property no longer qualifies for the exclusion may cause the property to be subject to discovery with penalties and interest pursuant to G.S. 105-312.
If you did not receive the exclusion last year, but are now eligible, you may obtain an application from the county tax department. The application must be filed with the county assessor by June 1.
North Carolina defers a portion of the property taxes on the appraised value of a permanent residence owned and occupied by a North Carolina resident who has owned and occupied the property at least five years, is at least 65 years of age or is totally and permanently disabled.
Under this program, taxes for each year are limited to a percentage of the qualifying owner’s income. For an owner whose income amount for the previous year does not exceed the income eligibility limit for the current year, which for the 2020 tax year is $31,000, the owner’s taxes will be limited to four percent (4%) of the owner’s income. For an owner whose income exceeds the income eligibility limit ($31,000) but does not exceed 150% of the income eligibility limit, which for the 2020 tax year is $46,500, the owner’s taxes will be limited to five percent (5%) of the owner’s income.
However, the taxes over the limitation amount are deferred and remain a lien on the property. The last three years of deferred taxes prior to a disqualifying event will become due and payable, with interest, on the date of the disqualifying event. Interest accrues on the deferred taxes as if they had been payable on the dates on which they would have originally become due. Disqualifying events are: 1) the owner transfers the residence; 2) the owner dies; or 3) the owner ceases to use the property as a permanent residence. Multiple owners of a permanent residence must all qualify for the circuit breaker before a deferment of taxes will be allowed.
You must file a new application for this program every year. The application may be obtained from the county tax department and it must be filed with the county assessor by June 1.
This program excludes up to the first $45,000 of the appraised value of the permanent residence of a disabled veteran. A disabled veteran is defined as a veteran whose character of service at separation was honorable or under honorable conditions and who has a total and permanent service-connected disability or who received benefits for specially adapted housing under 38 U.S.C. 2101.
There is no age or income limitation for this program. This benefit is also available to the unmarried surviving spouse of an honorably discharged disabled veteran. See N.C.G.S. 105-277.1C for the full text of the statute.
Form NCDVA-9 is a requirement and must be certified by the US Department of Veterans Affairs and filed with the tax assessor. The application and NCDVA-9 form must be filed with the county assessor by June 1.
Note: An owner who qualifies for the property tax homestead exclusion, the property tax homestead circuit breaker and the veterans exclusion may elect to take only one of these forms of property tax relief.
110 S Market Street • Trenton, NC 28585
Phone: 252-448-7571 • Monday – Friday, 8:00am–5:00pm