This program excludes the greater of the first $25,000 or 50% of the appraised value of the permanent residence of a qualifying owner. A qualifying owner must either be at least 65 years of age or be totally and permanently disabled. The owner cannot have a total household income amount for the previous year that exceeds the income eligibility limit for the current year, which for the 2022 tax year is $33,800. Applications must be filed by June 1 of the year application is being filed pursuant to the North Carolina General Statute 105-277.1. Applicants must complete the Application for Elderly, Disabled, and or Veteran Property Tax Relief (PDF) and the Certification of Disability for Property Tax Exclusion (PDF).
Disabled Veteran Exclusion Program
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 a surviving spouse (who has not remarried) of either a disabled veteran as defined above or of a veteran who died as a result of a service-connected condition whose character of service at separation was honorable or under honorable conditions, or also a service member who died from a service-connected condition in the line of duty and not as a result of willful misconduct. Applications must be filed by June 1of the year application is being filed pursuant to North Carolina General Statute 105-277.1C. Applicants must complete the Application for Property Tax Exemption or Exclusion (PDF) and the Certification for Disabled Veterans Property Tax Exclusion (PDF).
Circuit Breaker Property Tax Deferment
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
whose income does not exceed $50,700
If the owner’s income is $33,800 or less, then the portion of property taxes imposed on the residence that exceeds 4% of the owner’s income may be deferred. If the owner’s income is more than $33,800 but less than or equal to $50,700 then the portion of the property taxes on the residence that exceeds 5% of the owner’s income may be deferred. The deferred taxes become a lien on the residence and the most recent three years of deferred taxes preceding a disqualifying event become due with interest upon one of the following disqualifying events:
the owner transfers the residence;
the owner dies; or
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 apply for the opportunity to defer property taxes each and every year that you wish to defer taxes. An Application for Property Tax Exemption or Exclusion (PDF) must be filed by June 1 of the year the application is being filed pursuant to North Carolina General Statute 105-277.1B.