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Tax Relief

Applying for Tax Relief

North Carolina offers three (4) Property Tax Relief Programs. They are as follows:

  • Elderly or Disabled Homestead Exclusion
  • Disabled Veteran Homestead Exclusion
  • Circuit Breaker Homestead Tax Deferment Program
  • AV-10 Application: All Other Exemptions or Exclusions

If you wish to apply for the Elderly or Disabled Homestead Exclusion, Disabled Veteran Homestead Exclusion, or the Circuit Breaker Homestead Tax Deferment Program, you may choose ONLY ONE of the programs that apply to you. There is one application for each of the three programs. An application should be filed NO LATER THAN June 1 of each year.

If you wish to apply for All Other Exemption or Exclusions, there is one application that must be filed DURING THE MONTH OF JANUARY each year.

The Elderly or Disabled Exclusion provides property tax relief for qualified North Carolinians who are age 65 and over or are totally and permanently disabled. This exclusion provides a deduction from property taxes of up to one-half of your home's assessed value plus your homesite, up to, but no more than, one (1) acre of land, or $25,000 (whichever is greater).

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Example:

Appraised Value

Discount

Taxable Value

Dwelling Value

$100,000

50% (-$50,000)

$50,000

Land Value

$10,000

50% (-5,000)

$5,000

Total

$110,000

50% (-$55,000)

$55,000

Your tax bill may be calculated using the following formula:

Taxable Value ÷ 100 x the combined tax rate = Tax Bill Amount

Please note: This example is a comparative guide and is provided as a general informational tool only. The tax rate is established during the month of June each year.

The Disabled Veterans Exclusion provides property tax relief for qualified, honorably discharged, disabled veterans who have a total and permanent service‐connected disability OR one that received benefits for specially adapted housing. The Exclusion provides a discount up to $45,000 of the assessed value of their permanent residence from property taxes.

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Example:

Appraised Value

Discount

Taxable Value

Dwelling Value

$100,000

-$45,000

$55,000

Land Value

$10,000

$0

$10,000

Total

$110,000

-$45,000

$65,000

Your tax bill may be calculated using the following formula:

Taxable Value ÷ 100 x the combined tax rate = Tax Bill Amount

Please note: This example is a comparative guide and is provided as a general informational tool only. The tax rate is established during the month of June each year.

The Circuit Breaker Tax Deferment program limits the amount of taxes qualified North Carolinians (age 65 and over or totally and permanently disabled) must pay on their permanent residence (homestead). Taxes are limited to a percentage of their income. The income limits are outlined in the current year's application and may be adjusted annually for cost-of-living. Taxes above that percentage are deferred until there is a disqualifying event. Upon disqualification, the amount which was deferred for the current year, plus previous 3 years, will come due.

* Homeowners who may also qualify for the Elderly/Disabled Homestead Exclusion should consider applying for the Elderly or Disabled Homestead Exclusion (see Tab #1). The exclusion may provide more tax relief than the Circuit Breaker Tax Deferment Program. Homeowners cannot be granted both types of property relief.

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The AV-10 Application is for property classified and excluded from the tax base under North Carolina General Statute: 105-275(8) Pollution abatement/recycling; 105-275(17) Veterans organizations; 105-275(18); (19) Lodges, fraternal & civic purposes; 105-275(20) Goodwill Industries; 105-275(45) Solar energy electric system; 105-275(46) Charter school property; 105-277.13 Brownfields-Attach brownfields agreement; 105-278.3 Religious purposes; 105-278.4 Educational purposes (institutional); 105-278.5 Religious educational assemblies; 105-278.6 Home for the aged, sick, or infirm; 105-278.6 Low- or moderate-income housing; 105-278.6 YMCA, SPCA, VFD, orphanage; 105-278.6A CCRC; 105-278.7 Other charitable, educational, etc.; 105-278.8 Charitable hospital purposes; 131A-21 Medical Care Commission bonds; 105-275(12) Nonprofit corporation or association organized to receive and administer lands for conservation purposes; 105-275(29a) Historic district property held as a future site of a historic structure; 105-277.14 Working waterfront property; 105-277.15A Site infrastructure land; 105-278 Historic property; 105-278.6(e) Nonprofit property held as a future site of low- or moderate-income housing. The application period is during the month of January each year.

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