Property Tax Relief

Opportunities continue to expand for North Carolinians seeking property tax relief. Tax year 2009 brings the debut of two new programs aimed at assisting elderly and disabled taxpayers: The Disabled Veteran Homestead Exclusion and the Circuit Breaker Homestead Deferment. In addition, the Elderly or Disabled Homestead Exclusion continues to be available for qualified owners.

A brief description of each program follows. You may obtain an application by clicking on the link below. If you are under 65 years of age but totally and permanently disabled, you must also complete form AV-9A. For additional information contact the Real Property Office at 919-989-5130.

Elderly or Disabled Homestead Exclusion

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 an income amount for the previous year that exceeds the income eligibility limit for the current year, which for the 2009 tax year is $25,600.

Disabled Veteran Homestead Exclusion

This program excludes up to the first $45,000 of the appraised value of the permanent residence of an honorably discharged veteran who has a total and permanent disability that is service-connected or who receives 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 a honorably discharged disabled veteran.

Circuit Breaker Homestead Deferment

Under this program, taxes for each year are limited to a percentage of the qualifying owner's income. A qualifying owner must either be at least 65 years of age or be totally and permanently disabled. For an owner whose income amount for the previous year does not exceed $25,600, the owner's taxes will be limited to 4% of the owner's income. For an owner whose income is between $25,601 and $38,400, the owner's taxes will be limited to 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.

Click here to Download Application

If you are under 65 years of age but are totally and permanently disabled, you must also complete the form below: