Property Tax Relief Programs
Applications Due Between January 1 and June 1
North Carolina offers three property tax relief programs for the permanent residence of qualified homeowners.
Elderly or Disabled 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. Permanent residence is defined as a person's legal residence and includes the dwelling, the dwelling site, not to exceed one (1) acre, and related improvements. A qualifying owner must be at least 65 years of age or 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 2024 tax year is $36,700. Both the applicant and spouse cannot exceed $36,700. For unmarried joint owners, each owner must apply separately, the benefit may not exceed the owner’s proportionate share of the property.
Requires a one-time application, copy of the applicant’s driver’s license, complete income tax return or proof of income if not required to file a tax return. Married applicants must provide driver’s license and proof of income for both spouses, regardless of if the property is listed under only one name. Totally and permanently disabled applicants must also provide form AV-9A with application.
Property Tax Calculation Example:
Property Tax Calculation Example:
| Original Tax Bill | Elderly/Disabled Tax Bill with Tax Relief |
Assessed Value | $150,000 | $75,000 |
Tax Bill Amount | $570.00 | $285.00 |
Solid Waste Fee | $125.00 | $0.00 |
Total Due | $695.00 | $285.00 |
Exemption Amount | $410.00 | |
Disabled Veteran Exclusion: 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 (1) a disabled veteran as defined above, (2) 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 (3) a servicemember who died from a service-connected condition in the line of duty and not as a result of willful misconduct.
Requires a one-time application, a copy of the applicant’s driver’s license, and Form NCDVA-9. For assistance with form NCDVA-9 please contact the Veterans Office at (828) 631-2231.
Property Tax Calculation Example:
| Original Tax Bill | Disabled Veteran Tax Bill with Tax Relief |
Assessed Value | $150,000 | $105,000 |
Tax Bill Amount | $570.00 | $399.00 |
Solid Waste Fee | $125.00 | $125.00 |
Total Due | $695.00 | $524.00 |
Exemption Amount | $171.00 | |
Circuit Breaker Tax Deferment Program: 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 and have owned and occupied the residence for the previous five years. For an owner whose income amount for the previous year does not exceed the income eligibility limit for the current year, which for the 2024 tax year is $36,700, the owner’s taxes will be limited to four percent (4%) of the owner’s income. For an owner whose income exceed the income eligibility limit ($36,700) but does not exceed 150% of the income eligibility limit, which for the 2024 tax year is $55,050, the owner’s taxes will be limited to five percent (5%) of the owner’s income. The difference between the taxes due and the taxes that would have been payable in the absence are a lien on the real property. The deferred taxes for the preceding three fiscal years are due and payable when the property loses its eligibility.
Both the applicant and spouse cannot exceed $55,050. For unmarried joint owners, each owner must apply and qualify separately.
Requires an annual application, copy of the applicant’s driver’s license, complete income tax return or proof of income if not required to file a tax return. Married applicants must provide driver’s license and proof of income for both spouses, regardless of if the property is listed under one name. Totally and permanently disabled applicants must also provide form AV-9A with application.
To qualify for 4% deferment based on the 2024 income limit of $36,700, the applicant must have a tax bill of $1,468.00 or greater. To qualify for the 5% deferment based on the 2024 income limit of $55,050, the applicant must have a tax bill of $2,752.50, or greater. Any tax bill amount over the qualifying income multiplied by the applicable percentage would be deferred.
Please contact Carson Neal for additional information at (828) 586-7542 or carsonneal@jacksonnc.org
AV-9 Application for Property Tax Relief
