Tax Exemptions

Property Tax Relief for Elderly and Permanently Disabled Persons


Elderly and Disabled Exclusion:

    1. Income level $29,500 or below
    2. Must be 65 years of age or totally and permanently disabled
    3. Reduction of $25,000 or 50% of value of the home and 1 acre of land whichever is greater
Disabled Veterans Exclusion:

    1. Honorably Discharged Veterans and
    2. 100% disabled due to a service related injury
    3. Reduction of $45,000 off the value of the home and 1 acre of land
Circuit Breaker (DEFERRED TAXES)

    1. Must be 65 years of age or totally and permanently disabled
    2. Must have owned and occupied property as the owner’s permanent legal residence for five years.
    3. Must be a North Carolina resident
    4. Income cannot exceed $44,250
    5. Income below $29,500 – taxes limited to 4% of income (requires annual application & income verification)
    6. Income between $29,500 and $44,250 taxes limited to 5% of income (requires annual application & income verification)
    7. Deferred taxes are a lien on the property
    8. Interest accrues on deferred taxes from the date they were originally due
    9. Disqualifying event triggering rollback in taxes include:
    • death of the owner
    • transfer of the property
    • owner ceases to use the property as a permanent residence
    1. Rollback taxes are for the last 3 years preceding the current year of deferred taxes plus accrued interest
    2. For multiple owners – all owners must apply and qualify (estate by entirety does not count as multiple owners)
Income is defined as moneys received from every source other than gifts or inheritances received from a spouse, lineal ancestor, or lineal descendant. For married applicants residing with their spouses, the income of both spouses must be included, whether or not the property is in both names. Permanent residence is defined as a person's legal residence. It includes the dwelling, the dwelling site, not to exceed one acre and related improvements. The dwelling may be a single family residence, a unit in a multi-family residential complex, or a manufactured home.

To apply for this exclusion, please call (336) 753-6120. We will then mail you a "Senior Citizen's/Disabled Person's" application form which should be completed and returned to our office. To apply for this exclusion due to disability, you must attach a certificate which certifies that you are totally and permanently disabled from a physician licensed as a medical doctor in North Carolina or a governmental agency authorized to make such a determination. The deadline for submitting applications is June 1. You will receive written notification if the application is denied.
If you have previously received this exclusion, you do not need to apply again unless you have changed your permanent residence. If you have received the exclusion, and your income now exceeds $29,500, you must notify our office. If you received the exclusion because you were totally and permanently disabled, and you are no longer totally and permanently disabled, you must notify our office.

If the person receiving the exclusion has died, the person required by law to list the property must notify our office. Failure to make any of the notices required by law before June 1, will result in penalties and interest.

Visit http://www.dor.state.nc.us/publications/property.html for additional forms and information.