NC Property Tax Discounts Explained

North Carolina provides qualifying residents three great cost saving programs.  This article will explain NC Property Tax Discounts program benefits and requirements thoroughly.  In addition to showing you how to save money on property taxes, contact us to discover the best mortgage.  Mortgage loans available to retirees and disabled include VA, USDA, FHA, NC Housing Down Payment Assistance, MCC income tax credits, and Reverse Mortgages.  Keep in mind when purchasing a home, you must own the home first and then can apply for any property tax relief programs.  Our goal is to ensure that qualifying NC residents save money.

 The 3 NC Property Tax Discounts Offered Include

1. Elderly or Disabled Exclusion – NC General Statute 105-277.1
2. Circuit Breaker Tax Deferment Program – NC General Statute 105-277.1B
3. Disabled Veteran Exclusion – NC General Statute 105-277.1C

Details of “Elderly or Disabled Property Tax Exclusion”:

This program excludes the first $25,000 or 50% of the permanent residence’s tax value.  Though, NC tax offices use the higher of $25,000 or 50%.  Therefore a reduced tax value shows on the resident’s tax evaluation statement.  If you do not qualify for the program in future years, the excluded value from previous years does not become taxable.

In order to qualify for the Elderly or Disabled property tax relief in NC:

1. North Carolina resident 65 years old or more, or totally and permanently disabled; AND
2. Have an income of not more than $29,000 per year (as of 2014).  The income includes both the applicant and spouse

Details of “Circuit Breaker Tax Deferment Program”:

This program limits the property taxes to a percentage of the owner’s income.  Taxes above the limit are deferred to a future date.  The last 3 years of deferred taxes become payable with interest if a disqualifying event occurs.  Disqualifying event definitions are very specific.  First if the owner dies or transfers the property to another which doesn’t qualify.  Secondly, failure to use the home as the principal residence.  Additionally, income under the limit ($29,000 in 2014), limits the owner’s taxes to 4%.  Income between $29,000 and $43,500 limits the taxes to 5%.  There is one drawback of this program.  A new application must be completed each year.

In order to qualify for the Circuit Breaker Tax Deferment Program:

1. At least 65 years old or totally and permanently disabled
2. Total income for both an applicant and spouse cannot exceed $43,500 (based on 2014 income limits)

Details of the “Disabled Veteran Property Tax Exclusion Program”:

Disabled and honorably discharged Veterans may qualify for a large tax break!  Up to the first $45,000 in tax valuation is excluded in the Disabled Veteran Exclusion program.   First, the property must be a primary residence.  Then, the property owner must have a service connected total and permanent disability.  But a Veteran receiving benefits for specially adapted housing under 38 U.S.C 2101 may qualify as well.  Renewal applications are not required unless the property owner disability or benefit status changes.

In order to qualify for the Disabled Veteran Property Tax Exclusion Program:

1. Honorably discharged disabled veterans OR
2. Unmarried surviving spouse may be eligible for a reduction in property tax
3. No age or income restriction on this program

Hopefully this article on NC property tax discounts helps you or someone you know save money.