State law provides for a reduction of property taxes for certain qualified taxpayers 65 years of age or older, those citizens who are totally and permanently disabled, and Honorably Discharged Veterans that are 100% totally disabled from a service-connected disability. Further information about this feature of the law may be obtained by clicking on the links and application links below.
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. 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. See G.S. 105-277.1 for the full text of the statute.
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 who honorable or under honorable conditions, or (3) a service member who died from a service-connected condition in the line of duty and not as a result of willful misconduct. See G.S. 105-277.1C for the full text of the statute.
Circuit Breaker Property Tax 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 b totally and permanently disabled. For an owner whose income amount for the previous year does not exceed the income eligibility limit for the current year, the owner’s taxes will be limited to four percent (4%) of the owner’s income. For an owner whose income exceeds the income eligibility limit, but does not exceed 150% of the income eligibility limit, the owner’s taxes will be limited to five (5%) of the owner’s income.
Information that MUST be provided for income verification when applying for or confirming age / disability exemption are:
- Copy of income tax from previous tax year
- Copy of SSA 1099 from previous tax year, showing total amount of Social Security Benefits
- Copy of statement showing pension or retirement benefits received for previous year
- Copy of statement showing disability payments received during the previous year.
- Any financial statement showing interest received from checking accounts, savings accounts, money market accounts, certificates of deposit, IRA distributions, 401 K distributions, etc. during the previous year
- Statements showing rental income from farms, houses, mobiles homes, or businesses for the previous year
- Statements showing tobacco allotment monies, etc.
- Statements showing any alimony or child support
- Copies of W2 forms if they worked during the previous tax year
- Statements showing SSI benefits for the previous tax year.