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Homestead Exclusions
North Carolina offers three Property Tax Relief Programs:
- Elderly or Disabled Homestead Exclusion
- Disabled Veterans Homestead Exclusion
- Circuit Breaker Homestead Tax Deferment Program
Click here to check if you meet the minimum qualifications.
You may choose only one of the programs which apply to you. There is one application that is used for all three programs. Applications should be submitted no later than June 1st of each year.
Application for Property Tax Relief AV-9 (PDF)
Application for Property Tax Relief AV-9 Property Tax Relief Instructions (PDF)
Elderly or Disabled Homestead Exclusion (One-time application required)
Exclusion for elderly/disabled persons 65 years old as of January 1 of the current year or totally and permanently disabled, is a permanent resident of North Carolina, and whose last year's income does not exceed $33,800.
Elderly or Disabled Homestead Exclusion ~ NC GS 105-277.1 (PDF)
Requirements:
Be a North Carolina resident
- Must be at least 65 years of age or totally and permanently disabled
- Own or occupy a permanent residence on or before January 1
- Annual income cannot exceed $33,800
The exclusion amount is the greater of $25,000 or 50% of the assessed value of the home and up to one acre of land.
Types of Income
- 401K and 457 Distributions
- A.F.D.C.
- Alimony
- Annuities
- Business Income
- Capital Gain
- Child Support (paid directly to you)
- Disability
- Dividends
- Farm Income
- Foster Care Payments
- Gambling Income
- Interest
- IRA Distributions
- October, November and December Bank Statements
- Pensions
- Railroad Retirement
- Rental Income
- Social Security
- SSI
- Unemployment
- VA Benefits
- Wages
- Workers Compensation
| Example | Appraised Value | Discount | Taxable Value |
|---|---|---|---|
| Dwelling Value | $100,000 | 50% (-$50,000) | $50,000 |
| Land Value | $10,000 | 50% (-$5,000) | $5,000 |
| Total | $110,000 | 50% (-$55,000) | $55,000 |
Your tax bill may be calculated using this formula: Taxable Value divided by 100, multiplied by the combined tax rate equals Tax Bill Amount.
Please Note: This example is a comparative guide and is provided as a general informational tool only. The tax rate is established during the month of June each year.
Temporary Absence
A qualified owner does not lose the benefit of this exclusion because of a temporary absence from their permanent residence for reasons of health or because of an extended absence while confined to a rest home or nursing facility, so long as the residence is unoccupied or occupied by the owner's spouse or other dependent.
Removal of Exclusion because of Sale or Death
If the sale of your residence or death occurs between January 1 and July 1 of the current year, the exclusion will be removed for the current tax year. If the sale of your residence or death occurs on or after July 1 of the current year, the exclusion will remain on for the current tax year.
- Application for Property Tax Relief AV-9 (PDF)
- Application for Property Tax Relief AV-9 Certification of Disability (PDF)
- Application for Property Tax Relief AV-9 Property Tax Relief Instructions (PDF)
Disabled Veterans Exclusion (One-time application required)
Exclusions for honorably discharged veterans whose disability is service-connected and has been certified by the Department of Veterans Affairs as 100% permanently and totally disabled or the surviving spouse of an honorably discharged veteran who has never remarried. (No age or income required).
Disabled Veterans Exclusion ~ NC GS 105-277.1C (PDF)
Requirements:
- Be a North Carolina resident
- Veteran who as of January 1 has a permanent and total service-connected disability
- Permanent residence owned and occupied by an honorably discharged veteran OR unmarried surviving spouse of an honorably discharged veteran
- Must provide veteran's disability certification from VA or other federal agency OR present evidence of benefits received for specially adapted housing under 38 USC 2101
- No age limitation or income required.
The exclusion provides a discount up to $45,000 of the assessed value from permanent residence property taxes.
| Example | Appraised Value | Discount | Taxable Value |
|---|---|---|---|
| Dwelling Value | $100,000 | $45,000 | $55,000 |
| Land Value | $10,000 | 0 | $10,000 |
| Total | $110,000 | $45,000 | $65,000 |
Your tax bill may be calculated using the following formula: Taxable Value divided by 100, multiplied by the combined tax rate equals Tax Bill Amount.
Please Note: This example is a comparative guide and is provided as a general informational tool only. The tax rate is established during the month of June each year.
- Application for Property Tax Relief AV-9 (PDF)
- Application for Property Tax Relief NCDVA-9 Certification for Disabled Veteran (PDF)
- Application for Property Tax Relief AV-9 Property Tax Relief Instructions (PDF)
Circuit Breaker Deferment (Annual application is required)
The Homestead Circuit Breaker is the deferral of property taxes that exceed tax limitations. This tax deferment program is for North Carolina residents who meet all the qualifications for the Homestead Exclusion, plus they have owned and occupied their permanent residence for at least five years and their income does not exceed $50,700.
The deferred taxes are a lien on your property. Interest accrues on deferred taxes as if they had been payable on the dates on which they would have originally become due.
Circuit Breaker Exclusion ~ NC GS 105-277.1b (PDF)
Requirements:
- Be a North Carolina resident
- Must be at least 65 years of age or totally and permanently disabled
- Own and occupy property as a permanent residence for 5 years
- Annual income cannot exceed $50,700
- Annual application is required
- Deadline to submit application is June 1
| Income | Tax Limitation |
|---|---|
| $0 to $33,800 | 4% |
| $33,801 to $50,700 | 5% |
| Over $50,700 | Does not qualify |
Deferred Tax Information
- Taxes over the limitation are deferred taxes
- Deferred taxes are a lien on the property
- Interest accrues on deferred taxes as if they had been payable on the original due date
- The last three years of deferred taxes preceding the current tax year become due and payable upon disqualifying event
Disqualifying Events
- Death of owner
- Transfer of the property
- Owner ceases to use property as a permanent residence
Exceptions to Disqualifying Events
- Death is not a disqualifying event if ownership passes to a co-owner or spouse
- Transfer is not a disqualifying event if title passes to a co-owner, or to a spouse as a result of a divorce proceeding
Application for Property Tax Relief AV-9 (PDF)
Application for Property Tax Relief AV-9 Certification of Disability (PDF)
Application for Property Tax Relief AV-9 Property Tax Relief Instructions (PDF)
- Do I have to apply in person?
-
For these exclusions, the qualifying homeowner may submit an application by mail to:
Gaston County Tax Department
Attn: Homestead
P.O. Box 1578
Gastonia, NC 28053Or in person at the Tax Department. For further information, please call 704-866-3158, ext. 6.
- How can I show that I am 100% totally and permanently disabled?
-
You must furnish a certification (Application for Property Tax Relief - AV9 Certification of Disability (PDF)) that you are totally and permanently disabled. This certification must be signed by a licensed physician. NOTE: A physician’s assistant signature will not be sufficient. The agency must have the proper authority to determine qualifications for disability benefits. If you or your spouse are over 65 years old, you do not need to submit a certification of disability.
- What happens if I apply and qualify for the Circuit Breaker Deferred Tax Program for one or more years and in the future I no longer qualify or I fail to submit the required annual application?
-
Until a disqualifying event occurs, the deferred taxes will not become due. Since incomes can vary from year-to-year, it is possible that you may qualify one year, but not the next, and then re-qualify in a subsequent year.