North Carolina Property Tax Relief for Homeowners: 2026 Income Limits and the June 1 Deadline

North Carolina doesn’t have a general homestead exemption for every homeowner. Instead, it has three relief programs for specific groups: older or disabled homeowners with modest incomes, and disabled veterans. All three use the same application, Form AV-9, filed with your county tax assessor by June 1 [1][3].

What an “exclusion” does

An exclusion takes part of your home’s value off the tax roll. If a home is appraised at $200,000 and qualifies for the elderly or disabled exclusion, 50% of the value ($100,000) is more than $25,000, so $100,000 is excluded and you’re taxed on the other $100,000. On a $40,000 home, 50% is only $20,000, so the $25,000 minimum applies instead [3][4]. The dollar savings depend on your local tax rates.

1. Elderly or Disabled Exclusion

You can qualify if, as of January 1, you own and live in the home as your permanent residence and you’re 65 or older or totally and permanently disabled [4]. Your income for the previous year, combined with your spouse’s, can’t be more than $38,800 for the 2026 tax year [2][3][4].

If you qualify because of a disability, you also need Form AV-9A, a certification from a physician licensed in North Carolina or from a government agency [1][3].

Once approved, you usually don’t need to reapply every year. You do have to tell the assessor if your income goes over the limit, you’re no longer disabled, or you move [3][4].

2. Circuit Breaker Tax Deferment

The circuit breaker limits your yearly property tax to a share of your income [3][4]:

• 4% of your income if your income is $38,800 or less,
• 5% of your income if it’s over $38,800 and up to $58,200.

To qualify, you must be 65 or older or totally and permanently disabled, and every owner must have owned and lived in the home for the previous five years [1][4].

3. Disabled Veteran Exclusion

This exclusion takes up to $45,000 off the appraised value of the veteran’s permanent home [3][4]. There’s no age or income limit [4]. It’s for:

• veterans discharged honorably or under honorable conditions with a total and permanent service-connected disability, or who receive specially adapted housing benefits [3][4], and
• the unmarried surviving spouse of a qualifying veteran, or of a servicemember who died from a service-connected condition in the line of duty [1][4].

Choosing a program

You can’t combine the circuit breaker with either exclusion [1]. If you think you qualify for more than one and aren’t sure which saves more, Form AV-9 lets you check more than one program. Once tax rates and values are set, the assessor will tell you your options [1].

How to apply

1. Get Form AV-9 for the right tax year from your county tax office or the N.C. Department of Revenue website. Don’t send it to the Department of Revenue: it goes to your county assessor [1].
2. Add Form AV-9A if you’re applying based on a disability [1].
3. File by June 1 [3][4]. Some counties may accept a late application for good reasons; Wake County, for example, lists serious illness, hospitalization, a death in the family and military deployment [4].
4. Watch for the assessor’s decision. The notice explains how to appeal if you disagree [1].