Property Tax Homestead Circuit Breaker Program

Qualifications


This program (PDF) limits the amount of taxes one must pay annually on their permanent residence to a fixed percentage of their income. The amount of taxes above that percentage is deferred and does not have to be repaid until such time that a disqualifying event occurs. Upon disqualification the three most current years of deferred taxes become due and payable with interest.

Examples of disqualifying events:
  • Death
  • The property is no longer the taxpayer’s permanent residence
  • Transfer of the property
  • Exceeding income limit does not constitute a disqualifying event
  • Deferred taxes are a lien on the property
  • For multiple owners - all owners must apply and qualify (estate by entirety does not count as multiple owners)
  • Income below $30,200 - taxes limited to 4% of income (requires annual application and income verification)
  • Income between $30,200 and $45,300 - taxes limited to 5% of income (requires annual application and income verification)
  • Income cannot exceed $45,300
  • Interest accrues on deferred taxes from the date they were originally due
  • Must be 65 years of age or totally and permanently disabled
  • Must be a North Carolina resident
  • Must have owned and occupied property as the owner’s permanent legal residence for the last 5 years

Identification


The Social Security number information is mandatory and will be used to establish the identification of the applicant, 42 U.S.C. Section 405(c)(2)(C)(i).