HB 1042 updates North Carolina's property tax exemptions for nonprofit organizations that provide housing for low- or moderate-income individuals. The bill clarifies that land held by nonprofits for future affordable housing projects can remain tax-exempt for up to five years, with unpaid taxes deferred until the project is completed or the land is no longer used for this purpose. Additionally, the legislation establishes a new specific exemption for affordable rental housing, defining it as developments where more than half the units are rented to tenants earning at or below 80% of the area median income. These changes aim to provide clearer tax incentives for nonprofits developing and operating affordable rental properties.
HB 1181 modifies North Carolina's property tax relief programs for seniors and disabled individuals by increasing the income limit for married couples and eliminating deferred tax liability under the homestead circuit breaker. The bill expands eligibility for the circuit breaker to include homeowners earning up to 70% of the area median income and introduces an alternative tax calculation for those who have owned their homes for at least 10 years. Additionally, the legislation appropriates funds to assist counties with property reappraisals and imposes an excise tax on the transfer of controlling interests in entities that hold real property interests.
This bill expands the property tax exemption for disabled veterans and their surviving spouses in North Carolina by increasing the excluded home value from $45,000 to the entire appraised value of the primary residence. To offset the resulting loss in local tax revenue, the state will reimburse counties and cities for the taxes they no longer collect from these exempt properties. The legislation also allocates $100,000 to cover administrative costs and sets the changes to take effect for tax years beginning on or after July 1, 2027.
This bill proposes constitutional changes to North Carolina property tax laws, with a primary focus on allowing the state to use area median income as a standard for granting tax relief. It also modifies the existing homestead circuit breaker to adjust income eligibility limits and expands funding for property reappraisals. Because the core amendment requires voter approval, the bill currently sets up a referendum to be voted on by the public in November 2026. If approved, the change would enable the General Assembly to create property tax exemptions based on local income levels across the state. Additionally, the legislation updates rules for nonprofit housing exemptions and directs grant money to county commissioners to support more frequent property valuations.
HB 1179 modifies North Carolina's property tax relief programs to help seniors and disabled homeowners by allowing them to combine two existing benefits and removing a strict income cutoff that previously denied aid to those just above the limit. The bill introduces a gradual phaseout for the elderly homestead exclusion, reducing benefits by 3.33% for every 1% of income earned above 55% of the state median, while also permitting eligible owners to stack this relief with the circuit breaker program. Additionally, the legislation clarifies rules for seniors living in shared or inherited properties to ensure they can receive full relief if no other non-spouse owner resides there. To offset the increased costs for local governments, the bill requires the state to reimburse counties for revenue losses and provides funding to support more frequent property tax reappraisals.
SB 798 creates a new property tax relief program for North Carolina residents who are at least 65 years old and have lived in their home for at least five years. The bill allows these qualifying owners to defer paying the portion of their property tax bill that results from increases in the home's appraised value, using the home's value from the first year of the program as a baseline. This deferral acts as a lien on the property, meaning the unpaid taxes accumulate and become due only if the owner sells the home, dies, or stops living there permanently. The legislation also clarifies that married couples can share the benefit even if only one spouse meets the age and residency requirements, while prohibiting lenders from stopping owners from using this tax relief. The changes are scheduled to take effect for tax years beginning on or after July 1, 2027.
This bill directs $250,000 to the North Carolina Association of County Commissioners to fund grants for counties that advertise property tax relief programs. It also modifies the state's homestead circuit breaker program by raising the income eligibility limit to $45,000 for single applicants starting in 2027, with a higher threshold for married couples. Additionally, the law requires counties to report their total tax deferrals to the Secretary of Revenue by September 1 to receive reimbursement for those amounts. These changes take effect for tax years beginning on or after July 1, 2027, and July 1, 2026, respectively.
SB 109, the Veterans Appreciation Act, increases property tax relief for disabled veterans in North Carolina by expanding the homestead exclusion to cover the value increase from U.S. Department of Veterans Affairs (VA) housing grants. It directly affects disabled veterans who receive VA housing grants for service-connected disabilities, allowing them to exclude up to $45,000 of their home’s appraised value plus grant-funded improvements from property taxes. The bill adds a prequalification process, letting veterans apply in advance of purchasing a home to confirm eligibility, with county assessors required to notify applicants within 30 days. This change takes effect for property taxes on homes owned after July 1, 2025.
HB 786, the "Working Families Act," reduces child care costs for low-income families by lowering parent copayments from 10% to 7% of income (effective 2025), reinstates a refundable state child tax credit with income-based payments (effective 2025), and phases up North Carolina’s minimum wage to $15/hour by 2030 with annual inflation adjustments. It also increases income limits for property tax relief, creates a homebuyers’ assistance program for public servants (like firefighters and EMTs) as first-time buyers, and establishes a paid family leave insurance program funded through an employer grant program. The bill directly affects working families, hourly workers, public-sector employees, and households using subsidized child care or property tax relief. Key mechanisms include phased wage increases, income-tiered tax credits, and targeted housing support, all designed to reduce financial strain on low-to-moderate-income households.
HB 59 would increase the income eligibility limit for North Carolina's elderly or disabled property tax homestead exclusion from $25,000 to $48,000 for taxable years beginning July 1, 2026. This change would directly affect homeowners aged 65 or older, or those who are totally and permanently disabled, who meet other criteria (like being a North Carolina resident and owning their home as a permanent residence). The bill modifies the existing rule that currently limits eligibility to those with incomes under $25,000, raising the threshold to $48,000 while maintaining the exclusion amount as the greater of $25,000 or 50% of the home's appraised value. The change aims to expand access to this property tax relief for qualifying low-to-moderate income homeowners. (Note: The bill was withdrawn in June 2025 and has not become law.)
