Homestead Circuit Breaker Tax Deferment Senior or Disabled Citizens


North Carolina



Variations in Receipt of Benefit

Benefit Varies with Income

Benefit Type

Circuit Breaker



Under the program, taxes in excess of the income limit may be deferred. The amount of the taxes deferred is a lien on the property. For applicants with income below the eligible level ($29,550), taxes in excess of 4% may be deferred. Those with income above the eligible level and below 150% ($44,250) of eligible income may defer taxes in excess of 5%.

How is Benefit Disbursed


Eligible Property Type


Characteristics of Eligible Property

Only residential property is eligible for the relief. Up to one acre of land on which the residence is located is also eligible for the exclusion. Residential property can include a single family residence, an unit in a multi-dwelling complex, or a manufactured home.

Eligibility Criteria




Income Ceiling

Principal Residence

Other Criteria

Description of Eligibility Criteria

Qualifying homeowners must be North Carolina residents and least 65 year of age as of January 1 preceding January 1 of the taxable year the benefit is claimed or have a total and permanent disability. They must own and occupy the homestead as a principal place of residence for at least 5 consecutive years. If the property has multiple owners who are not married, all owners must qualify and elect to defer the taxes. For 2017, the eligible income limit in the preceding year is $29,500. Applicants must have income less than 150% ($44,250) of the income eligibility limit. The limit is adjusted annually by the percentage of any cost-of-living adjustment to Social Security. The deferred amount from the previous three years will become due and payable if the property is no longer the permanent residence of either the owner, co-owners, or spouse.

Local Option in Adoption of Program

Local government is unable to exercise an option

Local Option Regarding Program Features

No local option regarding program features

State Funding for Local Tax Loss

Local government covers all of its tax loss

Description of State Funding for Tax Loss

The statue is silent regarding whether or not the state reimburses the local governments for any tax loss.

Record ID



An owner who receives this benefit may not receive other property tax relief. An otherwise qualifying owner does not lose the benefit because of a temporary absence from their residence for medical reasons or if the qualified owner is confined to a rest home or nursing home. During this period, the residence must be unoccupied or occupied by the owner's spouse or other dependent. If the owner is not eligible for a continued deferral for a tax year, the deferred taxes are carried forward. Three years of deferred taxes are due when the property is sold or is no longer the permanent residence. To receive the benefit, an application must be submitted by June 1st of the year preceding the year that the benefit is claimed. The application must be filed every year.


N.C. Gen. Stat. § 105‑277.1B (in effect for 2017)
2017 Application for Property Tax Relief (2016) North Carolina Department of Revenue [ Accessed on 05/29/2018]
View Archived Source

Join Our Mailing List

Back to top