Homestead Circuit Breaker Tax Deferment for Senior or Disabled Citizens

North Carolina

2018

Benefit Varies with Income

Circuit Breaker

Deferral

Under the program, taxes are limited to a percentage of income. The amount of the taxes deferred is a lien on the property. For tax year 2019, for applicants with income below the eligible level ($30,200), taxes in excess of 4% may be deferred. Those with income above the eligible level and below 150% ($45,300) of eligible income may defer taxes in excess of 5%. For tax year 2018, for applicants with income below the eligible level ($29,600), taxes in excess of 4% may be deferred. Those with income above the eligible level and below 150% ($44,400) of eligible income may defer taxes in excess of 5%. 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.

Other

Residential

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.

Age

Disability

Homeowner

Income Ceiling

Principal Residence

Other Criteria

Qualifying homeowners must be North Carolina residents and least 65 year of age 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 2019, income eligibility limit is $30,200. Applicants must have income less than 150% ($45,300) of the income eligibility limit. The limit is adjusted annually by the percentage of any cost-of-living adjustment to Social Security. For 2018, income eligibility limit is $29,600. Applicants must have income less than 150% ($44,440) of the income eligibility limit. The limit is adjusted annually by the percentage of any cost-of-living adjustment to Social Security. If an applicant ceases to be eligible for the program, the deferred amount from the previous three years will become due and payable.

Local government is unable to exercise an option

No local option regarding program features

Local government covers all of its tax loss

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

NC103_RR18