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 $33,800 - taxes limited to 4% of income (requires annual application and income verification)
• Income between $33,800 and $50,700 - taxes limited to 5% of income (requires annual application and income verification)
• Income cannot exceed $50,700
• Interest accrues on deferred taxes from the date they were originally due
• Must be 65 years of age or totally and permanently disabled on January 1
• 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).