Homeowners who are 65 and older or 100% totally and permanently disabled can get $25,000 or up to 50% off their primary residence value, whichever is greater, if they meet certain income and ownership requirements. Married couples can qualify even if only one partner is 65+ or disabled. This tax relief does not need to be paid back.

• Also called the Elderly or Disabled Homestead Exclusion
• Applicants must be 65 years of age or 100% totally and permanently disabled as of January 1 of the year applying
• Gross income for 2024 for a sole owner or both an applicant and spouse cannot exceed $37,900
• For unmarried joint property owners, each owner must apply separately, and benefit limitations may apply based on the percent of ownership
• Homeowners only apply once

This program excludes from taxation the first $25,000 or up to 50% (whichever is greater) of your home value and one (1) acre of land. Exclusion means some of the value of the primary residence will not be considered when your tax bill is created. Even if you do not qualify for the program in future years, the excluded value from prior years in which you did qualify does not become taxable.

Once approved for this program, you do not need to reapply unless your primary residence changes, your income exceeds the current annual income eligibility limit, or you are no longer 100% totally and permanently disabled. When the person receiving the exclusion becomes deceased prior to January 1, then the person listing the property is required by law to notify the Guilford County Tax Department of the change. The surviving spouse or joint property owner must reapply for the exclusion, if qualified. Failure to make any of these notices before June 1 will result in penalties and the possible loss of the exclusion.

Seniors and those disabled who’ve owned and occupied their primary residence for more than five (5) years can choose a program that ensures their property tax bill will not be more than 4-5% of their income. Homeowners might have to pay some of this tax relief back, for example, if they move or sell their home. This method creates a lien on your primary residence.

• Also called the Circuit Breaker Program
• Applicants must be 65 years of age or 100% totally and permanently disabled as of January 1
• Gross income for 2024 for both an applicant and spouse cannot exceed $37,900
• For unmarried joint property owners, each owner must apply and qualify separately
• All owners must have owned and occupied the residence for the previous five (5) years
• Homeowners must apply every year for this program

Under the Circuit Breaker tax deferment program, property taxes for each year are limited to a percentage of the owner’s income. Taxes above the limitation amount are deferred, which means they are delayed until a future date. If a disqualifying event occurs, the last three (3) years of deferred taxes become payable with interest. Disqualifying events include death of the owner or transfer of the property where the owner’s share is not passed to another qualifying owner, and failure to use the property as the owner’s permanent residence.

For an owner whose income amount for the previous year does not exceed the income eligibility limit for the current year, which for 2024 tax year is $37,900, the owner’s taxes will be limited to 4% of the owner’s income. For an owner whose income exceeds the income eligibility limit ($37,900) but does not exceed 150% of the income eligibility limit, which for the 2024 tax year is $56,850, the owner’s taxes will be limited to 5% of the owner’s income. Participation in this program requires all owners to apple and qualify.

However, the taxes over the limitation amount are deferred and remain a lien on the property. The last three (3) years of deferred taxes prior to a disqualifying event will become due and payable, with interest, on the date of the disqualifying event. Interest accrues on the deferred taxes as if they had been payable on the dates on which they would have originally become due. Disqualifying events are death of the owner, transfer of the property, and failure to use the property as the owner’s permanent residence. Exceptions and special provisions apply. See G.S. 105-277.1B for the full text of the statute.

Remember: You must file an application for the Circuit Breaker Tax Deferment Program each year.

Multiple Owners: Each owner (other than husband and wife as tenants by the entirety) must file a separate application. All owners must qualify and elect to defer taxes under this program or no benefit is allowed under this program. The Circuit Breaker Property Tax Deferment cannot be combined with either the Elderly or Disabled Exclusion or the Disabled Veteran Exclusion.

Veterans with a 100% total and permanent service-connected disability, or their unmarried surviving spouse, can get $45,000 reduction on the property value of their primary residence, no matter their income. This tax relief does not need to be paid back. The veteran and/or surviving spouse’s name that is applying must have his/her name on the deed. If two (2) veterans live in the home only one $45,000 reduction is allowed.

• Also known as Disabled Veterans Exclusion
• Veterans discharged under honorable conditions and 100% total and permanent service-connected disability or their unmarried surviving spouse may be eligible for a reduction in property tax
• There is no age or income limitation
• This is a one-time application

The Disabled Veteran Program excludes up to the first $45,000 of the appraised value of the permanent residence of qualifying individuals. To qualify, veterans must be discharged under honorable conditions who have a total and permanent disability that is service-connected or receive benefits for specially adapted housing under 38 U.S.C. 2101. Unmarried joint property owners must apply separately, and benefit limitations may apply based on the percent of ownership. If eligible, an owner may receive benefits under either the Elderly or Disabled Exclusion or the Disabled Veteran Exclusion. Once approved for the Disabled Veteran Exclusion, you do not need to reapply unless your disability or benefit status has changed.