The Ultimate Guide to North Carolina Property Taxes
Understanding North Carolina Property Taxes
North Carolina property taxes are a key source of revenue for local governments, with the effective property tax rate being 0.73%. The median property tax bill in North Carolina is $1,724, which is over $1,300 less than the national median. Property taxes in North Carolina are relatively low compared to other states. The state’s property tax system is “ad valorem,” meaning it is based on the value of the property. A county assessor determines the value of a property and is required to revalue a property at least once every eight years. The goal of the reappraisal is to determine the current market value of the property.
Are you interested in moving to North Carolina? It’s a great place to live, with dynamic cities, beautiful mountain scenery, beachfront living, and numerous recreational amenities. Residents enjoy a cost of living under the national average, with housing being one of the most affordable cost of living expenses.
Of course, what you actually pay for housing depends on the specific area you are looking to buy, the kind of housing (single-family or condo), and its particular features. A three-bedroom, two-bathroom single-family in Charlotte will cost more than a similar home in Chapel Hill.
As you go through your North Carolina home search, keep in mind the extra expenses that come with homeownership. Annual property taxes add several hundred to several thousand dollars to your housing payment. Our guide breaks down everything you need to know about North Carolina property taxes, specifically for real estate. Information on appealing property appraisals and local tax regulations can be found on the state’s website.
Note: While North Carolina does have a vehicle tax, this article focuses on real estate tax information.
North Carolina Property Taxes Compared To The Nation
If you look at the total tax burden, which compares property taxes, motor vehicle taxes, sales taxes, and any other kind of tax you would pay as a resident in North Carolina, residents pay an effective average tax rate of 7.89%. That’s annual income going towards total taxes. According to Wallethub, North Carolina has the 18th lowest state and local tax burden in the nation. It’s a middle-of-the-road state; your burden could increase, decrease, or stay about the same, depending on where you’re coming from.
Municipal property taxes are included within the overall property tax bill issued by counties, which may also include other potential fees, emphasizing the comprehensive nature of the billing process.
The average effective property tax rate in the nation is 0.82% of the assessed value. In North Carolina, the average rate is 0.99%. That ranks North Carolina as 20 out of the 50 states in property taxes paid as a percentage of owner-occupied housing value. In other words, it is less expensive than 29 states but more expensive than 19 states. Statewide, homeowners owed an average of $3,265.24 in 2024.
What Annual Property Taxes Are Owed Each Year?
North Carolina taxes three kinds of property: real property, personal property, and motor vehicles. Real property is what you would consider land and the buildings on that land. Real property can be classified as residential, commercial, agricultural, industrial, or special purpose.
Personal property is assets that are not real estate. The biggest distinguishing factor is that personal property is movable and not fixed in place.
Registered motor vehicles also pay property tax. Your vehicle’s tax bill will be part of its annual registration as part of the Tag & Tax Together program. You’ll receive a notice 60 days prior to registration expiration, and it is due by the 15th of the month following registration expiration.
The responsibility for paying property taxes lies with the party that owned the property as of January 1 of the tax year. Even if the property changes hands on January 2, the tax office considers the January 1 owner as liable for the taxes; any agreement to split the taxes is strictly between the buyer and seller. You can expect to receive your real property tax bill in July. While property taxes are due on September 1, they can be paid without incurring interest or penalties until January 6.
How Is My Property’s Assessed Value Determined?
All North Carolina counties are required to conduct a property reappraisal at least every eight years. Some counties do reappraisals on a six-year cycle or four-year cycle.
Six-year cycle or (other year) | Four-year cycle |
Alamance | Ashe |
Alleghany | Avery |
Bladen (7) | Brunswick |
Chowan | Buncombe |
Dare (5) | Burke |
Davidson | Cabarrus |
Duplin (5) | Catawba |
Durham (7) | Chatham |
Edgecombe (5) | Cleveland |
Franklin | Davie |
Granville | Forsyth |
Guilford (5) | Gaston |
Harnett (5) | Graham |
Hyde | Halifax |
Johnston | Haywood |
Nash (7) | Henderson |
Robeson | Iredell |
Rockingham (5) | Jackson |
Yadkin | Lee |
Lincoln | |
Macon | |
McDowell | |
Mecklenburg | |
Mitchell | |
Moore | |
New Hanover | |
Onslow | |
Orange | |
Person | |
Pitt | |
Polk | |
Randolph | |
Rowan | |
Rutherford | |
Stanly | |
Stokes | |
Surry | |
Transylvania | |
Union | |
Wake | |
Wilkes |
Any North Carolina counties not listed are on the eight-year reappraisal cycle. No counties are less than four years.
These reappraisals can be done in-house utilizing hired appraisal staff or through hiring an outside reappraisal firm. The goal is to ensure the property tax value matches the current market value.
Since all the counties are on a different reassessment cycle, up to 11 counties can be working through the reassessment process in any given year. Check with the assessor office in your county of residence for reappraisal year information
What to Know About North Carolina Property Taxes
North Carolina does not have a statewide property tax rate. The local taxing authorities set the tax rates based on the budgetary requirements for that fiscal year.Taxing jurisdictions include cities and municipalities, counties, and special districts like fire or sewer districts. The North Carolina Department of Revenue simply oversees the valuation and taxation of property by the various taxing units around the state.
In North Carolina, you will be subject to county property taxes. The state has 100 counties, meaning property tax rates vary widely. All property taxes are based on the property’s assessed value. To give you a ballpark, the average value of a North Carolina home is $195,670. The average homeowner pays 0.85% of their actual home value in North Carolina property taxes. This would be a tax of $1,663.20.
Your property taxes are collected by County Assessors Tax Collectors as appointed by the county commissioners. The County Commissioners set the tax rate for each county based on its taxable base and the budgetary requirements. Here’s how widely tax rates can vary:
County | Tax Rate | Last Reappraisal Year |
Macon County * | 0.27 | 2023 |
Mecklenburg County | 0.4831 | 2023 |
Wake County | 0.5135 | 2024 |
Orange County | 0.8629 | 2021 |
Gaston County | 0.599 | 2023 |
Cherokee County | 0.6100 | 2020 |
Buncombe County | 0.5176 | 2021 |
Scotland County** | 0.99 | 2019 |
* The lowest county rate as of 2024 **The highest county rate as of 2024
Depending on where you live, additional property taxes will be added to your bill based on the municipality, the school district, fire departments, and other special taxing authorities.
Calculating Real Estate Tax Rates
Even though a tax rate is high, that doesn’t mean those owners made the highest in taxes. Remember, property values play their role. So even though Macon County had the lowest tax rate, residents of Carteret County paid the lowest and Washington County residents the highest compared to their property values.
To see which counties paid the most and the least in property taxes, we use the effective tax rate. This measures the annual property tax paid as a percentage of total home value. Based on this table of average effective tax rates by county, residents in Watauga, Jackson, and Ashe counties paid the least expensive taxes. The most expensive effective tax rate was in Edgecombe, Northampton, Scotland, and Orange County.
Average effective tax rates don’t always tell the whole story. Look at Edgecombe, which has the highest county rate. The effective tax rate was 1.25%; however, the median property value was $85,200, and residents paid a median of $1,061 in property tax.
On the flip side, the least expensive Watauga County had a median home value of $239,400 with a median tax bill of $1,033.
The most expensive median tax bill was for Durham County, at $2,475 in 2020. Its average effective tax rate was 1.18%, and the median home value was $209,300.
When figuring your North Carolina property tax rate, look at all the factors, like median home values and taxing districts. So if you see Buncombe County, with its .4980 tax rate, and buy a home at its $600,000 median list price, you’re starting at $2,988 before factoring in school taxes or your local city tax.
Additionally, the assessor can modify your property tax bill between cycles for significant improvement and/or deletions. For example, if a vacant lot has a new single-family home, add a detached garage, a home addition, or conduct significant renovations, that would impact home value. If you make significant changes to the property that did not have a building permit issued, the owners must notify their local taxing authority. General maintenance like painting, replacing existing structures, or landscaping is not considered a property improvement requiring tax assessor notification.
How Do I Figure the NC Property Tax For My Home?
To determine the property tax on your North Carolina home, you’ll need to know a few pieces of information. First, find the assessed taxable value for your residence. Next, find the total number of mills in your local tax district.
Once you have these figures, calculate the mill rate by multiplying the total number of mills by 1,000. Then, apply this calculated property tax rate to the assessed taxable value to determine your property tax amount.
Tax rates vary based on the taxing authorities assigned to the address. You can have taxes for the individual municipality, school districts, fire departments, and the county.
Most counties operate a tax assessor website where you can find property tax information. Some of these enable you to search by address. This reveals the specific taxing information for a property you may be interested in. For example, check out Mecklenburg County’s Property Tax Information Page.
What Are Millage Rates, And Where Can I Find Them?
Property taxes are assessed in the unit called mills. In North Carolina, one mil equals one-hundredth of a dollar or, put another way, you pay $1 mil for every $100 of assessed value. The number of mills is your millage rate.
Here’s an example of calculating mills and property tax:
Assessed taxable value | $200,000 |
Divide by 100 | /100 |
Taxable value | =$2000 |
Local county tax rate is .32, multiply | x .32 |
Property tax owed | $640 |
Are There Any Homestead Exemptions in North Carolina?
North Carolina offers two homestead property tax exemptions designed to ease the tax burden for eligible homeowners. To qualify for either exemption, the home must be your primary residence, and you must have lived in North Carolina for more than two years.
One exemption is the North Carolina Senior Citizen exemption. This is a partial exemption worth at least $25,000 for seniors who are 65 years and older. You must have an income of $31,000 or less to qualify for the exemption. The state also has a property tax deferment program that limits how eligible homeowners pay North Carolina property taxes. You must also be at least 65 years old and have lived in the home for at least five years.
Disabled veterans can have a property tax exemption of up to $45,000 for themselves or for their unmarried surviving spouse. The disability has to be 100% related to their military service. If you take this exemption, you will not be eligible for other property tax breaks provided by North Carolina.
If you believe you qualify for a North Carolina property tax exemption, you’ll make an application with the local County Assessor’s office. Contact them for information on their application process.
What If I Do Not Pay My Property Taxes?
Each county handles delinquent taxes slightly differently, but all have four options under state law. These include putting a tax lien on the property, garnishing state income tax refunds, selling personal property, and foreclosing on the home. All counties publish a list of delinquent taxes.
What If I Disagree With My Tax Bill?
While you cannot change the tax rate, you can appeal property values. The first step if you feel your value is wrong is to contact the local County Tax Office. See if you can get the difference resolved before filing a formal appeal with the local Board of Equalization. See each county for the formal filing process. There are deadlines to file an appeal. If that ruling is unsatisfactory, you can make a final appeal with the State Property Tax Commission.
County-Specific Property Tax Information
Property tax rates vary widely by county in North Carolina. The average property tax rate in North Carolina was 0.82% of a home’s assessed value in 2021. The lowest median property tax paid was $701 in Bertie County, while the highest was $3,784 in Orange County. Some counties, such as Mecklenburg County, have a higher effective property tax rate of 0.80%, while others, such as Union County, have a lower effective property tax rate of 0.65%. It’s essential to check the specific tax rates and details for your county to understand your property tax obligations.
Tax Breaks for Homeowners and Seniors
North Carolina offers several tax breaks for homeowners and seniors. The homestead property tax exemption reduces the assessed value of a senior’s home by the greater of 50% or $25,000. Seniors with a total income of $37,900 or less may be eligible for this exemption. Additionally, North Carolina offers three property tax break programs for older residents, which can limit taxes to a percentage of a qualifying homeowner’s income. If your income did not exceed $36,700 in the 2023 tax year, your taxes will be limited to 4% of your income.
Staying Up-to-Date on Property Tax Changes
It’s essential to stay informed about property tax changes in North Carolina. The state’s property tax system is subject to change, and new laws and regulations can impact your tax obligations. You can check the North Carolina Department of Revenue’s website for updates on property tax rates, exemptions, and other relevant information. Additionally, you can consult with a financial advisor or tax professional to ensure you’re taking advantage of all the tax breaks available to you.
North Carolina Property Taxes
If you have any further questions about North Carolina property taxes, consult with a taxing expert or the local taxing authority. Your local real estate agent can also be a resource for local property tax information. If you are also looking at living in neighboring South Carolina, you can also learn more about South Carolina Property Taxes and how they differ.
Disclaimer: This article is intended as informational and should not be used as tax advice. Consult with a tax professional regarding any questions you may have.
Updated August 2024