Property tax is a tax paid on a property owned by an entity, corporation, or individual. This tax depends on the local government and where the party lives. The value of the home can also influence the total price. Keeping this in mind, homeowners and future home buyers might be wondering — what is the property tax in North Carolina?
Before buying or selling a home, it can be helpful to know the property tax prices in different cities around the state. For example, Charlotte, North Carolina, could have higher property taxes than a rural area.
Determining the property tax can help individuals figure out how much they will have to pay for a property tax bill in Charlotte, tax exemptions, the overall tax when selling a house, and the basics of selling a home in North Carolina.
Property Taxes in Charlotte North Carolina
So, the real question that many taxpayers and homeowners have is: What are the property taxes in Charlotte, North Carolina?
Understanding the basis of property tax records in Charlotte and the property tax assessment steps in Charlotte, NC, can help homeowners figure out how to calculate their specific taxes when selling a house. Use Buy my house in North Carolina to find out information on your home!
North Carolina’s property tax rates are much lower than that of other states in the U.S. The average property tax rate in the state as a whole was 0.77%, which is .3% lower than the national average of 1.07%.
Based on a home value of $250K, Davie County has a property tax rate of 0.77%, whereas the entire state of North Carolina offers a property tax of 0.82%. Compared to the national average of 1.11%, these numbers benefit homeowners. Homeowners in Davie County would pay just $1,925 for their tax compared to $2,775 for the national average.
When considering Charlotte, NC, this city is in Mecklenburg County. Since this is a very desirable place to live, the property tax in Charlotte and the cost of real estate are much higher.
In this case, the average property tax in Mecklenburg County for a $250K house comes to $2,375 annually, with the county tax rate coming to just under 1% at 0.95%. This payment is still $400 less per year compared to the national average.
Furthermore, there is no state property tax in North Carolina.
The local governments pre-sets the tax rates based on the current value of homes in the area and the specific property. Because of this, every city and county can have their taxes and unique inclusions, such as fire protection. Consider using a North Carolina tax calculator to find how much you will spend.
One last thing to remember as a homeowner is that property assessment happens once every eight years, and an accurate property tax rate for a home in Charlotte is hard to come by. Therefore, finding a median home value and annual property tax payment per county can help homeowners determine what they may be paying for the tax.
For example, in Mecklenburg County, the median home value comes to $219,800 — one of the most expensive in the state. The average property tax is $2,302, and the percentage is upwards of 1.05% (depending on the home value).
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North Carolina Property Tax Exemptions
Homeowners need to know how North Carolina property taxes work, the average property tax rates, and the property tax exemptions before making payments.
The property taxes in North Carolina depend on the value of the property. This type of property tax set-up is known as ad valorem, and can vary depending on the county in which a person lives.
A county assessor will come to a person’s property to determine the market value and must revalue the property every nine years. The purpose of this reappraisal and new assessed value is to evaluate the home and potentially alter the local property tax number for the upcoming fiscal year.
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So, who is eligible for a property tax exemption? Certain homeowners are eligible for what is called a “homestead exemption”. This allows homeowners to exempt upwards of $35K for their home or personal property.
In North Carolina, the homestead exemption works for any type of property, such as a burial plot, apartment, or family home. The only stipulations are that the property must be owned by a North Carolina resident and the residents must live on the property.
Within this state, the homestead exemption is automatically applied to those who qualify. Homeowners do not have to separately apply, which makes the process easier and quicker.
Furthermore, married couples who need to file for joint bankruptcy can double their homestead exemption for their property. This allows married couples who file together to protect upwards of $70K on their home. Property owners who have questions about filing for bankruptcy can contact the North Carolina Department of Revenue to find out more information about tax relief.
So — who can use this exemption?
Individuals can file for bankruptcy in the state if they have lived there for more than 6 months. Those who need to file for bankruptcy, and qualify for homestead exemptions, must live in North Carolina for over 2 years to qualify for both.
Property Tax Exemptions for Seniors and the Disabled People
Some individuals qualify for North Carolina property tax exemptions. Senior citizens living in North Carolina may qualify for tax exemption, which reduces the valuation by 50%. By 2020, seniors who had a total income of less than $31K per year were exempt from property tax payments.
Furthermore, seniors who are older than 65 years of age, or whose spouse is deceased, can exempt upwards of $60,000 under the homestead exemption. This case only applies if the real property was previously owned by the debtor or as a joint tenant.
In addition to senior citizens who qualify for the homestead exemption, disabled individuals can apply for this exemption. Disabled adults whose income does not exceed $31,000 can apply for exemptions from property taxes. If someone applies, they can exclude $25,000 or 50-% of the value of the property from the tax exemption.
For those who can qualify for this type of property tax exemption, they should fill out an application, attach a certificate that confirms the level of disability from a licensed medical professional, and send the application and certificate to the local government’s tax office which handles the property taxes and tax information.
Property Tax Exemption for Disabled Veterans
Lastly, disabled veterans are eligible for property tax exemption in North Carolina. North Carolina allows a discharged disabled veteran or unmarried spouse of an honorably discharged veteran to exclude upwards of $45,000 of property taxes from the value of the residence.
A veteran who has 100% permanent disability due to their service or receives benefits for housing can qualify for property tax exemptions.
As you can see, calculating the property tax in North Carolina has many moving parts. Along with understanding each county’s specific tax department, homeowners must consider the value of where they live. For example, a person in Northampton will not have the same appraisal value as a person who owns property in Raleigh.
Analyzing the different property values in municipalities across the state provides homeowners, and future home buyers, with more information regarding tax payments.
Every person who lives in North Carolina should speak with their local tax collector or read the North Carolina General Statute to fully understand stipulations regarding deferment, foreclosure fees, interest charge rates, and motor vehicles’ taxes in their county.
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