The Homestead Exclusion — What It Is
North Carolina's Elderly or Disabled Homestead Exclusion (G.S. 105-277.1) allows qualifying residents to exclude either $25,000 or 50% of the assessed value of their home from property tax — whichever is greater. This directly reduces the taxable value of your home and lowers your annual tax bill.
Exclusion Amount
$25,000 or 50%
Whichever is greater
Age Requirement
65+
Or permanently disabled
Income Limit (2025)
$37,900/yr
Combined household income
Application Deadline
June 1
Annual deadline
How Much Do You Save?
The savings depend on your home's assessed value and your county's tax rate. Here are examples across Triangle communities:
Wake County (~0.90%) · $450,000 home
Saves $225/yrExclusion
$25,000
Taxable Value
$425,000
Before
$4,050
After
$3,825
Durham County (~1.04%) · $450,000 home
Saves $260/yrExclusion
$25,000
Taxable Value
$425,000
Before
$4,680
After
$4,420
Wake County (~0.90%) · $300,000 home
Saves $1,350/yr — 50% kicks in hereExclusion
$150,000 (50%)
Taxable Value
$150,000
Before
$2,700
After
$1,350
The 50% option kicks in for lower-value homes — particularly useful for buyers at the lower price points in Carolina Arbors or Encore at Wendell Falls.
How to Apply
Add This to Your Move-In Checklist
The homestead exemption does not apply automatically when you buy — you must apply. Many new Triangle retirees miss the first year because they didn't know to apply by June 1. Put it on your calendar the moment you close.
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