North Carolina Form AV-9 Routes Three Programs: Elderly Exclusion (Greater of $25K or 50%), Disabled Veteran Full Exclusion, and the Circuit Breaker Deferment

Updated April 2026

North Carolina's three property tax relief programs all use a single application form (AV-9) but route into different statutory paths. The Elderly or Disabled Homestead Exclusion under G.S. §105-277.1 is the senior path: age 65+ or totally and permanently disabled, income at or below the annually-adjusted limit ($37,900 for the 2025 tax year), excludes the greater of $25,000 or 50% of the appraised value from property tax. Disabled veterans rated 100% service-connected use G.S. §105-277.1C for full or substantial exclusion of $45,000 of value (no income test). And the Circuit Breaker Tax Deferment under G.S. §105-277.1B caps property tax at 4% or 5% of household income, with the excess deferred as a lien repaid on sale.

Elderly/Disabled Homestead Exclusion (G.S. §105-277.1)

Eligibility for the 2025 tax year:

Age 65 or older as of January 1, 2025, OR totally and permanently disabled (any age) with physician or government-agency certification.
Income $37,900 or less for the 2024 calendar year (the income limit governing the 2025 tax year). Annually adjusted for inflation.
Owner of the residence on January 1, 2025, used as primary residence.
Qualifying owner must be a permanent resident of North Carolina.

Exclusion amount: the greater of $25,000 or 50% of the appraised value. So a senior with a $200,000 home gets the larger benefit (50% = $100,000 exclusion, vs. $25,000 minimum). A senior with a $40,000 home gets the $25,000 minimum (since 50% would be only $20,000). The dual-test mechanism ensures meaningful relief at both lower- and higher-value properties.

Disabled Veteran Exclusion (G.S. §105-277.1C): No Income Test

Veterans rated 100% permanently and totally disabled as a result of military service qualify for a $45,000 exclusion of appraised value with no income test. The exclusion also extends to certain unremarried surviving spouses. Apply via Form AV-9 with VA documentation of the 100% rating attached.

For a 100%-rated veteran who's also age 65+, the DV exclusion is generally more favorable because of the no-income-test design. But the elderly exclusion can be larger in dollar terms on higher-value homes (50% of appraised vs. flat $45,000). Run both calculations on Form AV-9 — applicants can elect whichever path is more favorable.

Is your North Carolina appraised value defensible?

The elderly exclusion is computed against the home's appraised value. If the appraisal is too high, the exclusion shields a smaller proportional share of your bill. An appeal pushes the base down so the exclusion shields a larger fraction of value.

✓ All 50 states✓ Instant results✓ $49 flat fee

Circuit Breaker Tax Deferment (G.S. §105-277.1B)

Distinct from the exclusion, the Circuit Breaker is a deferral program that caps a senior's out-of-pocket property tax at 4% of income if income is in the lower band, or 5% of income in the upper band (income limits roughly twice the elderly exclusion limit). The amount above the cap is deferred as a lien on the property, repaid when the home is sold or transferred.

Eligibility: age 65+ or disabled, owned the property for at least 5 consecutive years, North Carolina resident. The Circuit Breaker can stack with the elderly exclusion — the exclusion reduces the bill, the Circuit Breaker caps the post-exclusion remainder at 4% or 5% of income with the excess deferred. Most NC seniors choose the exclusion alone if it's sufficient; the Circuit Breaker fits seniors with substantial home equity who need cash-flow relief beyond the exclusion.

Frequently Asked Questions

My North Carolina home is appraised at $300,000. What's my elderly exclusion?

$150,000 — the greater of $25,000 or 50% of $300,000. The 50% test wins on any home appraised above $50,000. So your taxable value drops to $150,000, and your local property tax rate is applied to that reduced number. At a typical NC effective rate of ~0.8%, the exclusion saves you roughly $1,200/year. Compare against the Circuit Breaker if you have higher income but limited cash flow — the Circuit Breaker caps your bill at 4% or 5% of income with the rest deferred as a lien.

I'm a 100% disabled NC veteran with $80,000 income. Does income disqualify me?

No — the Disabled Veteran Exclusion under G.S. §105-277.1C has no income test. Your 100% service-connected permanent and total disability rating qualifies you for $45,000 of appraised value exclusion regardless of income. Don't apply under the elderly exclusion (which has the $37,900 income cap); apply under the DV exclusion via Form AV-9 with VA rating documentation. If you're also 65+ and the elderly exclusion would produce more dollar value (e.g., 50% of a high-value home exceeds $45,000), you can elect that path instead — but the DV path's no-income-test structure is usually the cleaner choice.

Can I claim the NC elderly exclusion AND the Circuit Breaker Deferment?

Yes if you qualify for both. They operate in sequence: the exclusion reduces the appraised value used for tax computation (so your bill is smaller), and the Circuit Breaker then caps your out-of-pocket payment at 4% or 5% of income, deferring any remainder as a lien on the property. Most NC seniors with moderate income don't need both — the exclusion typically brings the bill into range. The Circuit Breaker is structured for seniors with substantial home equity but cash-flow constraints; the lien is repaid when the home sells or transfers, so factor in the estate impact before claiming.