Tax Administration

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Circuit Breaker Tax Deferment for Senior Citizens

Under this program, taxes for each year are limited to a percentage of the qualifying owner’s income.  The Annual Income Eligibility Limit for qualifying owners is set every year by the NC Department of Revenue.  The limit for 2017 is $29,500 for income received from all sources during the calendar year 2016.  A qualifying owner must either be at least 65 years of age or be totally and permanently disabled.  For an owner whose income amount for the previous year does not exceed $29,500, the owner’s taxes will be limited to four percent (4%) of the owner’s income.  For an owner whose income exceeds the income eligibility limit ($29,500) but does not exceed 150% of the income eligibility limit ($44,250) the owner’s taxes will be limited to five percent (5%) of the owner’s income.

However, the taxes over the limitation amount are deferred and remain a lien on the property.  The last three 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, or 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.

An annual application is required for continued participation in the Circuit Break Program! Click here for application.

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