Circuit Breaker Program

Requirements

• Property must be owned & occupied at least 5 years by a North Carolina Resident who is at least 65 years of age or totally & permanently disabled.
• If the owner's income is $36,700 or less, then the portion of property taxes imposed on the residence that exceeds 4% of the owner's income may be deferred.
• If the owner's income is more than $36,700 but less than or equal to $55,050, then the portion of the property taxes on the residence that exceeds 5% percent of the owner's income may be deferred.
• Multiple owners of a permanent residence must all qualify for the circuit breaker before a deferment of taxes will be allowed.

Program Details

The deferred taxes become a lien on the residence and the most recent three years of deferred taxes preceding a disqualifying event become due with interest upon one of the following disqualifying events:

1. the owner transfers the residence;
2. the owner dies;
3. the owner ceases to use the property as a permanent residence.

You must apply for the opportunity to defer property taxes each and every year that you wish to defer taxes. Applications must be made prior to June 1 of the year for which exemption is desired.