North Carolina Disabled Veteran Property Tax Exemptions in 2026
Does North Carolina Exempt Disabled Veterans From Property Tax?
North Carolina excludes the first $45,000 of appraised value from property tax on the permanent residence of a Veteran with a 100% service-connected permanent and total disability rating, or a Veteran receiving VA Specially Adapted Housing benefits under 38 U.S.C. 2101. The benefit is a partial exclusion, not a full exemption. File Form NCDVA-9 (certified by a North Carolina Veterans Service Officer) and Form AV-9 with your county tax assessor by June 1. The un-remarried surviving spouse of a qualifying Veteran retains the same exclusion. [1] [2] [3]
Property tax exclusions are administered by North Carolina county tax assessors, not by VA or VA Loan Network. This information is educational, not a tax assessment or mortgage approval.
North Carolina Veteran Property Tax Exclusion at a Glance
Choose an area to jump to the statute, calculations, application steps and important distinctions.
What Does North Carolina Offer Disabled Veterans?
A partial exclusion, not a full exemption, under NCGS 105-277.1C.
Who Qualifies for the NC Exclusion?
100% P&T rating, SAH recipients and un-remarried surviving spouses.
How Do You Apply and Meet the Deadline?
NCDVA-9 certification, then AV-9 to the county assessor by June 1.
How Much Could You Save in Real Dollars?
Your county’s effective rate determines the annual savings on a $45,000 exclusion.
How Does the Exclusion Affect Your VA Loan?
Taxes, escrow, DTI and buying power depend on verified reductions.
Is North Carolina Expanding the Exclusion?
A proposed bill would raise the exclusion, but it has not been enacted.
Do Surviving Spouses Keep the Exclusion?
Un-remarried surviving spouses retain the benefit on the same homestead.
Real-World North Carolina Veteran Scenarios
Fort Liberty buyer, Camp Lejeune owner, survivor and partial-rating paths.
What Mistakes Can Cost You the Exclusion?
Filing errors, missed deadlines and assumptions about pending legislation.
Frequently Asked Questions
Straight answers to common North Carolina Veteran searches.
Where Do Veterans File Near Military Bases?
County assessor contacts for Fort Liberty, Camp Lejeune and other installations.
Sources and Verification Method
Statute, NC DOR guidance, DMVA and federal rules.
North Carolina offers a partial property tax exclusion, not a full exemption. The first $45,000 of appraised value is excluded for qualifying 100% P&T disabled Veterans. Proposed legislation (S660) would raise the exclusion, but it has not been enacted as of November 2026. Budget for the current $45,000 benefit, not a projected increase.
What Does North Carolina Offer Disabled Veterans?
North Carolina provides a property tax exclusion under NCGS 105-277.1C that removes the first $45,000 of appraised value from the tax base on a qualifying Veteran’s permanent residence. This is a partial exclusion, not a full exemption. [1] [2]
What the Exclusion Covers
- Removes the first $45,000 of appraised value from all ad valorem property taxes (county, municipal, and special district)
- Applies to the dwelling and the land it sits on (up to one acre)
- Covers the Veteran’s permanent legal residence only
- The exclusion is applied before county, municipal, and special district taxes are calculated on the remaining assessed value
What It Does Not Cover
- Does not eliminate property taxes entirely on any home valued above $45,000
- Does not apply to rental properties, second homes, or investment properties
- Does not cover partial disability ratings between 10% and 90%
- Cannot be combined with the separate Elderly/Disabled Homestead Exclusion under NCGS 105-277.1
North Carolina’s effective property tax rates vary significantly by county, with a statewide average of 0.73%, below the national median of approximately 0.90%. Individual counties range from under 0.50% in some rural areas to over 1.00% in others (Cumberland County, for example, is 1.06%). For a broader comparison of state programs, see the Disabled Veteran Property Tax Calculator. [1] [11]
Who Qualifies for the NC Property Tax Exclusion?
The exclusion is limited to Veterans with the highest disability designations and their qualifying survivors. Partial disability ratings do not qualify for this specific benefit. [1] [2] [3]
| Eligibility Category | Qualifying Condition | Exclusion Amount |
|---|---|---|
| 100% P&T Veteran | Service-connected, permanent, and total disability certified by VA as of January 1 of the tax year | First $45,000 of appraised value |
| SAH Recipient | Receiving VA Specially Adapted Housing benefits under 38 U.S.C. 2101 as of January 1 of the tax year | First $45,000 of appraised value |
| Un-remarried surviving spouse | Surviving spouse of a Veteran who met either condition above, or died from a service-connected condition | First $45,000 of appraised value |
| Partial disability (10%-90%) | Does not qualify for this exclusion | Not eligible |
Additional Eligibility Requirements
- Discharge: Honorable discharge or discharge under honorable conditions from any branch of the U.S. Armed Forces
- Residency: The property must be the Veteran’s permanent legal residence
- Ownership: The Veteran must own and occupy the home as of January 1 of the tax year
- No income test: Unlike the separate Elderly/Disabled Homestead Exclusion, the disabled Veteran exclusion has no income cap
Co-owners and Married Couples
- A home owned and occupied by husband and wife receives the full $45,000 exclusion even if only one spouse qualifies
- Co-owners who are not spouses and are individually eligible each receive no more than $45,000
- The exclusion is limited to the co-owner’s proportionate ownership share
How Do You Apply and Meet the Deadline?
The application requires two forms and two agencies. Form NCDVA-9 is certified by a NC Veterans Service Officer, then filed with Form AV-9 at the county tax assessor’s office. [2] [3] [6]
Download the Certification of Disabled Veteran’s Property Tax Exclusion from the NC DOR forms page or pick it up from your county Veterans Service Office.
Take NCDVA-9 to a North Carolina Veterans Service Officer, who verifies your VA disability rating and certifies the form. The county tax assessor will not accept an uncertified form.
Fill out the Application for Property Tax Relief (Form AV-9), the standard homestead exclusion application used by all NC counties.
Bring certified NCDVA-9, completed AV-9, your VA disability rating letter, proof of homestead occupancy, and property deed to your county tax assessor’s office.
File by June 1 for the current tax year. Applications may be submitted during the listing period and must be accepted through June 1. Missing the deadline pushes the exclusion to the following tax year.
After the exclusion appears on your property tax bill, request an escrow re-analysis from your lender to lower your monthly payment.
Application Documents
- NCDVA-9, certified by a NC Veterans Service Officer
- AV-9 (Application for Property Tax Relief)
- VA disability rating letter or benefits summary letter confirming P&T status
- Proof of property ownership (deed or closing documents)
- Proof of primary-residence occupancy
- DD-214 or equivalent discharge documentation
After Initial Approval
North Carolina does not generally require annual refiling once the exclusion is approved. However, moving to a new property requires a new application with the new county tax assessor. A change in disability status that removes P&T designation ends eligibility.
The two-step certification is the step Veterans miss most often. Start the NCDVA-9 certification process weeks before you need to file, especially if you are buying a home and expect to close in April or May.
How Much Could You Save in Real Dollars?
The dollar value of the $45,000 exclusion depends on your county’s effective property tax rate. North Carolina assesses property at market value, and rates vary significantly across the state’s 100 counties. [1] [11]
| Home Value | County (Effective Rate) | Annual Tax Without Exclusion | Annual Savings ($45K Exclusion) | Monthly Savings |
|---|---|---|---|---|
| $200,000 | Onslow (0.68%) | $1,360 | $306 | $26 |
| $280,000 | Harnett (0.79%) | $2,212 | $356 | $30 |
| $350,000 | Cumberland (1.06%) | $3,710 | $477 | $40 |
| $450,000 | Wayne (0.76%) | $3,420 | $342 | $29 |
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The examples above use illustrative rates, not official county rate quotations. Your actual savings equal $45,000 multiplied by your county’s combined effective property tax rate. Because the exclusion is a flat dollar amount rather than a percentage, the savings are the same whether you own a $200,000 home or a $500,000 home in the same county. The savings are modest compared to states that offer full exemptions, but they compound over the life of a mortgage. [1] [4]
Why the Exclusion Feels Smaller in North Carolina
Partial vs. Full Exemption
States like Texas and Florida offer a full exemption, meaning 100% P&T disabled Veterans pay zero property tax on their primary residence. North Carolina removes only $45,000 from the assessed value. On a $300,000 home at the 0.73% statewide average, the NC exclusion saves $329 per year. A full exemption in the same scenario would save $2,190.
Below-Average Rates Help
North Carolina’s effective property tax rates are generally below the national average. That means the total tax bill is already lower than in many states. A Veteran near Fort Liberty paying Cumberland County’s 1.06% on a $280,000 home owes $2,968 per year before the exclusion. The $477 exclusion benefit reduces the effective bill to $2,491.
How Does the Exclusion Affect Your VA Loan?
A verified property tax reduction lowers monthly escrow, changes the lender’s housing-expense calculation, and can improve your debt-to-income ratio. It does not change the mortgage interest rate, erase principal, or guarantee an approval. [7] [8]
Before the Exclusion Is Applied
Illustrative $280,000 purchase near Fort Liberty at 6.5%. Principal and interest: $1,770. Homeowner insurance: $130. Property-tax escrow at Cumberland County’s 1.06%: $247.
The full tax amount is escrowed because the exclusion has not yet been approved.
After the $45,000 Exclusion Is Verified
Same home. Principal and interest: $1,770. Insurance: $130. Adjusted tax escrow: $208.
The $39 monthly reduction compounds over 30 years of ownership.
The federal VA funding-fee exemption is a separate benefit. Certain eligible disability-compensation recipients do not pay the VA funding fee. For an illustrative $280,000 first-use VA purchase with less than 5% down, 2.15% equals $6,020. That is a one-time fee difference, not an annual property-tax saving. Confirm the exemption with VA and lender records. See Are Disabled Veterans Exempt from the VA Funding Fee? and 2026 VA Funding Fee Calculator. [7]
DTI Impact
The $39 monthly tax reduction improves your debt-to-income ratio slightly. VA measures total monthly debt against gross income, and residual income often carries more weight than the ratio alone. A small PITI reduction can matter at the margin for borrowers near the DTI threshold, especially when paired with compensating factors.
Buying Power
Lower property taxes can increase how much home you qualify for. The actual increase depends on your rate, insurance, debts, residual income, and lender underwriting. For a realistic estimate, see How Much VA Loan Can I Afford. Review the full VA loan requirements to understand the complete qualification picture.
Combined Savings
A 100% P&T Veteran buying a $280,000 home in Cumberland County saves $477 per year from the exclusion plus avoids the $6,020 VA funding fee. The combined first-year benefit is approximately $6,497. The fee waiver is one-time; the tax savings recur annually. See the full list of VA loan benefits for additional cost advantages.
Is North Carolina Expanding the Exclusion?
Senate Bill 660, the “Honoring Sacrifice: NC Veterans Relief Act,” was filed in March 2025 and would significantly increase the exclusion in phases. As of November 2026, the bill remains in committee and has not been enacted. [9]
| Proposed Phase | Proposed Exclusion Amount | Status |
|---|---|---|
| Phase 1 (proposed July 2025) | First $75,000 of appraised value | Not enacted |
| Phase 2 (proposed July 2026) | First $125,000 of appraised value | Not enacted |
| Phase 3 (proposed July 2027) | Lesser of $500,000 or 100% of appraised value | Not enacted |
What S660 Would Change
- Phased increases to the exclusion amount over three years
- Prequalification for the homestead exclusion before property purchase
- Motor vehicle property tax exclusion for 100% disabled Veterans
- A $10 million Veterans’ Economic Development Incentive Grant Program
- Reimbursement mechanisms for local governments experiencing revenue losses
What to Do Now
File for the current $45,000 exclusion. If S660 or similar legislation is enacted in a future session, your existing application may serve as the basis for an expanded benefit. Do not delay filing based on a possible future increase.
For Veteran VA loan qualification, tell your lender about the verified $45,000 exclusion, not a projected one.
Do Surviving Spouses Keep the Exclusion?
Yes. The un-remarried surviving spouse of a qualifying disabled Veteran retains the $45,000 property tax exclusion under the same statute. The surviving spouse of a Veteran who died from a service-connected condition may also qualify even if the Veteran did not hold a P&T rating at the time of death. [1] [2]
| Situation | What the Statute Provides | Practical Next Step |
|---|---|---|
| Un-remarried surviving spouse, same homestead | Retains the full $45,000 exclusion on the same permanent residence | Notify the county tax assessor of the Veteran’s passing; supply death certificate and marriage documentation |
| Un-remarried surviving spouse, different home | May re-apply at the new county tax assessor’s office with updated documentation | File new NCDVA-9 and AV-9 at the new county |
| Surviving spouse who remarries | Remarriage permanently terminates the exclusion | No further action available under this statute |
| Veteran died from service-connected condition | Surviving spouse may qualify even without prior P&T rating if death is VA-certified as service-connected | Contact county VSO with VA certification of service-connected death |
For survivors considering a home purchase, the Certificate of Eligibility and property tax exclusion are separate benefits with independent eligibility rules. A VA mortgage benefit does not establish a state property tax exclusion. [1] [2]
Real-World North Carolina Veteran Scenarios
The following cases illustrate how the exclusion, the VA funding fee waiver, and the closing-cost picture interact for North Carolina Veterans. None is a guarantee of approval. [1] [7] [8]
100% P&T Near Fort Liberty
The Veteran’s VA letter confirms P&T status. They buy a $280,000 home in Cumberland County (1.06% effective rate per SmartAsset). The $45,000 exclusion saves $477 per year. The VA funding fee exemption saves an additional $6,020 at closing. The Veteran starts the NCDVA-9 certification process before closing to file by June 1.
Already Owns Near Camp Lejeune
A Veteran in Onslow County (0.68% effective rate per SmartAsset) has not yet filed for the exclusion on their $265,000 home. Filing NCDVA-9 and AV-9 saves $306 per year. They request an escrow re-analysis after the exclusion appears on the tax bill to lower their monthly VA mortgage payment by $26.
Un-remarried Spouse in Harnett County
The Veteran died from a service-connected condition. The surviving spouse files with the county tax assessor using the VA’s certification of service-connected death, the marriage certificate, and the death certificate. The $45,000 exclusion continues on the same home.
70% Disability Near Seymour Johnson AFB
This Veteran does not qualify for the disabled Veteran exclusion. However, if they are permanently disabled and their income falls below the annual threshold, they may qualify for the separate Elderly/Disabled Homestead Exclusion under NCGS 105-277.1, which provides a $25,000 or 50% exclusion. Contact the county tax assessor for details.
For service members comparing BAH rates with housing payments in North Carolina, use your verified tax bill rather than assuming an unapproved exclusion. Use the county’s actual rate, not a statewide average, when estimating your monthly PITI. [1] [8]
What Mistakes Can Cost You the Exclusion?
The biggest mistakes are assuming the pending bill is law, skipping the NCDVA-9 certification step, and missing the June 1 deadline. [1] [2] [3]
Before You File
- Confirm your VA letter says “permanent and total” specifically
- Get NCDVA-9 certified by a NC Veterans Service Officer before visiting the county tax assessor
- Bring all required documents, not just the VA letter
- File by June 1 for the current tax year
- Retain dated copies of every submitted form
- Confirm approval in writing from the county tax assessor
Before You Budget for a Home
- Use the current $45,000 exclusion, not the proposed increases from S660
- Look up your specific county’s effective tax rate, not the statewide average
- Separate annual tax savings from the one-time VA funding fee exemption
- Do not assume the exclusion will be approved before your first tax bill
- Get the lender’s final payment and escrow assumptions in writing
- A pending tax exemption does not change the lender’s underwriting decision
Where Do Veterans File Near Military Bases?
You file with your county tax assessor. North Carolina has 100 counties, each with its own tax assessor’s office that handles property tax exclusion applications. The county where the property is located controls the filing. [1] [11]
| Military Installation | County | Effective Rate | Annual Savings ($45K Exclusion) |
|---|---|---|---|
| Fort Liberty | Cumberland | 1.06% | $477 |
| Camp Lejeune / MCAS New River | Onslow | 0.68% | $306 |
| MCAS Cherry Point | Craven | 0.70% | $315 |
| Fort Liberty (off-post) | Harnett | 0.79% | $356 |
| Seymour Johnson AFB | Wayne | 0.76% | $342 |
| Coast Guard Base Elizabeth City | Pasquotank | 0.75% | $338 |
Finding Your County Tax Assessor
The NC Department of Revenue maintains a county-by-county directory of tax assessors and collectors. Contact your county’s tax assessor office directly for filing instructions, office hours, and document requirements specific to your county.
Finding Your Veterans Service Officer
Contact your county Veterans Service Officer through the NC Department of Military and Veterans Affairs. The VSO certifies Form NCDVA-9, which is a required step before you can file with the county tax assessor.
Frequently Asked Questions
Quick answers to the questions North Carolina Veterans ask when evaluating property tax relief in 2026.
Are 100% disabled Veterans exempt from property tax in North Carolina?
Not fully. North Carolina provides a partial exclusion of the first $45,000 of appraised value, not a full exemption. A 100% P&T Veteran still pays property tax on the assessed value above $45,000.
How much does the NC exclusion save per year?
The savings equal $45,000 multiplied by your county’s effective property tax rate. At the statewide average of 0.73%, the annual savings are $329. In Cumberland County (1.06%), the savings are $477. Your county rate determines the exact amount.
Does IU (Individual Unemployability) qualify for the NC exclusion?
It depends on whether the VA considers your IU rating to be permanent and total. The key is the “permanent and total” designation on your VA rating letter, not the specific percentage. Confirm your P&T status with your Veterans Service Officer before filing. You can use the VA disability calculator to review your combined rating.
Did the NC Veterans Relief Act increase the exclusion to $125,000?
No. Senate Bill 660 proposed phased increases but has not been enacted as of November 2026. The current exclusion remains $45,000 under NCGS 105-277.1C. Check the NC General Assembly bill tracker for updates.
Do partially disabled Veterans (10%-90%) qualify for any NC property tax relief?
Not under the disabled Veteran exclusion (NCGS 105-277.1C). However, North Carolina offers a separate Homestead Exclusion (NCGS 105-277.1) for residents who are permanently disabled regardless of Veteran status. That program excludes $25,000 or 50% of appraised value if your income is below the annual threshold. Contact your county tax assessor for details.
Where do I file for the NC disabled Veteran property tax exclusion?
File with your county tax assessor, not the state, not the VA, and not the NC Department of Revenue. You need Form NCDVA-9 (certified by a NC Veterans Service Officer) and Form AV-9. North Carolina has 100 counties, each with its own tax assessor’s office.
When is the filing deadline?
June 1 of the current tax year. Applications may be filed during the listing period and must be accepted through June 1. Missing the deadline pushes the exclusion to the next tax year with no retroactive benefit.
Can I combine the property tax exclusion with the VA funding fee exemption?
Yes. The NC property tax exclusion and the federal VA funding fee exemption are separate benefits administered by different agencies. A 100% P&T Veteran is typically eligible for both. The fee exemption is a one-time closing cost benefit; the tax exclusion is an annual recurring savings.
Does the exclusion affect my VA loan qualification?
It can. Lower property taxes mean a lower PITI payment, which may improve your DTI ratio and increase the purchase price you qualify for. The impact of the current $45,000 exclusion is modest (approximately $27 per month at the statewide average rate) but can matter at the margin.
Will my lender adjust my escrow after the exclusion is approved?
Not automatically. Once the exclusion appears on your property tax bill, request an escrow re-analysis from your mortgage servicer. Your monthly payment will decrease, and the servicer will refund any overage in the escrow account.
Does the exclusion apply to all property taxes or just county taxes?
The exclusion reduces the appraised value for all ad valorem property tax purposes. County, municipal, and special district taxes are all calculated on the reduced value.
Can I get the exclusion on a second home or rental property?
No. The exclusion applies only to your permanent legal residence. Rental properties, vacation homes, and investment properties do not qualify. The property must be owned and occupied by the qualifying Veteran or surviving spouse as of January 1 of the tax year.
Sources and Verification Method
This article relies on the current NC statute, NC DOR forms and guidance, the NC Department of Military and Veterans Affairs, SmartAsset county-level ACS tax data, VA.gov and the CFPB. The proposed S660 bill status was verified against the NC General Assembly tracker. [1] [2] [9] [11]
- North Carolina General Statutes 105-277.1C. Disabled Veteran property tax homestead exclusion: eligibility, $45,000 exclusion amount, qualifying owners, co-owner rules, surviving spouses.
- NC Department of Military and Veterans Affairs: Veterans Property Tax Relief. Eligibility overview, NCDVA-9 process, deadline, and benefit description.
- NC Department of Revenue: NCDVA-9 Certification Form. Form purpose, eligibility criteria keyed to January 1 of the taxable year, and VA documentation requirements.
- NC Department of Revenue: Property Tax Division. County tax rate information, assessment procedures, and county assessor directory.
- U.S. Department of Veterans Affairs: Disability Compensation. VA disability rating process, benefits summary letter, P&T determination.
- NC Department of Revenue: Property Tax Forms. Form AV-9 (Application for Property Tax Relief), NCDVA-9, and related homestead exclusion forms.
- U.S. Department of Veterans Affairs: VA Funding Fee. 2.15% first-use purchase rate, disability-related exemptions, refund provisions.
- Consumer Financial Protection Bureau: Mortgage Servicing FAQs. Escrow-account analysis timing, shortage and surplus definitions.
- NC General Assembly: Senate Bill 660. “Honoring Sacrifice: NC Veterans Relief Act” filed March 25, 2025; referred to committee March 26, 2025; not enacted.
- North Carolina General Statutes 105-277.1. Elderly/Disabled Homestead Exclusion: $25,000 or 50% exclusion, income threshold, separate from disabled Veteran program.
- SmartAsset: North Carolina Property Tax Calculator. Statewide average effective rate 0.73%. County rates: Cumberland 1.06%, Onslow 0.68%, Craven 0.70%, Harnett 0.79%, Wayne 0.76%, Pasquotank 0.75%. Based on American Community Survey data.
What We Verified
Current statutory exclusion amount, NCDVA-9 certification requirement, AV-9 filing, June 1 deadline, co-owner rules, surviving spouse eligibility, S660 bill status (not enacted), separate elderly/disabled program, VA funding fee rate and exemptions.
What Must Be Checked Locally
Specific county effective tax rate, property assessment, actual tax bill, county VSO availability, processing timeline, and any local variations in filing procedures. A statewide article cannot verify a particular parcel’s tax status.
Verify Your Rating, Then File Before June 1.
Confirm your VA letter says “permanent and total,” get NCDVA-9 certified by your county Veterans Service Officer, and file with your county tax assessor. Then ask a VA loan specialist to factor the verified exclusion into your housing payment estimate.