This program is available instead of the Homestead Exclusion for elderly or totally and permanently disabled homeowners whose income does not exceed 150% of the income eligibility limit* for the Homestead Exclusion.

As of January 1st of the year for which the deferral is claimed, the applicant must:

• Meet the requirements as stated in the Homestead Exclusion for age or disability.
• Must have owned and occupied the property as the owner's permanent legal residence for five (5) years.
• Must be a North Carolina resident.
• For married applicants living with their spouse, include the income from both spouses, even though the property is not in both names.

 

Other Requirements:

 

• All owners of the property must apply and elect to defer the applicable portion of their taxes.
• A new application is required annually.

 

Unlike the exclusion, which reduces taxes owed (by excluding part of the value on which the tax is based), deferral postpones (defers) paying a portion of taxes due in one year to some future time, such as: sale of the property, the property no longer being the applicant's primary residence or the death of the applicant with no surviving spouse.