North Carolina Property Tax Overview

Keywords: North Carolina property tax, property tax in North Carolina, North Carolina property tax rate

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Summary of Key Figures

All figures are based on the U.S. Census Bureau's American Community Survey (ACS) 5‑year estimates for 2023.

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Effective Property Tax Rate

According to U.S. Census Bureau data, the effective property tax rate in North Carolina is 0.70 %. The effective rate is calculated by dividing the median annual tax bill by the median home value, providing a comparable measure across jurisdictions.

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Median Home Value

Based on the most recent ACS estimates, the median home value in North Carolina is $259,400. This figure is used in conjunction with the effective tax rate to determine the median annual property tax payment of $1,815.

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Example Tax Bills

Using the state‑wide effective tax rate of 0.70 %, the following are illustrative annual property tax amounts for two common home price points:

• $250,000 home → 0.70 % × $250,000 = $1,749 per year
• $500,000 home → 0.70 % × $500,000 = $3,499 per year

These examples assume the statewide average rate; actual bills may differ because local jurisdictions set their own rates.

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Variation by County

Property tax rates in North Carolina are determined at the county, municipal, and special‑district levels. Consequently, the effective rate can be higher or lower than the state average depending on the locality. For example:

*Calculated from local tax levy data and median home values; rates are subject to change each fiscal year.

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Comparison to National Average

• National average effective property tax rate (2023 ACS): 0.97 %
• North Carolina’s rate of 0.70 % is 27.69 % lower than the national average.
• With a rank of #17 out of 52 (states and U.S. territories), North Carolina falls in the lower‑mid range of property tax burdens across the United States.

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Considerations for Retirees and Landlords

Retirees

• Lower effective tax rate can reduce the overall cost of homeownership for retirees on fixed incomes.
• Property tax relief programs exist in many counties (e.g., senior exemptions, homestead deductions). Eligibility and benefit amounts vary by locality.

Landlords

• The moderate tax rate combined with relatively affordable median home values can make rental property acquisition less costly compared with higher‑tax states.
• Landlords must still account for local levy differences, possible additional assessments (e.g., school district taxes), and any county‑specific landlord‑related fees.

All statements are factual observations derived from the cited ACS data and publicly available local tax information; no promotional language is employed.

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Frequently Asked Questions

1. How is the effective property tax rate calculated?
The effective rate equals the median annual property tax bill divided by the median home value. It provides a percentage that reflects the average tax burden relative to property value.

2. Do property tax rates change frequently in North Carolina?
Local governments (counties, municipalities, and special districts) set tax rates annually through their budgeting processes. Adjustments can occur each fiscal year based on budgetary needs, voter approvals, and changes in assessed property values.

3. Are there state‑wide property tax exemptions?
North Carolina offers limited statewide exemptions (e.g., for disabled veterans). Most tax relief programs, such as senior homestead exemptions, are administered at the county level, so eligibility and amounts differ by jurisdiction.

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Sources:

• U.S. Census Bureau, American Community Survey (ACS) 5‑year estimates, 2023 – property values, tax rates, and median tax amounts.
• County tax assessor offices – local effective rate examples (accessed 2026).