These Counties in North Carolina Have Senior Tax Exemption in 2025

Across North Carolina, many seniors and individuals with permanent disabilities qualify for a meaningful property tax exemption in 2025. These exclusions serve as critical relief for fixed‑income homeowners, helping them remain in their homes across a wide range of cities and towns across the Tar Heel State. In this article, you’ll learn which counties currently offer the state’s Elderly or Disabled Homestead Exclusion program, how it works, who qualifies, and why it matters—by county. We’ll focus on counties that actively implement the 2025 exemption rule: Davidson County, Lincoln County, Wilson County, Dare County, Mecklenburg County, and more. Plus, you’ll see city‑level context, demographic insights, and helpful program details.

Understanding the 2025 Senior Tax Exemption in North Carolina

In 2025, North Carolina’s law allows qualifying homeowners who are at least 65 years old or totally and permanently disabled to exclude from property taxes the greater of twenty‑five thousand dollars or fifty percent of the appraised value of their permanent residence. Income must not exceed $37,900 (based on prior calendar year), and applicants must be North Carolina residents living in the home as of January 1 of the taxable year. The exemption is available across many counties if they administer it locally; application deadlines and documentation requirements vary but typically must be filed by June 1, 2025. This program does not require a yearly re‑application unless circumstances change. A companion program, the Circuit Breaker tax deferment, also caps annual taxes at a percentage of income for eligible owners. For clarity, this article focuses on counties actively offering the elderly/disabled homestead exclusion in 2025.

Davidson County: Lexington and Beyond

Davidson County includes cities such as Lexington, Thomasville, and High Point (partly). In 2025, seniors or totally disabled residents with income under $37,900 qualify for the homestead exemption: they can exclude the greater of $25,000 or 50% of their home’s assessed value from taxes. Davidson County adopts the state guidelines fully, and applicants must submit proof of residency, age or disability status, income documentation (federal return, Social Security benefits, 1099s), and disability certification if applicable. Applications typically must be returned to the tax assessor’s office before the June 1 deadline.

Lincoln County: Lincolnton and Surrounding Communities

Lincoln County, home to Lincolnton and stretching into parts of the Charlotte metro, implements the statewide homestead exemption rules as of January 1, 2025. Serving citizens aged 65+, or permanently disabled, with income capped at $37,900, Lincoln County offers the same exclusion: $25,000 or half the appraised value. The application process requires income documentation from the previous calendar year, residency verification, and proof of disability if needed. The county tax department urges clients to submit by June 1 to secure the benefit.

Wilson County: City of Wilson and Outlying Areas

In Wilson County, including the city of Wilson, the Elderly or Disabled Homestead Exclusion is fully implemented for 2025 with identical qualification limits. Residents aged 65 or disabled earning up to $37,900 can eliminate $25,000 or 50% of assessed value from their taxable base. The tax office defines documentary requirements such as AV‑9 and AV‑9A forms, federal income tax return or evidence of non‑filing, and disability certification when appropriate. The county also highlights the difference between this program and the circuit‑breaker deferment alternative, depending on income and property value.

Dare County: Coastal Relief for Outer Banks Seniors

Dare County, covering towns like Manteo, Nags Head, and Kill Devil Hills along the Outer Banks, offers the same state‑level homestead exclusion in 2025. Here, seniors and disabled homeowners earning under $37,900 are eligible to exclude the greater of $25,000 or half of their primary residence’s assessed value. Given the high property values in coastal Dare County, this relief can significantly reduce tax burden for retired residents on fixed incomes. Income documentation and proof of residency in the home as of January 1 are required. The application also typically closes by early June.

Mecklenburg County: Charlotte and Surrounding Suburbs

Mecklenburg County, anchored by Charlotte, also participates fully in the Elderly or Disabled Homestead Exclusion program in 2025. Though Mecklenburg doesn’t always advertise the program prominently, it follows state law: homeowners aged 65+ or permanently disabled, with income under $37,900, may exclude $25,000 or 50% of their home’s appraised value. In high‑value areas such as South Charlotte or Huntersville, such exemptions can equate to thousands in savings. Applicants must submit prior‑year income records, proof of disability when relevant, and confirm residency and ownership status by January 1.

Other Counties Implementing the Exemption in 2025

Forsyth County (Winston‑Salem area)

Forsyth County, including Winston‑Salem, applies the same program with the same income threshold: $37,900 in prior year income, and the same exclusion amount. The tax office offers clear application checklists and AV‑9 forms, and requires delivery by June 1, 2025. This program is straightforward and widely known among seniors in Forsyth.

Mecklenburg supporting programs

Mecklenburg also administers the related Circuit Breaker deferment option, where annual property taxes can be capped at 4% or 5% of income depending on whether income is under or above the threshold, with deferred portion accruing until property transfer or death. Nonetheless, many seniors opt for the homestead exclusion instead, because it reduces the taxable home value directly without creating deferred tax liens.

How the Program Works: Key Requirements and Benefits

Eligibility criteria

Age 65 or older, or totally and permanently disabled as of January 1 of the tax year.
Annual income must not exceed $37,900, based on prior calendar year.
Residency: must be a North Carolina resident and occupant of the home.
Ownership: applicant’s name must appear on the deed/title as of January 1.

Financial benefit

Exempt the greater of $25,000 or 50% of appraised value.
For example, a home assessed at $200,000 would have $100,000 excluded.
In areas with higher assessed values (Charlotte suburbs, Outer Banks), this scales to significant tax savings.

Application process

Complete county application (AV‑9 form), attach federal return or proof of non‑filing.
Provide Social Security benefit statement, annuities, pensions, dividends, IRA distributions, etc.
If under 65 but disabled, include Form AV‑9A from a North Carolina‑licensed physician.
Submit by June 1, 2025 to county tax assessor.

Reapplication and ongoing eligibility

No need to reapply annually if income and residency remain same.
Must notify tax office if income rises above limit, disability changes, residence sold or moved.
Disabled applicants must notify if disability no longer qualifies.

Why These Counties Matter: Demographics and Retirement Trends

North Carolina is a magnet for retirees. With a flat 4.5% state income tax levied on most retirement income and no inheritance or estate tax, it’s appealing to older residents. Property tax relief programs add to that appeal. Counties like Mecklenburg (Charlotte), Forsyth (Winston‑Salem), etc., host substantial retiree populations—many aged 65 and older seeking affordable living. Coastal counties such as Dare offer scenic retirement, while inland counties like Davidson, Lincoln and Wilson provide quieter, lower‑cost lifestyles.

Specific demographic patterns:

Mecklenburg County ranks among the fastest‑growing metro areas in the state, attracting retirees and families alike.
Forsyth County’s Winston‑Salem area hosts a large senior cohort, many benefiting from social services and property tax relief.
Coastal Dare County features seasonal homeowners and retirees; property costs can be high, so exemption benefits matter.
Davidson, Wilson, Lincoln counties provide small‑town or suburban environments with modest home values; the exemption remains a highly useful relief tool for fixed‑income seniors.

Across all these counties, individuals over 65 represent a growing share of the population, and many depend on Social Security, pensions, or retirement income—all recognized under the state’s income limits for exemption.

Comparing Homestead Exclusion to Circuit Breaker

While the exclusion reduces taxable value, the Circuit Breaker program caps the actual tax owed to a percentage of income (4% if income is below eligibility limit, 5% if between 100% and 150%). This cap can defer taxes beyond those limits for future payment. Some counties allow both options, and seniors must weigh which yields greater savings, especially in higher‑value areas.

In Wilson County, a sample illustrates:

For a household with $30,000 income and a $150,000 home, exclusion reduces tax value and yields tax due lower than circuit‑breaker.
For higher home values or higher income (still under eligibility), circuit breaker may defer more tax but comes with liens.

Most residents with modest property values benefit more from the straightforward exclusion.

Step-by-Step for Seniors in 2025

If you’re a homeowner in one of these counties, here’s what to do:

Check your age or disability status as of January 1, 2025.
Gather income documentation from 2024: Social Security, pensions, dividends, interest, etc.
Download or request county’s AV‑9 form, and if needed AV‑9A disability certification.
Submit the completed application and documentation to your county tax assessor by June 1, 2025.
Keep copies of all paperwork; no need to reapply unless your status changes.
If your income is rising or your residence changes, inform the assessor promptly.

Spotlight on Communities

Lexington, in Davidson County, is a medium‑sized city known for barbecue and furniture heritage. Many older homeowners benefit from the $25,000 or 50% exemption.
Lincolnton, in Lincoln County near Charlotte, sees retirees who took former factory jobs get steady home ownership—this exemption helps them stay.
Wilson, in Wilson County, merges small‑town charm with medical services. Seniors here routinely apply and receive the exemption.
Outer Banks towns like Nags Head and Manteo are oasis communities. Retirees with vacation‑style homes use the relief to offset coastal property taxes.
Charlotte suburbs in Mecklenburg County—like Matthews, Huntersville, Cornelius—see many households with older adults enjoying the benefit in higher‑value markets.

Broader Impact and Future Developments

Legislation such as House Bill 59 and Senate Bill 349 aim to expand senior tax relief by raising income limits for married couples (up to roughly $43,500) and making the circuit breaker more flexible. If enacted, these changes could reduce the “marriage penalty” and ease eligibility for some dual‑income households. Counties are watching these developments closely, and many seniors may qualify for even larger relief in the near future.

Meanwhile, statewide programs remain stable for 2025. Counties listed here are representative of local governments that fully implement the 2025 criteria.

Final Thoughts

North Carolina’s Elderly or Disabled Homestead Exclusion offers tangible benefit in 2025 to homeowners aged 65+ or permanently disabled, with income under $37,900. Counties including Davidson, Lincoln, Wilson, Dare, Mecklenburg, Forsyth and others actively administer the program. The key benefit is straightforward: remove $25,000 or 50% of appraised value from taxable base, with no annual re‑application required. For seniors on fixed incomes, this can provide critical relief and help keep them in their homes. If you live in one of these counties or plan to move to a retirement‑friendly part of North Carolina, exploring this exemption should be high priority before the June 1, 2025 deadline. With expanding legislative support on the horizon, North Carolina continues as one of the more retiree‑friendly states in the Southeast.