Disabled Veteran Property Tax Exemption in North Carolina (2026)

Last reviewed August 26, 2026. Every figure, form and deadline on this page is re-checked against the state’s own government sources once a quarter, and the date above is updated when we do it.

The disabled veteran property tax exclusion in North Carolina shields the first $45,000 of your home’s appraised value from property tax if you have a permanent and total service-connected disability rating. North Carolina calls it the disabled veteran homestead exclusion, under G.S. 105-277.1C. It has no income limit, unlike the state’s regular elderly or disabled exclusion, but it also has no partial-rating tier. You claim it on Form AV-9 with Form NCDVA-9 attached, filed with your county tax office.

The $45,000 figure is fixed in the statute itself, not indexed for inflation the way some states’ veteran exemptions are. It has not changed since it was last set by the General Assembly, so you will not see the kind of year-to-year creep that shows up in states like Ohio.

How much is the North Carolina exclusion worth?

Program	What it excludes	Income limit (2026)
Disabled veteran exclusion, G.S. 105-277.1C	$45,000 of appraised value	None
Elderly or disabled exclusion, G.S. 105-277.1 (age 65+ or totally and permanently disabled, not veteran-specific)	Greater of $25,000 or 50% of appraised value	$38,800
Property tax homestead circuit breaker, G.S. 105-277.1B (age 65+ or disabled, defers tax above a percentage of income)	Defers tax above an income-based cap, does not exclude value	$58,200

North Carolina does not scale the disabled veteran exclusion by disability percentage the way Texas does. There is one tier: 100 percent permanent and total, or specially adapted housing benefits under 38 U.S.C. 2101. If you are rated below that, this exclusion is not available to you, though you may still qualify for the elderly or disabled exclusion above if you meet its age or disability test and stay under the income limit.

A qualifying owner who takes the disabled veteran exclusion cannot also take the elderly or disabled exclusion or the circuit breaker on the same property. You pick one.

The exclusion works as a reduction in taxable value, not a check in the mail. A home appraised at $200,000 gets billed as if it were worth $155,000. What that is worth in dollars depends on your local tax rate, so the only honest answer is a local one from your county tax office.

The $45,000 figure is written directly into the statute and has not moved in recent years. That is different from a state like Ohio, where the veteran homestead amount is indexed and climbs most years. If you see a source quoting a different number for North Carolina, check the date. The current statute text, last amended in the sessions cited at the bottom of G.S. 105-277.1C, still reads $45,000.

Who qualifies in North Carolina?

To claim the disabled veteran exclusion in North Carolina you must meet all of these:

• Be a veteran of any branch of the U.S. Armed Forces, honorably discharged or discharged under honorable conditions, or the never-remarried surviving spouse of one.
• Have a service-connected, permanent, and total disability rating certified by the VA or another federal agency, or have received benefits for specially adapted housing under 38 U.S.C. 2101. A surviving spouse can also qualify if the veteran died as a result of a service-connected condition.
• Own and occupy the home as your permanent residence as of January 1 of the tax year you are applying for.
• Be a North Carolina resident.

The exclusion applies to one permanent residence. If a husband and wife own the home together, the full $45,000 exclusion applies even if only one of them meets the requirements. Co-owners who are not married to each other must each apply separately, and there are proportionate-share rules in the statute for splitting the benefit among multiple owners.

No income test, no percentage tier

North Carolina’s regular elderly or disabled exclusion caps income at $38,800 for the 2026 tax year, adjusted annually by Social Security’s cost-of-living formula. The disabled veteran exclusion is not subject to that limit. It is also an all-or-nothing benefit: there is no reduced version for a 70 percent or 90 percent rating. You need the full 100 percent permanent and total determination, or the specially adapted housing benefit.

Surviving spouses

A never-remarried surviving spouse of a qualifying disabled veteran can claim the same $45,000 exclusion, including where the veteran died as a result of a service-connected condition even if the veteran was never rated 100 percent while alive. Bring the VA’s certification of that determination when you apply.

Can the exclusion be used before closing?

In North Carolina, no. Not for the year you buy, unless you already owned and occupied the home on January 1 of that tax year. North Carolina ties eligibility to ownership and occupancy as a permanent residence on that date. Buy the home in March 2026 and the earliest tax year you can claim the exclusion for is 2027, applied for by June 1, 2027.

Four states put a pre-purchase determination in the statute. North Carolina is not one of them

State rule. Four states let a qualifying veteran get something in writing from the taxing authority before they own the home:

• Virginia: file the normal exemption paperwork plus documentation of the purchase agreement and the commissioner of the revenue must process it and send an approval or denial letter, with the exemption amount, within 20 business days. Va. Code § 58.1-3219.6(B). The exemption itself takes effect only after you become the owner.
• Maryland: you may apply for a specific dwelling you intend to purchase, and the Department of Assessments and Taxation must send a preliminary approval or denial, with the amount, within 15 business days. Md. Code, Tax-Property § 7-208(d)(5). No second application is needed once you own it.
• Utah: a qualifying disabled veteran claimant may apply before owning the residence with a real estate purchase contract, filed in the county where the home sits, and the county must send a receipt with preliminary approval or denial and the calculated amount within 15 business days. Utah Code § 59-2a-502(5).
• Alabama: for closings on or after October 1, 2026, the tax assessing official issues a tentative certificate of permanent and total disability before purchase, within 20 days, and the statute says a settlement agent or loan closing officer may not consider the homestead ad valorem taxes when calculating debt-to-income once you hand over that certificate. Ala. Code § 40-9-21.3.

One correction worth having, because it gets repeated a lot: outside of Alabama these laws bind the county or the state tax office, not your lender. They force the taxing authority to answer you in writing before closing. They do not order a lender to waive or exclude the tax. Alabama is the only one of the four that reaches into the loan file itself. North Carolina has a bill that would add a prequalification process, House Bill 94, which passed the House 112 to 0 in May 2025 and has sat in Senate Rules since. It is not law, so do not plan around it.

In North Carolina it is a lender decision, so shop it

Lender overlay and market practice. There is no North Carolina statute telling the taxing authority to pre-approve you before you own the home, so whether this benefit helps you qualify comes down to lender policy. Here is what that looks like in practice, from lender guidance we collected directly in August 2026:

• Some lenders will use the reduced tax figure before closing, and some will not. One wholesale lender told us plainly it will consider a veteran real estate tax exemption and a reduced property tax number in the qualifying payment, as long as underwriting gets the local exemption rules and proof you meet them. If the documentation is short, underwriting uses the full tax amount instead. Another wholesaler checks it state by state and county by county on every single closing. If your lender says no, that is not the final answer on the benefit. It is that lender’s answer. Ask another one.
• Every lender will require proof of eligibility if the lower tax is doing work in your file. If the reduced tax is what lowers your debt ratio or raises your residual income, expect to document it: your VA rating decision or award letter showing the qualifying disability, the taxing authority’s own published exemption rules, and usually the completed exemption application. One lender’s VA guide requires proof of 100 percent disability from VA plus a copy of the completed county application for property tax exemption, and where the application has to be notarized it takes an unsigned copy up front and conditions it to be signed at closing.

Lender overlays apply everywhere. State permission is not lender permission. One large investor allows the anticipated reduced tax for qualifying only for primary residences in California, Florida, Maryland, Texas, Utah and Virginia, and only with proof the veteran applied to the taxing authority before the note date. North Carolina is not on that list.

Practically, ask your loan officer two questions before you write an offer: will you use a reduced tax figure to qualify me, and will you waive the tax escrow. Different lenders give different answers on the same file, and that is normal, not a mistake.

What we can do instead: waive the escrow

If the exemption cannot be counted yet, the fallback is to not escrow the taxes at all, so your monthly housing expense is not carrying twelve months of a tax bill that is about to shrink. VA does not require escrows, so this is a lender and investor decision, and many will allow it on a strong file. There are lenders that will waive the tax escrow on a VA loan even when the property taxes have not been waived yet, so this is a real option and not a rare favor. Some will waive it with no restrictions at all, others want the eligibility proof and the correct paperwork in the file first. Waiving escrow does not require the taxing authority to approve anything, which is why it is usually the easier ask of the two. Understand the tradeoff: with no escrow account, you pay the taxing authority directly and you are on your own for those tax bills until the exemption is actually approved, and approval can take a while. Budget for it and pay the bill on time; a delinquent tax bill on a home you just bought is an expensive way to save a few dollars of monthly payment.

One more VA rule to know, because it runs the other way. On estimating taxes, Chapter 4 says “If taxes are expected to increase, use the increased amount.” There is no matching VA instruction that lets an underwriter write down your taxes, which is why the reduction is always a lender option and never a VA entitlement. The Chapter 4 text is here if you want to read it.

Plan for the gap between closing and approval

These applications take a while to process, and the taxing authority’s calendar does not wait for your loan. A tax bill can come due between your closing date and the day your exemption is approved, and you are the owner, so that bill is yours. That can include taxes attributable to the period the prior owner held the home. One lender’s VA guide makes it explicit and requires a signed letter of explanation from the veteran borrower stating they are solely responsible for the property taxes owed for the prior owner. Keep the money set aside and do not assume the first bill will be reduced, especially if you waived escrow and North Carolina is billing you directly.

How to apply in North Carolina, step by step

1. Get Form AV-9, Application for Property Tax Relief, from the North Carolina Department of Revenue (PDF download) or your county tax office. The same form covers the elderly or disabled exclusion, the circuit breaker, and the disabled veteran exclusion, so fill out Part 3 for the veteran version.
2. Get Form NCDVA-9, the Certification of Disabled Veteran’s Affairs for Property Tax Exclusion, from the Department of Revenue (PDF download). This form has to be certified by a county or state veterans service officer before you submit it, not signed by you alone. Find your local officer through the NC Department of Military and Veterans Affairs benefits and claims directory.
3. Attach your supporting documents. A copy of your VA disability certification showing the 100 percent permanent and total rating, or your specially adapted housing award letter under 38 U.S.C. 2101. Surviving spouses attach the VA’s certification that the veteran’s death was service-connected, where that is the basis for the claim.
4. File both forms with your county tax office, the office that assesses property where your home is. Every county’s assessor contact information is on the NCDOR property tax counties directory, which links each county assessor’s page and also has a statewide printable list of county assessor addresses and phone numbers (PDF download).
5. Watch the deadline. File during the regular listing period in January if you can. Your county must still accept the application if it comes in on or before June 1 of the tax year you are claiming the exclusion for.

Once you are approved, you generally do not have to refile every year unless your county requests it or your situation changes, such as moving to a new home.

Can you get a refund of prior year taxes?

North Carolina’s statute does not give the disabled veteran exclusion a separate prior-year refund mechanism the way some states do for a late-filed homestead claim. The application deadline itself is already extended, through June 1 of the tax year you want the exclusion for, which functions as your practical grace period within that year.

If you believe you were entitled to the exclusion in a year that has already closed and were not given it, ask your county tax office or board of equalization and review directly. North Carolina property tax appeals and corrections run through the county board of equalization and review and, beyond that, the North Carolina Property Tax Commission. Your county tax office can tell you what is still open for your situation and what documentation they need.

Do not wait to apply for the current tax year hoping to fix it retroactively later. Get the AV-9 and NCDVA-9 in by June 1 of the year you want the benefit for.

Other North Carolina programs for disabled veterans

The property tax exclusion is the big one for homeowners, but it is not the only North Carolina program.

• Elderly or disabled homestead exclusion (state, non-veteran-specific). Excludes the greater of $25,000 or 50 percent of appraised value for owners 65 or older or totally and permanently disabled, capped at $38,800 of income for the 2026 tax year. A veteran under 100 percent who is 65 or older, or disabled on non-service-connected grounds, may still qualify for this one if income allows. N.C. G.S. 105-277.1.
• Property tax homestead circuit breaker (state, non-veteran-specific). Defers the portion of tax above a set percentage of income for owners 65 or older or totally and permanently disabled who have owned and occupied the home at least five years, capped at $58,200 of income for 2026. This is a deferral, not an exclusion, and deferred taxes plus interest become a lien if the home is later sold or the owner no longer qualifies. N.C. G.S. 105-277.1B.
• Military retirement and Survivor Benefit Plan income tax deduction (state). North Carolina lets qualifying veterans with 20 years of service, or who were medically retired, deduct their military retirement pay from state taxable income starting with tax year 2021, and Survivor Benefit Plan recipients can deduct those payments too. NCDOR notice on the military retirement deduction.
• County veterans service offices (county). Every North Carolina county has a veterans service officer who can help with VA claims, including the disability certification you need for this exclusion, at no cost. Start with the NC Department of Military and Veterans Affairs benefits and claims page, which lists state veterans service centers and links county offices.
• Adapting a home for a service-connected disability (federal). The VA’s Specially Adapted Housing and Special Home Adaptation grants pay to build or modify a home for certain service-connected disabilities, and HISA grants cover smaller medical improvements. Those are federal VA benefits, not North Carolina programs, and they can be used with a VA loan. Receiving specially adapted housing benefits under 38 U.S.C. 2101 is also one of the two ways to qualify for this exclusion.

North Carolina disabled veteran property tax FAQs

How much is North Carolina’s disabled veteran property tax exclusion worth?

It excludes the first $45,000 of your home’s appraised value from property tax. That amount is fixed in the statute, G.S. 105-277.1C, and does not adjust for inflation, unlike some states’ veteran exemptions.

Is North Carolina’s exclusion scaled by disability percentage?

No. North Carolina does not have a tiered exclusion for partial ratings. You either qualify at the full $45,000 by meeting the 100 percent permanent and total standard, or you do not get this exclusion at all. A veteran under 100 percent may still qualify for the separate elderly or disabled homestead exclusion if age or income requirements are met.

Do I need a 100 percent rating in North Carolina?

Yes, permanent and total, or you must be receiving benefits for specially adapted housing under 38 U.S.C. 2101. There is no partial-rating version of this specific exclusion.

Is North Carolina’s exclusion income tested?

No. Unlike North Carolina’s elderly or disabled homestead exclusion, which caps income at $38,800 for tax year 2026, the disabled veteran exclusion has no income limit.

What is the filing deadline in North Carolina?

Applications are normally filed during the regular January listing period, but your county must accept a late application through June 1 of the year you want the exclusion for. File Form AV-9 with Form NCDVA-9 attached.

Can I use the exclusion on a house I am buying right now?

Only if you already owned and occupied it on January 1 of that tax year. A home you buy partway through the year does not get the exclusion until the following tax year, when you file by the next June 1.

Can a surviving spouse keep the North Carolina exclusion?

Yes, if the spouse has not remarried and the veteran had a permanent and total service-connected disability, received specially adapted housing benefits, or died as a result of a service-connected condition.

Where to go next

• Disabled Veteran Property Tax Exemption Guide, every state’s exemption, form and deadline in one directory
• The complete guide to VA home loans
• Bad credit VA loans in North Carolina
• Property tax discounts for veterans on VA disability, the national overview
• Funding Fee Waivers and Refunds Guide, the fee is waived outright at a 10 percent rating or higher, and can be refunded if you already paid it
• NCDOR directory of every North Carolina county assessor
• N.C. General Statutes 105-277.1C, the statute that creates the exclusion