North Carolina General Statutes allow for certain types of property to be exempt from taxation if they meet the requirements specified by the statutes. Any owner claiming this relief, with the exception of the U.S. Government, the State of North Carolina, and the counties and municipalities of the State, must file an application for exemption.
To request an application for exemption, please call our office at 919-856-5400. The completed application must be filed with the Revenue Department during the regular listing period, which is from January 1 through January 31 each year. Late applications may be considered for good cause through the last day of the calendar year in which the tax is levied. A late application for exemption received after the calendar year ends will not be accepted and cannot be considered for approval or denial for any reason or circumstance.
Examples of property exempt from taxation are:
- Real and personal property used for religious purposes (NCGS 105-278.3)
- Real and personal property used for educational purposes (NCGS 105-278.4)
- Real and personal property of religious educational assemblies used for religious and educational purposes (NCGS 105-278.4)
- Real and personal property used for charitable purposes (NCGS 105-278.6)
- Real and personal property used for educational, scientific, literary or charitable purposes (NCGS 105-278.7)
- Real and personal property used for charitable hospital purposes (NCGS 105-278.8)
Military service members, who are currently on active duty in North Carolina with a home of record in another state, may not be subject to personal property and registered motor vehicle taxes in North Carolina.
For exemption on personal property tax bills, such as mobile homes, boats, and unlicensed vehicles, return the tax bill along with a copy of the Leave & Earnings Statement (LES) that was issued closest to the January 1 prior to the date of the tax bill.
To receive an exemption on a registered motor vehicle bill, return the tax bill along with a copy of the Leave & Earnings Statement (LES) that was issued during the same time period the vehicle was registered in North Carolina. Please note that the active duty service member's name must appear on the title of the vehicle.
Military spouses may also qualify for exemption on personal property and registered motor vehicles if their home of record is the same as the service member's. To receive an exemption, return a copy of the bill along with the appropriate LES as stated above. In addition, military spouses must provide a copy of their current military I.D. card and a copy of one of the following out of state items: driver's license, voter registration card or most current state tax return.
Disabled Veteran Exemption
A motor vehicle owned by a disabled veteran may be exempt from taxation if the following criteria are met:
- The vehicle is altered with special equipment to accommodate a service-connected disability
- The alteration was completed at the expense of the U.S. Government through a grant under Title 38
A disabled veteran may also qualify for a tax relief exclusion on their primary residence. Please view the Tax Relief Programs portion of this website for additional information.