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1. What is the Property Tax homestead Circuit Breaker Program?

The Circuit Breaker Tax Deferment program limits the amount of taxes qualified North Carolinians, who are age 65 and over or totally and permanently disabled on January 1, would pay on their permanent residence (homestead). Taxes are limited to a percentage of the taxpayer’s income as shown below. Taxes above that percentage are deferred until there is a disqualifying event that triggers the repayment of the deferred taxes.

View the 

tax limitations for 2023.

2. What are the qualifications for the Circuit Breaker Tax Deferment Program?

You may be qualified for the Circuit Breaker Homestead Tax Deferment Program if you are an Iredell County Resident at least 65 years of age on January 1st of the tax year in which you wish to claim the exemption. Also, if you and your spouse’s income did not exceed $50,700 for the year prior to which an application is made and you have owned and occupied your current permanent legal residence for 5 or more years.

If these qualifications do not fit, you may also qualify if you are certified totally and permanently disabled by a licensed physician or governmental agency and you and your spouse’s income did not exceed $50,700 for the year prior to which an application is made. You must also have owned and occupied your current permanent legal residence in Iredell County for 5 or more years.

If the property is owned by multiple owners (other than husband and wife) every owner must meet the qualifications mentioned.

3. How are deferred taxes calculated and are they a lien on my property?

Deferred taxes are the amount of taxes on one’s Homestead / Permanent Residence over and above the limitation (either 4% or 5% of one’s income) granted by the program. Unlike some other tax relief programs, deferred taxes are a lien on the property. The Tax Department keeps a record of the deferred taxes until a disqualifying event triggers the repayment of the deferred taxes.

4. What would trigger the repayment of the deferred taxes?

A disqualifying event would be death of the owner, transfer of the property or the owner ceases to use the property as a permanent residence.

5. What happens if I apply and qualify for the Circuit Breaker Deferred Tax Program for 1 or more years and in the future I no longer qualify or I fail to submit the required annual application?

Until a disqualification event occurs, the deferred taxes will not become due. Since incomes can vary from year to year it is possible that you may qualify 1 year, but not the next, and then re-qualify in a subsequent year.

6. Does all deferred taxes have to be repaid?

The last 3 years of deferred taxes prior to a disqualifying event and any deferred taxes for the current year must be repaid.

7. Does interest also have to be paid on deferred taxes when they become due?

Yes, interest does have to be repaid on deferred taxes. The amount of interest is calculated from the date the taxes would have originally become due.

8. What is considered income and how much can I make and still qualify for the circuit Breaker Tax Deferment Program?

Income is defined as all moneys received from every source other than gifts or inheritances from family members. For the calendar year 2022, the income limit is $50,700. This threshold is adjusted annually for cost-of-living.

View a list of

income examples.

9. What is considered part of my Homestead / Permanent Residence?

It includes your dwelling, the dwelling site (not to exceed 1 acre), and related improvements such as a garage, carport or storage building. The dwelling may be a single family residence, condominium, townhome or a manufactured home. The tax on additional land and buildings, not part of the homestead/permanent residence, is not subject for any exclusion.

10. Do I have to apply in person?

For this exemption, the qualifying homeowner may submit an application by mail, or in person at the Tax Department at 135 East Water Street, Room 100. Since this program is based on your annual income, each year you must file a new application.

2023 application.

11. How can I show that I am 100% totally and permanently disabled?

You must furnish a certification that you are totally and permanently disabled from either a physician licensed to practice medicine in North Carolina or from a governmental agency authorized to determine qualifications for disability benefits. If you or your spouse is over 65 years old, and meets the income requirements, you do not need to submit a certification of disability.

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Physician Certification of Disability (PDF)

12. How do I provide proof of income?

If you are required to file a Federal Income Tax return you must provide a copy of the return. For non-income tax filers, other proof of income is required. Proof of income must reflect income for the year immediately preceding the tax year for which an application is made. (For example, if an application is submitted for 2022, income for 2021 must be reported.)

For details, please view the

2023 application.

13. When is the deadline to file an application?

Applications are timely filed if received by June 1 of the year for which the exemption is applied.

14. Do I need to reapply annually?

Yes.

An annual application is required.