Overview of North Carolina Taxes
North Carolina’s property tax rates are relatively low in comparison to those of other states. The average effective property tax rate in North Carolina is 0.70%, well under the national average of 0.99%.
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About This Answer
To calculate the exact amount of property tax you will owe requires your property's assessed value and the property tax rates based on your property's address. Please note that we can only estimate your property tax based on median property taxes in your area. There are typically multiple rates in a given area, because your state, county, local schools and emergency responders each receive funding partly through these taxes. In our calculator, we take your home value and multiply that by your county's effective property tax rate. This is equal to the median property tax paid as a percentage of the median home value in your county.
North Carolina Property Taxes
Buying a home in Raleigh, Burlington, Charlotte or another North Carolina city? If so, you’ll want to know what to expect on your annual property tax bill. Property taxes in North Carolina are a key source of revenue for local governments, providing funding for services such as public education and law enforcement.
North Carolina’s property tax rates are nonetheless relatively low in comparison to what exists in other states. The average effective property tax rate in North Carolina is 0.70%, which compares rather favorably to the 0.99% national average.
Check out our North Carolina mortgage rates guide for information about purchasing or refinancing properties in the state.
A financial advisor can help you understand how homeownership fits into your overall financial goals. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
How North Carolina Property Taxes Work
North Carolina’s property tax is “ad valorem,” which means that it is based on the value of property. A county assessor determines the value of a property and is required to revalue a property at least once every eight years. The goal of the reappraisal is to determine the current market value of the property.
Since that reappraised value will affect a homeowner’s taxes for as many as eight years, it is important for homeowners to ensure that the value is accurate. An appraisal that is too high can mean nearly a decade of over-taxation.
If you disagree with your revaluation in North Carolina, you can appeal to the local Board of Equalization. It is also common to contact local officials before filing an official appeal to see if the issue can be settled informally.
Barring an appeal, the local tax rate applies to the assessed value determined by the county assessor. Seniors may be eligible for the homestead property tax exemption, which reduces their home's assessed value by the greater of 50% or $25,000. In 2020, seniors with a total income of $31,000 or less were eligible for this exemption.
North Carolina Property Tax Rates
There is no state property tax in North Carolina, which means tax rates are determined entirely by local governments. Cities and counties can levy their own taxes, and special tax districts in some areas also collect property taxes for services like fire protection.
Since properties are reassessed so rarely in North Carolina, assessed values can differ greatly from actual home values, and it can be difficult to compare rates from one area to the next. For that reason, it is useful to look at effective tax rates. An effective tax rate is the annual property tax paid as a percentage of total home value. The table below shows the average effective tax rate, median home value and median annual tax payment for every county in North Carolina.
Looking to calculate your potential monthly mortgage payment? Check out our mortgage calculator.
Mecklenburg County
One of the most populous counties in North Carolina, Mecklenburg County encompasses the city of Charlotte as well as several of its suburbs. The average effective property tax rate in Mecklenburg County is 1.03%, which ranks as the 13th-highest rate in the state.
In Charlotte, the total city and county rate was 0.965% for 2019-2020. A fire service rate of 0.067% and a police district rate of 0.178% applies to unincorporated areas in Charlotte. All of those rates apply to assessed value, which was last calculated in 2019 in Mecklenburg County.
If you have questions about how property taxes can affect your overall financial plans, a financial advisor in Charlotte can help you out.
Wake County
Wake County is located in central North Carolina and encompasses the state capital of Raleigh. In comparison to other major North Carolina counties, the average property tax rates in Wake County are relatively low. The county’s average effective rate is just 0.96%.
Guilford County
Property taxes in Guilford County rank near the top of all counties in North Carolina. The county’s median annual property tax payment is $1,798. Considering the median home value in the county is $172,900, that leads to an effective property tax rate of 1.04% in Guilford.
Forsyth County
The fourth most populous county in North Carolina, Forsyth County has property tax rates somewhat higher than the state average. The average effective property tax rate in Forsyth County is 1.10%.
The most recent revaluation in Forsyth County took place in 2017. The county has opted to revalue properties more frequently than the state minimum, which is eight years. So in this case, revaluations typically occur every four years.
Cumberland County
Cumberland County is located in eastern North Carolina and contains the city of Fayetteville. The average effective property tax rate of 1.20% in Cumberland County ranks as the seventh-highest rate in the state. Based on this, property taxes on a home worth $139,700 would be $1,673 per year.
Durham County
Homeowners in Durham County pay some of the highest property taxes in the state. The county’s average effective property tax rate is 1.17%, which comes in as the fourth-highest rate of any North Carolina county.
Buncombe County
This western North Carolina County has property tax rates well below the state average. The county’s average effective property tax rate is just 0.78%. The county’s last revaluation was in 2021 since it chooses to hold assessments every four years instead eight, which is the states minimum.
Gaston County
Gaston County is situated west of Charlotte, along the border with South Carolina. Its tied for the eight highest17th- average effective property tax rate in the state at 1.10%. However, that's lower than in nearby Mecklenburg County, where the rate is 1.05%.
New Hanover County
According to the U.S. Census Bureau, the median home value in New Hanover County is $258,200, among the highest in North Carolina. It's no surprise, then, that the county’s median annual property tax payment is $1,915, higher than all but nine counties in the state.
Union County
Located to the southeast of Charlotte, Union County has among the lowest property tax rates of any county in the greater Charlotte metropolitan area. The county’s average effective property tax rate is 0.77%, meaning a homeowner whose home is worth $254,100 (the county median) would pay about $1,961 annually in property taxes at that rate.
Property Tax: Which Counties are Getting the Best Bang for Their Buck
SmartAsset’s interactive map highlights the places across the country where property tax dollars are being spent most effectively. Zoom between states and the national map to see the counties getting the biggest bang for their property tax buck.
Methodology
Our study aims to find the places in the United States where people are getting the most for their property tax dollars. To do this we looked at school rankings, crime rates and property taxes for every county.
As a way to measure the quality of schools, we calculated the average math and reading/language arts proficiencies for all the school districts in the country. Within each state, these schools were then ranked between 1 and 10 (with 10 being the best) based on those average scores.
For each county, we calculated the violent and property crimes per 100,000 residents.
Using the school and crime numbers, we calculated a community score. This is the ratio of the school rank to the combined crime rate per 100,000 residents.
We used the number of households, median home value and average property tax rate to calculate a per capita property tax collected for each county.
Finally, we calculated a tax value by creating a ratio of the community score to the per capita property tax paid. This shows us the counties in the country where people are getting the most bang for their buck, or where their property tax dollars are going the furthest.
Sources: US Census Bureau 2015 American Community Survey, Department of Education, Federal Bureau of Investigation, State Police or Justice Department websites
