HB 59 North Carolina House · 2025-2026 Session

Modify Homestead Exclusions.

HB 59 would increase the income eligibility limit for North Carolina's elderly or disabled property tax homestead exclusion from $25,000 to $48,000 for taxable years beginning July 1, 2026. This change would directly affect homeowners aged 65 or older, or those who are totally and permanently disabled, who meet other criteria (like being a North Carolina resident and owning their home as a permanent residence). The bill modifies the existing rule that currently limits eligibility to those with incomes under $25,000, raising the threshold to $48,000 while maintaining the exclusion amount as the greater of $25,000 or 50% of the home's appraised value. The change aims to expand access to this property tax relief for qualifying low-to-moderate income homeowners. (Note: The bill was withdrawn in June 2025 and has not become law.)

Bill status died 1 of 4 stages cleared

Introduction

Feb 2025

Committee Review

Floor Vote

Governor

Introduced Feb 4, 2025 Last action Jun 25, 2025

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What changed between versions

Edition 1 → Edition 2 · 6 edits

MODERATE

This bill modifies North Carolina's property tax homestead exclusion and circuit breaker programs to expand eligibility for married couples and introduce an alternative income test based on area median income. The changes aim to help more elderly and disabled homeowners qualify for tax relief by adjusting income thresholds and adding spousal income considerations.

Scope change

The bill expands the scope of the homestead exclusion program to include married couples with combined income up to 115% of the standard limit, and adds an alternate qualification path for homeowners who have lived in their property for 10+ years based on area median income rather than just the standard income limit.

ELIGIBILITY

New spousal income limitation allowing married couples to qualify if their combined income does not exceed 115% of the standard income eligibility limit.

New area median income (AMI) limit provision allowing homeowners to qualify based on 70% of area median income for households of two persons, providing an alternative qualification path.

Changed income eligibility threshold from 80% of area median income to 150% of the income eligibility limit for qualifying owners.

REQUIREMENT

Modified ownership and occupancy requirements for the circuit breaker program, reducing the required time from 15 years to 5 years for standard qualification and 10 years for alternate AMI-based qualification.

New tax limitation tables establishing different percentage thresholds (4%, 5%, and 6%) based on income levels and qualification paths.

Removed the 15-year continuous ownership and occupancy requirement that previously applied to all qualifying owners.

Floor votes

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Full legislative history

Actions timeline

Total actions

Key actions

Committee

Jun 25, 2025

Committee

Re-ref Com On Finance

lower

Jun 25, 2025

Lower · Passed

Reptd Fav Com Substitute

lower

Jun 23, 2025

Committee

Re-ref to the Com on Pensions and Retirement, if favorable, Finance, if favorable, Rules, Calendar, and Operations of the House

lower

Jun 23, 2025

Committee

Serial Referral To Rules, Calendar, and Operations of the House Stricken

lower

Feb 6, 2025

Committee

Ref to the Com on Finance, if favorable, Rules, Calendar, and Operations of the House

lower

Feb 4, 2025

Introduced

Filed

lower

3 primary · 34 co-sponsors