North Carolina Child Deduction and Homestead Property Tax Relief¶
North Carolina tax relief relevant to caregiver households, including the North Carolina Child Deduction for qualifying children and property tax relief for elderly, disabled, disabled veteran, and circuit-breaker homestead applicants.
North Carolina allows a child deduction for each qualifying child for whom the taxpayer is allowed the federal child tax credit. For tax year 2025, the deduction is based on filing status and AGI and can be up to $3,000 per qualifying child. North Carolina also uses Form AV-9 for homestead property tax relief. The Elderly or Disabled Exclusion excludes the greater of $25,000 or 50% of the appraised value of a qualifying owner's permanent residence when the owner is at least 65 or totally and permanently disabled and meets the income limit. The Circuit Breaker Property Tax Deferment can limit taxes to 4% or 5% of income for qualifying older or disabled homeowners, with deferred taxes remaining a lien. Disabled veterans and qualifying surviving spouses may also use AV-9 for a separate disabled veteran exclusion.