NC veterans could see increased property tax breaks under new Senate proposals

North Carolina disabled veterans could receive additional financial relief from rising property taxes under new legislation introduced in the General Assembly.

Senate Bill 128, The Heroes Homestead Act, seeks to raise the property tax homestead exclusion from $45,000 to $76,500, offering greater financial relief for veterans starting in 2026. The proposal comes as property values continue to increase, which has raised property taxes and narrowed the veteran tax benefit.

In a comment to the Carolina Journal, Sen. Michael Lazzara, R-Onslow, explained that the tax benefit has become less impactful as property values have risen. He expressed optimism about the bill moving forward this year, noting that it will not impact the state’s tax revenue. 

“North Carolina has one of the largest military footprints in the country, and our state is growing rapidly,” said Lazzara, one of the primary sponsors. “As property values — and therefore property taxes — have risen, this veteran benefit has remained stagnant. This legislation will not affect the state’s tax revenue, and if we receive a favorable report from the Rules Committee, our chances of passing it this year look strong.”

Other co-sponsors, including Sens. Benton Sawrey, R-Johnston, and Todd Johnson, R-Union, emphasized the importance of honoring those who have served by providing disabled veterans and their families the security and stability they’ve earned.

“Our disabled veterans shouldn’t have to worry about losing their homes due to rising property taxes,” said Johnson. “This bill delivers real financial relief and shows that North Carolina values and supports those who have sacrificed in service to our country.”

There are over 600,000 veterans in North Carolina, according to 2022 data, of which 183,033, or 29%, have a disability rating. The bill would take effect for taxable years beginning on or after July 1, 2026, reinforcing North Carolina’s commitment to its veteran community.

A nearly identical bill filed on Monday by Sen. Bobby Hanig, R-Currituck, also aims to enhance disabled veterans’ property tax exclusions. However, Hanig’s legislation, Senate Bill 143 slashes the $45,000 exemption and instead removes the exclusion cap altogether, regardless of the home’s appraised value. Hanig, a veteran himself, did not immediately respond to a request for comment.

Hanig also co-signed legislation on Monday that would expand property tax relief for the elderly and disabled. Senate Bill 135 proposes increasing the income eligibility limit for the elderly or disabled property tax homestead exclusion from $25,000 to $48,000, starting with the taxable year beginning July 1, 2025.