Real Property Taxes

Real property taxes include the land and buildings on that land. Whereas your personal property and registered motor vehicles are not considered real estate. In North Carolina, there are no state property taxes, therefore the property taxes are a locally assessed and calculated tax, which each county individually determines and collects. Each taxing jurisdiction (i.e., county) determines the tax rates depending on the budget that they need for that fiscal year and the North Carolina Department of Revenue regulates this process.

When property is being bought and sold during the year, North Carolina law requires that the property tax is prorated amongst the seller and buyer, unless otherwise provided by contract. The closing attorney calculates the property tax proration, which is then disclosed on the settlement statement. Additionally, sellers must pay a one-time real estate transfer fee, called excise tax or stamp tax.

To calculate the property tax for your home, you first have to find out what your assessed taxable value is for your home, which can be found online. For example, if your assessed taxable value is $200,000 (for your real estate), you then divide that by 100 which would equal $2000 (as a taxable value). You then multiply your taxable value of $2000 by your local county tax rate (.32 for example) and that will give you your property tax owed for the year. Therefore, $2000 multiplied by .32 equals $640 (as your property tax owed for the year). Please reach out to our law firm if you have any questions about your real property taxes.

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