Property taxes are the greatest source of revenue for North Carolina’s local government. As such, they are taken seriously. If you are buying property, inheriting, or planning for a new financial year, here is some information about property taxes that you should know.
What is property tax?
Property tax is a tax imposed on the ownership of real property in North Carolina. Real property consists of land and buildings. It is calculated by multiplying the assessed value of your property by the millage rate for your taxing unit.
The millage rate is the tax rate used to calculate your property tax bill. Your local government sets this rate, so it can vary depending on your municipality. However, for most areas in North Carolina, the average rate is around 0.77%. Shelby, for example, is 0.880%. So, if you live in Cleveland County, and your real estate (residential) is valued at $100,000, your property tax bill would be $880.
The assessed value of your property in NC
This is the value of your property determined by your local government to calculate your property tax bill. The assessed value is usually lower than your property’s market value as it considers any exemptions or discounts that you may be eligible for. For example, if your home has a market value of $100,000 but is only assessed at $75,000, your property tax bill would be calculated using the assessed value rather than the market value.
Examples of property taxes owed each year
There are two kinds of property in North Carolina. The first one, which we’ve talked about, is real property. The second type is personal property. Personal property is movable assets like machinery, equipment, car, furniture, or other such large and valuable items. You pay personal property tax through your monthly or yearly bills like your annual vehicle registration.
Always deal with your taxes on time and pay the right amount. You could lose your property in North Carolina if you miss payments or lie about the amount you actually owe.