North Carolina Bill Proposes Major Property Tax Break for Disabled Veterans

A newly filed bill in the North Carolina General Assembly aims to provide expanded property tax relief for disabled veterans. The Heroes Homestead Act (SB DRS45063-Nlf-42A) was introduced on February 21, 2025, by primary sponsors Senators Benton Sawrey, Michael Lazzara, and Todd Johnson, with additional support from Senators Val Applewhite, Danny Britt, and Timothy Moffitt. The bill has bipartisan backing, signaling broad support for veteran tax relief.

The legislation proposes an increase in the property tax homestead exclusion property tax homestead for qualifying disabled veterans, raising the exempt portion of a primary residence’s appraised value from $45,000 to $76,500. If enacted, this measure would significantly reduce the tax burden on eligible veterans, reinforcing North Carolina’s commitment to supporting those who have served.

Senator Benton Sawrey, a primary sponsor of the bill, underscored the importance of the measure, pointing out that North Carolina is falling behind in veteran support compared to other states. “North Carolina is home to one of the largest military bases in the world, but we’re lagging other states in some areas and with respect to our veterans,” Sawrey said. “One of those is how we approach property taxes, generally, and how counties factor improvements on property related to disabilities into valuation. This is a good first step toward keeping homes affordable for people on a fixed income in our state and is an appropriate way to honor those that have sacrificed on behalf of our country. I hope this eventually leads to a full repeal of property taxes for disabled veterans in our state.”

The bill, which does not cite specific counties, is categorized under armed forces, property, public real estate, tax exemptions, and veterans’ taxation policies. If passed, the changes would take effect for taxable years beginning on or after July 1, 2026.

The Heroes Homestead Act is currently under legislative review and awaits further action.