Property tax relief gains momentum in North Carolina
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Republicans in both chambers of the North Carolina General Assembly are now pursuing property tax relief proposals aimed at easing costs for homeowners.
Why it matters: Parallel efforts in the Senate and House increase the chances that property tax reform might actually pass this year.
The big picture: Local governments rely on property taxes to pay for services core to everyday life, like public schools, first responders, parks and roads.
- But rising tax bills are adding to financial strain for homeowners and renters, and Raleigh lawmakers are taking notice this election year.
By the numbers: 28% of households are cost-burdened, meaning they spend over 30% of their income to pay the mortgage or rent, the North Carolina Housing Coalition estimates.
- Families that rent have it especially hard, the NCHC data shows. About half struggle to afford their rentals, and nearly 195,000 faced an eviction filing in 2025. Over 11,000 homeowners faced foreclosure in 2025.
Driving the news: Republican Senate leader Phil Berger asked senators to "consider policy proposals to rein in the runaway property tax practices being implemented across the state," according to a statement last week.
Catch up quick: Meanwhile, a House select committee with a similar mandate began meeting in December. Representatives discussed placing limits on how much property tax bills can increase in any given year.
- Lawmakers have taken a closer look at the $2.1 billion in taxes that go uncollected each year because of exemptions granted to universities, religious institutions and others. In January, they zeroed in on the $60 million foregone by local governments because land used for nonprofit affordable housing projects is exempt.
What they're saying: Yolanda Winstead, president and CEO of the nonprofit housing developer DHIC, tells Axios that doing away with those exemptions would make the affordability crisis worse, not better.
- "It's the wrong way to frame the conversation, because that affordable housing is a public service also," Winstead says.
The intrigue: An affordable housing expert with Self-Help Credit Union previously told lawmakers that some for-profit entities were taking advantage of the exemption to pocket extra cash.
- Winstead tells Axios she's vaguely aware that some developers have a "rent-a-nonprofit" strategy — "There's always someone out there looking for a loophole" — but that legitimate nonprofits in the affordable housing space depend on the tax exemptions to stay afloat.
- "The tax exemption is not some financial windfall … [It] is just a tool that allows us to keep adding to the affordable housing stock," she says.
Between the lines: Cities and counties are concerned that major new property tax relief could strain local budgets, especially in smaller towns.
- "The cost of a fire truck is $1 million whether you're in Raleigh or Mocksville or Catawba," Chris Nida, a researcher for the North Carolina League of Municipalities, previously said.
What's next: The House committee is scheduled to meet again on Wednesday, Feb. 18.