North Carolina

Does North Carolina tax my mortgage?

No. Unlike several neighboring states, North Carolina has no mortgage tax or intangible recording tax, so you owe nothing on the loan amount itself when the mortgage is recorded. That keeps the financing side of your closing costs lower than in states that tax the loan.

Source: North Carolina Department of Revenue

What is the transfer (excise) tax when I buy in North Carolina?

North Carolina charges a real estate excise tax, often called revenue stamps, of $1.00 per $500 of the sale price (about 0.2 percent), usually paid by the seller and collected when the deed is recorded. Seven northeastern counties (Camden, Chowan, Currituck, Dare, Pasquotank, Perquimans, and Washington) add a local land transfer tax of up to 1 percent; the rest of the state does not.

The statewide excise tax is set by N.C. Gen. Stat. 105-228.30; the seven-county land transfer tax by 105-228.29.

Source: North Carolina Department of Revenue

What property-tax relief does North Carolina offer seniors and disabled owners?

Two main programs. The Elderly or Disabled Homestead Exclusion removes the greater of $25,000 or 50 percent of your home's appraised value for owners 65 or older or totally and permanently disabled, under an annual income limit (about $38,800 for 2026). The Circuit Breaker program instead caps your tax at a share of income and defers the rest until a later event.

Income limits adjust each year and you apply on NCDOR Form AV-9; confirm the current figures with your county tax office.

Source: North Carolina Department of Revenue

What property-tax break do disabled veterans get in North Carolina?

The Disabled Veteran Exclusion removes the first $45,000 of your home's appraised value from property tax for an honorably discharged veteran with a 100 percent permanent and total service-connected disability, with no age or income limit. Unmarried surviving spouses can also qualify, which makes it one of the state's most valuable property-tax benefits.

Set by N.C. Gen. Stat. 105-277.1C and certified on NCDOR Form AV-9 with VA documentation.

Source: North Carolina Department of Revenue VA loans →

Is there a North Carolina state veteran home loan?

Not a standalone state loan like Texas's or Oregon's. North Carolina veterans typically use a federal VA loan, which can require no down payment for eligible borrowers, and may layer on NCHFA's $15,000 NC 1st Home Advantage Down Payment and the state's disabled-veteran property-tax exclusion. The benefit comes from combining federal financing with state assistance and tax relief.

North Carolina's large military presence, including Fort Bragg and Camp Lejeune, makes VA financing especially common here.

Source: North Carolina Housing Finance Agency VA loans →

When do I need a jumbo loan in North Carolina?

It depends on the price and your county's conforming limit. Most of North Carolina uses the baseline limit, but higher-priced pockets, such as parts of Charlotte and the Research Triangle, plus resort areas in the mountains near Asheville and on the coast near Wilmington and the Outer Banks, more often push buyers toward jumbo financing when the loan amount exceeds the local ceiling.

Source: Federal Housing Finance Agency (FHFA) Jumbo loans →

What are the most affordable places to buy a home in North Carolina?

North Carolina's more affordable markets tend to be Greensboro, Winston-Salem, Fayetteville, and much of non-metro North Carolina, where price-to-income ratios are gentle. Charlotte, the Research Triangle, Asheville, and Wilmington run higher. Outer suburbs of Charlotte and Raleigh offer a middle ground that pairs well with FHA limits and NC Home Advantage.

Source: U.S. Census Bureau, American Community Survey

What does it actually cost to own a home in North Carolina?

Your ongoing cost combines property taxes, softened by the homestead and disabled-veteran exclusions, plus homeowners insurance that runs higher on the coast. North Carolina levies a flat state income tax. At closing, factor in the one-time transfer (excise) tax, though there is no tax on the mortgage itself. Mapping these early prevents surprises.

Source: North Carolina Department of Revenue

Which North Carolina markets are best for first-time buyers?

First-time buyers often have the most room in Greensboro, Winston-Salem, Fayetteville, and the outer suburbs of Charlotte and Raleigh, where lower prices line up with FHA limits and NC Home Advantage assistance. Running the numbers on price, taxes, and insurance early helps you target a market where the monthly cost comfortably works for your budget.

Source: North Carolina Housing Finance Agency Affordability calculator →

Does North Carolina tax my mortgage?

No. Unlike many states, North Carolina has no mortgage tax or intangible recording tax, so you owe nothing on the loan amount when the mortgage is recorded. You will still pay the one-time transfer (excise) tax on the sale, which the seller usually covers, but the financing side stays free of state tax.

What is the transfer (excise) tax in North Carolina?

North Carolina charges a real estate excise tax, often called revenue stamps, of $1.00 per $500 of the sale price, about 0.2 percent, usually paid by the seller and collected when the deed is recorded. It is a one-time cost settled at closing rather than an ongoing tax.

Do any North Carolina counties charge an extra transfer tax?

Yes. Seven northeastern counties (Camden, Chowan, Currituck, Dare, Pasquotank, Perquimans, and Washington) levy a local land transfer tax of up to 1 percent on top of the state excise tax. The rest of North Carolina does not, so the extra cost applies only in those specific counties.

What property-tax relief does North Carolina offer seniors and disabled owners?

The Elderly or Disabled Homestead Exclusion removes the greater of $25,000 or 50 percent of appraised value for owners 65 or older or totally and permanently disabled, under an annual income limit. The Circuit Breaker program instead caps tax at a share of income and defers the rest. Limits adjust yearly, so confirm the current figures with your county.

What property-tax break do disabled veterans get in North Carolina?

The Disabled Veteran Exclusion removes the first $45,000 of a home's appraised value for an honorably discharged veteran with a 100 percent permanent and total service-connected disability, with no age or income limit. Unmarried surviving spouses can also qualify, making it one of the state's most valuable property-tax benefits.

Is there a North Carolina state veteran home loan?

Not a standalone state loan like Texas's or Oregon's. North Carolina veterans typically use a federal VA loan, which can require no down payment for eligible borrowers, and may add NCHFA's $15,000 down payment assistance and the state's disabled-veteran property-tax exclusion. The benefit comes from combining federal financing with state relief.

When do I need a jumbo loan in North Carolina?

It depends on the price and your county's conforming limit. Most of North Carolina stays within the baseline, but higher-priced parts of Charlotte and the Research Triangle, along with resort areas near Asheville, Wilmington, and the Outer Banks, more often require jumbo financing when the loan amount exceeds the local ceiling.

What is the NC Home Advantage program?

NC Home Advantage is the state housing agency's main program, pairing a fixed-rate mortgage with down payment assistance up to 3 percent of the loan for first-time and move-up buyers. First-time buyers and veterans may add $15,000 through NC 1st Home Advantage or a Mortgage Credit Certificate. It can be funding-limited, so confirm current availability before relying on it.

What credit score do I need to buy a house in North Carolina?

It depends on the program. Conventional loans typically expect higher scores, while FHA may allow lower scores with other compensating factors, and NCHFA programs generally look for 640. There is no single statewide number, and your full financial profile matters more than any one threshold.

What are the most affordable places to buy a home in North Carolina?

Greensboro, Winston-Salem, Fayetteville, and much of non-metro North Carolina generally offer the gentlest price-to-income ratios, while Charlotte, the Research Triangle, Asheville, and Wilmington run higher. Outer suburbs of Charlotte and Raleigh sit in between and often line up well with FHA limits and NC Home Advantage.