Do vets pay property tax in nc

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Summary of North Carolina Military and Veterans Benefits: North Carolina offers special benefits for service members, Veterans and their families including property tax exemptions, state employment preferences, education and tuition assistance, vehicle tags, as well as hunting and fishing license privileges. Eligibility for some benefits may depend on residency, military component, and Veteran disability status.

North Carolina Department of Military and Veterans Affairs (NCDMVA), County Veterans Service Officers: The NCDMVA has trained County Service Officers who can assist Veterans, retired service members and their families find and apply for Veterans’ benefits under federal, state and local laws. All their services are provided free of charge.

North Carolina Military and Veterans State Benefit Highlights and Eligibility

Welcome to North Carolina

What are my North Carolina Military and Veterans State Taxes Benefits?

North Carolina Taxes on Military Pay: Military pay received by resident service members serving in the U.S. Armed Forces is taxed in North Carolina.

However, pay that is received for service in a combat zone or hazardous duty location that is excluded from the service member’s federal income is also excluded from North Carolina state income tax. Service members will be given a 180 day extension to file their state taxes from the date they leave the combat zone, or when they are released from a hospital for wounds or injury, they received in a combat zone.
North Carolina Department of Revenue, Troops Serving in a Combat Zone Information

North Carolina Taxes on Military Retired Pay: Military retired pay received for 20 years of service in the U.S. Armed Forces or by service members who are medically retired can be deducted from North Carolina adjusted gross income.

Thrift Savings Plan (TSP) does not withhold taxes for state or local income tax, but it is reported annually on IRS Form 1099-R. All TSP distributions are subject to state taxes and early distributions may incur higher taxes.

North Carolina Taxes on Military Disability Retirement Pay: Military Disability Retirement Pay received as a pension, annuity or similar allowance for personal injury or sickness resulting from active service in the U.S. Armed Forces should not be included in taxable income. Some of the payments which are considered disability benefits include:

North Carolina Taxes on Military Survivor Benefit Plan (SBP), Reserve Component Survivor Benefit Plan (RCSBP) and Retired Serviceman's Family Protection Plan (RSFPP): Survivor pension benefits paid to the beneficiaries of a retired service member can be deducted from a taxpayer's North Carolina adjusted gross income.

North Carolina State Taxes on U.S. Department of Veterans Affairs Disability Dependency and Indemnity Compensation (DIC): DIC is a tax-free monetary benefit paid to eligible survivors of service members who died in the line of duty or eligible survivors of Veterans whose death resulted from a service-connected injury or disease.

North Carolina Tax Relief for Service Members and Certain Veterans: North Carolina offers the following tax benefits to service members and eligible Veterans:

soldier behind barbwire

Cancellation of Certain Assessments and Abatement of Income Tax: Any unpaid North Carolina Income tax that is owed prior to the time a person enters the U.S. Armed Forces will be canceled and abated if the service member is killed while serving or is receiving service-connected disability compensation. No interest is payable for any refund owed for overpayment of taxes.

Allowances for Service Members: Subsistence and quarters allowances, uniform and equipment allowances, and mustering-out payments are not taxable. Mileage and per diem for official travel and transportation are not taxed unless they exceed the actual travel and transportation expenses.

Deductions for Service Members: Service members can deduct from their North Carolina taxes the cost of any insignia, swords, aiguillettes, epaulets, campaign bars, cap devices, chinstraps, and the cost of altering uniforms required due to a change in rank.

Education and Training Allowances: VA educational payments paid to a Veteran enrolled in an educational institution are tax exempt.

disabled vet in a wheelchair

Grants for Motor Vehicles:VA grants for motor vehicles for Veterans who lost their sight, or the use of their limbs are exempt from income taxes.

Grants for Specially Adapted Housing: VA grants to seriously disabled Veterans for homes modified for wheelchairs are exempt from income taxes.

Gratuity Pay, Six-Months: The six-month gratuity pay to a beneficiary of a deceased service member is exempt from income taxes.

Real Property Tax: The first $45,000 of the appraised value of the permanent residence of an eligible disabled Veteran is exempt from North Carolina property taxes.
Who is Eligible for a Property tax Exemption? Honorably discharged Veterans who have a total and permanent, service-connected disability rating from the VA or who receives benefits for specially adapted housing are eligible. This exemption is also available for the unremarried surviving spouse of an honorably discharged disabled Veteran. For more information and to apply contact the local County Tax Office.
North Carolina County Tax Assessor Directory

Specially Adapted Vehicles: A motor vehicle owned by a disabled Veteran that is modified with special equipment to accommodate their service-connected disabilities is exempt from property taxes.

North Carolina Income Tax Exemption for Nonresident Military Spouses: A nonresident military spouse’s income earned in North Carolina is exempt from North Carolina income taxes if they meet the following three requirements:

Military spouses may choose to use the same state of residence as the service member for state tax purposes if the first two requirements are met.

What are my North Carolina Military and Veterans Education Benefits?

North Carolina National Guard Tuition Assistance Program (NCTAP): NCTAP is a tuition reimbursement program for drilling members of the North Carolina National Guard who are attending an approved North Carolina educational institution.

Tuition may be reimbursed for service members for an associate, bachelor, or graduate degree, graduate certificate or for attending vocational training.

Service members may use NCTAP before initial active duty training. NCTAP is subject to the availability of funds and varies from semester to semester.
Who is eligible for NCTAP? To qualify for NCTAP funds, the service member must meet the following requirements:

For more information, please call the North Carolina National Guard Education Services Office at 984-664-6272, or email ng.nc.ncarng.mbx.education-service-office@army.mil.
NCTAP Application

soldier uing a computer

North Carolina In-State Tuition for Nonresident Service Members and their Dependents: Nonresident service members and their dependents may be eligible for in-state tuition.
Who is eligible for North Carolina In-State Tuition for Nonresident Service Members and their Dependents? Service members serving on active duty in the U.S. Armed Forces and assigned to a military installation in North Carolina under military orders are eligible for in-state tuition. All North Carolina National Guard service members are charged in-state tuition regardless of state of residence.

If the service member is reassigned outside North Carolina, they will continue to qualify for in-state tuition if they remain continuously enrolled in the program they were in prior to reassignment. An eligible service member’s dependents are also eligible for in-state tuition.

Residency for Tuition Purposes for Students using U.S. Department of Veterans Affairs Education Benefits: Students who are using VA education benefits are eligible for resident tuition rates at North Carolina higher education institutions.

North Carolina Scholarship for Children of Wartime Veterans: The North Carolina Scholarship for Children of Wartime Veterans Program offers scholarships at North Carolina schools for the children of certain Veterans.

The scholarship is for eight academic semesters and must be used within eight years.
Who is eligible for North Carolina Scholarship for Children of War Time Veterans? Students must be a child under age 25 (at time of application) of a Veteran who was killed, disabled, or declared a prisoner of war or missing in action. The Veteran's service must have been during a period of war listed in North Carolina General Statutes 143B-1224.

North Carolina Vietnam Veterans Incorporated Scholarship Program (NCVVI): NCVVI was formed to grant scholarships for study at accredited institutions of learning by Vietnam Veterans. The amount of the scholarships will range from $500 to $2,000 and can be used to pay expenses for any year of undergraduate study at any college, junior college, community college, or trade school.
Who is eligible for the NCVVI Scholarship Program? Students must meet the following eligibility requirements:

Children sitting on the steps of a school

North Carolina Interstate Compact on Educational Opportunity for Military Children (MIC3): The purpose of this compact is to remove barriers to educational success imposed on children of military families because of frequent moves and deployment of their parents by:

Primary Point of Contact
Phone: 910-678-2304

Purple Star Award Program for North Carolina Military-Friendly Schools: The Purple Star Award program recognizes schools that show a major commitment to students and families connected to the U.S. Armed Forces.

For a school to qualify for the Purple Star Award they must appoint a school liaison who is specially trained to handle the unique challenges experienced by military families. This liaison will ensure that other teachers at their school are aware of special considerations that students from military families can benefit from. Each school will also have a dedicated page on their school website featuring resources for military families.
North Carolina Purple Star Award List of Recipients
Military Child Education Coalition Purple Star School Program

What are my North Carolina Military and Veterans Employment Benefits?

North Carolina State Employee Leave for Military Duty:North Carolina State employees who are service members serving in a reserve component of the U.S. Armed Forces are eligible for up to 120 hours for military leave for training per Federal fiscal year.

Service members who are called to involuntary active duty will receive up to 30 days of pay after which they may be eligible for differential pay (see below) during the period of active duty.
Who is eligible for the North Carolina State Employee Leave for Military Duty? National Guard and U.S. Armed Forces Reserve service members who are state employees are eligible for military leave.

ARNG driving a truck

North Carolina Differential Pay for Military Duty: North Carolina will pay differential pay to state employees who are service members serving in a reserve component of the U.S. Armed Forces, when they are called to active duty for more than 30 days. Differential pay is the difference between military basic pay (excluding housing, subsistence allowances, etc.) and their state salary (excluding any special pay such as shift premium, etc.) when military pay is less.

The service member must provide their Leave and Earnings Statement (or similar document) to their payroll office to calculate any amount due.

State Pension for North Carolina National Guard Service Members: North Carolina National Guard service members may be eligible to receive an additional pension from the state of $105 (paid monthly) for 20 years of creditable military service. Service members can receive an additional $10.50 for each additional year they serve, up to a maximum of $210 per month.
Who is eligible for State Pension for North Carolina National Guard Service Members? To be eligible for the North Carolina National Guard state pension, service members must meet the following requirements:

North Carolina State Employment Veterans Preference: North Carolina offers employment preference for eligible Veterans, current and former North Carolina National Guard service members and their spouses for state initial employment, subsequent employment, promotions, reassignments, horizontal transfers and reduction-in-force situations.

To claim Veterans’ preference, applicants must meet the minimum training and experience requirements for the position and must be capable of performing the duties required for the position.
Who is eligible for North Carolina State Employment Veterans Hiring Preference?

Active Duty Veteran Preference:

National Guard Preference:

For positions that do not have a numerical scoring system, preference is given by authorizing credit on a year for year, and month for month, basis, for all military service training and experience that is similar to the knowledge, skills, and abilities required for the position.

For positions where a numerical scoring system is used 10 preference points are awarded to the score of eligible applicants.

Retirement Credit for Military Service in North Carolina Local Government Employee Retirement Systems (LGERS): Participants in LGERS may be eligible to may receive retirement credit for up to five years of qualifying military service at no cost. Participants must meet the following requirements to be eligible: