Some Orange County homeowners could pay higher tax bills this year after a nearly 50% estimated increase in the county’s property values, officials said.
“Counties are seeing large increases throughout the state,” Tax Administrator Nancy Freeman told the Orange County Board of Commissioners Tuesday. The tax office is wrapping up the 2025 revaluation, which resets home and commercial property values.
This year’s median home sales price could reach $423,000 in Hillsborough, $612,500 in Carrboro, and $660,000 in Chapel Hill, Freeman said. That’s a 43% increase for Chapel Hill since 2021, when the median sales price was $460,000.
A tax office survey of 21 counties showed property values are up 25% to 88% in the last few years, Freeman said. Counties similar to Orange County are seeing an average increase of 61%, she said.
In Johnston County, significant growth since 2019 has led to a 70.6% increase or more in the median sales price, The News & Observer has reported. Wake County property values rose an average of 53% in that revaluation last year.
Durham County officials are expecting an 80% jump in median home sales prices — to $430,500. Revaluation notices should go out this month.
Orange County will send out new tax value notices in mid-March. Public information events will follow, and the tax office will meet with the town boards in Chapel Hill, Carrboro and Hillsborough.
The county and towns will set new tax rates by June, and new tax bills will arrive in August. Property owners currently pay:
? Orange County: 86.29 cents per $100 in property value. A home valued at $450,000 generates a county tax bill of $3,883.05.
? Chapel Hill: 59.2 cents per $100 in property value. A $450,000 home generates a combined county and city tax bill of $6,547.05.
? Carrboro: 60.44 cents per $100 in property value. A $450,000 home generates a combined county and city tax bill of $6,602.85.
? Hillsborough: 60.7 cents per $100 in property value. A $450,000 home generates a combined county and city tax bill of $6,614.55.
? Chapel Hill-Carrboro property owners also pay a special city schools district. The tax rate is 19.8 cents, which adds $891 to the tax bill for a $450,000 home.
? An appraisal of residential and commercial properties countywide, based on fair market value — the price at which the property would sell on the open market.
? The property’s location, size, scale, and income potential — the highest and best use under current zoning — are also considered.
? The goal is ensuring owners of similar properties pay roughly the same tax bill.
? The state requires a revaluation at least every eight years, but more quickly if a county’s sales ratio grows too high or too low.
? The state requires counties to set a revenue-neutral property tax rate following a revaluation.
? The revenue-neutral rate ensures that local governments receive the same amount of tax revenue based on new market values that they collected before the revaluation.
? Local governments can budget around the revenue-neutral tax rate or raise it to bring in additional money.
? A revaluation can generate higher tax bills for some property owners, while others can see their bills reduced.
An appeals form is included with revaluation notices and also available online. Submit an appeal:
? By mail: Orange County Board of Equalization and Review, Orange County Tax Office, P.O. Box 8181, Hillsborough, NC 27278-8181
? In person: Place in lockbox at 228 S. Churton St., Hillsborough
? Online: https://appeals.spatialest.com/nc-orange#/
There are two appeals periods:
? Informal appeal: Property owners can submit a real property or personal property appeal, such as for a car or mobile home, from mid-March through April 30. Staff handles informal appeals.
? Formal appeal: Property owners can submit a real property appeal or a personal property appeal, such as for a car or mobile home, from May 1 through July 31. The county’s Board of Equalization and Review considers formal appeals.
? Board of Equalization and Review decisions can be appealed to the N.C. Property Tax Commission.
There are local and state programs — each with its own requirements — that help lower-income property owners pay their tax bills.
? Homestead Exclusion: Open to homeowners who are 65 and older or permanently disabled as of Jan. 1, with incomes below $37,900. Provides a discount of $25,000 or 50% of the appraised value of the home and up to an acre of land, whichever is greater. Must own your home as of Jan. 1.
? Circuit Breaker Tax Deferment: A tax deferment program that puts a lien on your property. All owners of the property have to be approved and cannot earn more than $56,850 a year in 2025. Taxes from the last three years of program participation must be repaid if the owner dies, is later disqualified, or stops using the home as their permanent residence.
? Disabled Veteran Exclusion: Available to honorably discharged veterans from any military branch who get their disability documented through the Veterans Administration. Offers a $45,000 tax discount. Applications are due before June 1 each year.
? Longtime Homeowners Assistance Program: A tax relief program for Orange County and Chapel Hill property owners who have lived in their home for at least five years, earn no more than 80% of the area median income for their household size, and own a home worth less than the county’s annual property value limit.
There may be exceptions for households that also include a person age 70 or older or someone who is disabled.
This story was originally published February 26, 2025 at 8:28 AM.
TG
The News & Observer
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Tammy Grubb has written about Orange County’s politics, people and government since 2010. She is a UNC-Chapel Hill alumna and has lived and worked in the Triangle for over 30 years.