Report: Highest and lowest property taxes in NC

A recent report from the Tax Foundation provides a detailed analysis of property taxes across states and counties nationwide. Although North Carolina ranks No. 36 overall, a closer look at the county-level data is particularly relevant given the recent surge in housing prices.

At the top of the list — Northampton County. The northeastern county sports the highest property taxes in North Carolina, which weighs heavily on residents when measured against median salaries and home prices.

Property tax rates in Northampton County, are 1.206%. The median home price is $102,200, and the median property taxes paid are $1,232. The per capita income is $49,507, only 80% of the statewide average, with a one-year change of 1.9%. 

“The good news from this Tax Foundation report is that North Carolina’s average property tax burden is 14th lowest in the country,” Brian Balfour, VP of research at the John Locke Foundation, told the Carolina Journal.  “That can, however, be attributed in part due to how different states finance government functions differently, especially public education. North Carolina counties typically shoulder a smaller share of public education funding, which means there’s less pressure on localities to raise more tax revenue.” 

At the other end of the spectrum, Jackson County has the lowest property tax burden at 0.369%. Its median housing value is $253,900, and median property taxes paid are $938. Jackson County’s per capita income is $46,605, also lower than the state average, with a one-year change of 4.1 %.

Property taxes do not have to rise in direct proportion to home prices, according to Abir Mandal, senior state tax policy analyst for the Tax Foundation. Assessed values determine a taxable value—often distinct from market values—and the levy rate. Governments can adjust levy rates downward when property values increase to manage property tax burdens on residents or limit their growth.

However, local governments often opt not to do adjust the levy rate, as they can allocate additional revenue elsewhere. Since they are not obligated to reduce rates, they can maintain the appearance of keeping property tax rates unchanged while still collecting more revenue due to rising property values.

“That being said, all else equal, higher property tax bills increase the costs of housing (or decrease the net benefit of home ownership),” said Mandal in the report. “This will decrease the demand for houses, especially in the long run, which will reduce the median price of housing in the area.”

As recently as 2023, the most recent yer for which data is available, North Carolina’s median income is $61,839. That’s up 4.9% on an annual basis, according to a report from the North Carolina Association of County Commissioners released in December 2024.  

“With the rapid rise in housing values over the past few years, it will be interesting to watch how counties adjust their property tax rates,” continued Balfour. “Will they lower rates enough to keep total property tax bills the same amount, or keep rates somewhat higher in order to collect more property tax revenue?”

According to an annual report from the Tax Foundation, North Carolina ranks No. 35 amongst state tax collections, bringing in $3,607 per capita.  All numbers are from the latest available data, FY23. 

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