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How to Calculate Real Estate Taxes in North Carolina

by Lesley Barker

Overview

Real estate taxes in North Carolina are collected by each county. The rates are set by the county assessors. Within counties there are various tax districts that add their own levies. A North Carolinian's real estate tax liability is based on the property that he owns on January 1. The properties are appraised based on their true monetary value and reappraised at least once every 8 years. You can find your property tax rate at the North Carolina Department of Revenue website.

Step 1

Go to the North Carolina Department of Revenue website (see Resources below). Find the lower section of the left navigation menu called "Quick Links." Click on "Tax Information." A new page will pop up. Select and click on the words "Property Tax."
Step 2

Locate the link to North Carolina counties, which will take you to a PDF download called "Tax Rates 08-08," or the most recent year available on the website. Find your county and look on the chart to find the effective tax rate. If there are special levies because of a fire-protection district, for example, they will be noted and the total tax rate will be calculated and listed as a decimal.
Step 3

Know your property's market value. This number is derived from the property's original cost. Then, using a trending schedule available from the North Carolina Department of Revenue, your county assessor arrives at your property's replacement value. Then the assessor calculates the market value of the property by applying a depreciation schedule. In North Carolina, properties are assessed at their "true" or "market" value.
Step 4

Divide the assessed value of your property by $100. Then multiply the answer by the tax rate for your county. The product will be what you will be charged for your North Carolina real estate, or property taxes.
Step 5

Challenge the real estate tax bill you receive from your county assessor if it does not match your calculation by contacting your assessor. You can find the county assessor's name and telephone number on a PDF file at the North Carolina Department of Revenue website. It is called "County List."