Sen. Hanig files bill in North Carolina Senate to raise elderly tax exclusion income limit

A new bill filed by State Sen. Bobby Hanig in the North Carolina Senate seeks to adjust income eligibility limits for property tax exclusions to reflect cost-of-living changes, according to the North Carolina State Senate.

The bill, filed as SB 135 on Feb. 24 during the 2025 regular session, was formally listed with the short title: ‘Expand Homestead Exclusion Inc. Elig. Limit.’

The following is our breakdown, based on the actual bill text, and may include interpretation to clarify its provisions.

In essence, this bill amends the income eligibility limit for the elderly or disabled property tax homestead exclusion in North Carolina. Starting with the taxable year beginning July 1, 2025, the income eligibility limit will increase from $25,000 to $48,000. For taxable years beginning on or after July 1, 2026, the income eligibility limit will be adjusted annually based on the cost-of-living adjustment to benefits under Titles II and XVI of the Social Security Act, rounded to the nearest $100. The Department of Revenue is responsible for determining and notifying counties of the new income eligibility amount each year. The act becomes effective for taxes imposed for taxable years starting on or after July 1, 2025.

Of the three sponsors of this bill, Hanig proposed the most bills (24) during the 2025 regular session.

Bills in North Carolina follow a multi-step process before becoming law. A lawmaker starts by filing a bill, which is assigned to a committee for review. The bill must be read three times in each chamber. If one chamber changes the bill after the other passes it, both must agree on the final version. Once both chambers approve the same bill, it goes to the governor, who has 10 days (or 30 if the legislature is not in session) to sign, veto, or let it become law without a signature.

You can read more about the bills and other measures here.

Hanig, a Republican, was elected to the North Carolina State Senate in 2025 to represent the state’s 1st Senate district, replacing previous state senator Norman Sanderson.