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Updated 2025 Tax Year

Durham County
Property Tax Guide

Everything you need to know about property taxes in Durham County, NC. Rates, due dates, exemptions, and how it affects your monthly payment.

10 Official Sources
8 min read
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Quick Facts
Tax Rate
$0.5542 per $100 assessed value (county base) + municipal taxes $0.34-$0.50 per $100
1st Due
Jan 5
2nd Due
Jul 5
Exemptions
4+ Available
Section 1

How Property Tax Works

Durham County's property tax system funds essential local services including public schools, public safety, infrastructure maintenance, and county operations. Property taxes are levied based on assessed property values, which are reappraised every four years in North Carolina. The county uses these revenues to support the Durham Public Schools system, law enforcement, fire protection, parks and recreation, and other vital community services.

The effective tax rate in Durham County varies significantly by location within the county due to municipal taxes and special taxing districts. While the base county-wide rate for FY 2025-2026 is $0.5542 per $100 of assessed value, residents also pay municipal taxes that range from $0.3400 (Town of Cary) to $0.5000 (Town of Chapel Hill) per $100 of assessed value. This means combined tax rates range from approximately $0.89 to $1.05 per $100 of assessed value, depending on your specific location and any applicable special fire or service districts.

Section 2

What Makes Up Your Tax Bill

ComponentRate (per $100)Description
Durham County Operating$0.4785General county operations, services, and programs
Durham County Capital Finance$0.0757Debt service for county capital projects and infrastructure
Total County Rate (FY 2025-2026)$0.5542Base county-wide tax rate

Municipal Tax Rates (added to county rate):

  • City of Durham: $0.4371 (Combined: $0.9913)
  • Town of Morrisville: $0.3500 (Combined: $0.9042)
  • City of Raleigh: $0.3550 (Combined: $0.9092)
  • Town of Chapel Hill: $0.5000 (Combined: $1.0542)
  • Town of Cary: $0.3400 (Combined: $0.8942)

Additional special fire district taxes may apply depending on your property location. These rates apply to the FY 2025-2026 tax year and are subject to annual changes based on budget requirements.

Section 3

When Are Property Taxes Due?

For the 2025/2026 tax year in Durham County, property taxes are due in two installments:

First Installment
Jan 5
Delinquent after Dec 10
Second Installment
Jul 5
Delinquent after Apr 10
Pro tip: If you pay through mortgage escrow, your lender splits these payments across your monthly mortgage. If you pay directly, set calendar reminders to avoid late penalties.
Section 4

Supplemental Tax Bills

Supplemental taxes in Durham County are additional tax bills issued when there are changes to property ownership, new construction, or improvements made during the tax year. These are triggered when the assessed value of a property increases due to new construction, additions, or other improvements that were not included in the original annual assessment.

Supplemental taxes are calculated by applying the current tax rate to the difference between the new assessed value and the original assessed value, prorated for the remaining months in the tax year. For example, if you complete a $50,000 home addition in July and your combined tax rate is $0.99 per $100, you would owe approximately $297 in supplemental taxes (($50,000 ÷ $100) × $0.99 × 6/12 months remaining). The supplemental bill is typically issued 30-60 days after the county assessor records the improvement, and payment is due within the same timeframe as regular property taxes.

Example Calculation

Example 1: $300,000 Home in City of Durham

  • Assessed Value: $300,000
  • Available Tax Credit: Elderly/Disabled Credit (if qualified, requires application)
  • Net Taxable Value: $300,000 (assuming no credits applied)
  • Tax Rate: $0.9913 per $100
  • Annual Tax: $2,974
  • Monthly (if escrowed): $248

Example 2: $600,000 Home in Town of Cary

  • Assessed Value: $600,000
  • Available Tax Credit: Circuit Breaker Credit (if income-qualified, requires application)
  • Net Taxable Value: $600,000 (assuming no credits applied)
  • Tax Rate: $0.8942 per $100
  • Annual Tax: $5,365
  • Monthly (if escrowed): $447

Example 3: $1,000,000 Home in Town of Chapel Hill

  • Assessed Value: $1,000,000
  • Available Tax Credit: Disabled Veteran Credit (if qualified, requires application)
  • Net Taxable Value: $1,000,000 (assuming no credits applied)
  • Tax Rate: $1.0542 per $100
  • Annual Tax: $10,542
  • Monthly (if escrowed): $878

Note: All tax credits require separate applications and income/eligibility verification. Credits are not automatically applied.

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Section 5

Escrow & Property Taxes

Most mortgage lenders require property tax escrow accounts for Durham County properties, collecting monthly payments along with your mortgage payment to ensure taxes are paid on time. Lenders typically collect 1/12 of your annual tax bill each month, plus a cushion amount (usually 2 months) to account for potential tax increases. Your lender will pay your property taxes directly to Durham County when they become due.

Property taxes in Durham County are due by January 5th each year for the previous tax year. Lenders usually pay these taxes in December or early January to avoid late penalties. You should receive an annual escrow analysis from your lender showing how your payments were allocated and any adjustments needed for the coming year. If your property taxes increase significantly due to reassessment or rate changes, your monthly escrow payment will be adjusted accordingly. Property owners can verify that their lender has paid taxes on time by checking the Durham County Tax Administration website or calling their office directly.

How HonestCasa Helps
  • Understand whether your escrow is set correctly
  • See how rising taxes will change your monthly payment
  • Plan ahead instead of being surprised by "shortage" letters
Section 6

Frequently Asked Questions

Q: When are Durham County property taxes due for FY 2025-2026? A: Property taxes are due by January 5, 2026. Payments received after this date are subject to interest and penalties.

Q: What tax credits are available and do they require application? A: Durham County offers several tax credits that ALL require application: Elderly/Disabled Credit, Circuit Breaker Credit (income-based), and Disabled Veteran Credit. Applications must be filed using Form AV-9 by the specified deadline. These are not automatic and must be renewed periodically.

Q: How does the Homestead Credit work in North Carolina? A: North Carolina's Homestead Credit caps the annual increase in assessed value for qualifying homeowners, typically limiting increases to 10% per year rather than reducing the actual market value. This requires filing an application and is not automatically applied to your property.

Q: How often are properties reassessed in Durham County? A: Properties are reassessed every four years countywide. The most recent revaluation was effective January 1, 2025. Property owners can appeal assessments within 30 days of receiving their notice.

Q: What are the penalties for late payment? A: Interest accrues at 2% for the first month, then ¾% per month thereafter. Additional collection fees and advertising costs may apply for severely delinquent accounts.

Q: Can I pay my property taxes online? A: Yes, Durham County offers online payment options through their official website. You can pay by electronic check or credit card, though credit card payments may include processing fees.

Q: Why is my tax rate different from my neighbor's? A: Tax rates vary by municipality and special taxing districts within Durham County. City of Durham residents pay different rates than those in Chapel Hill, Cary, or unincorporated areas.

Q: How do I apply for the Circuit Breaker Credit? A: Qualifying homeowners with 2025 income of $38,800 or less may be eligible to pay no more than 4% of their income in property taxes. Applications are submitted using Form AV-9 with income documentation required.

Verified Sources

Backed by 10 Official Government Sources

Every fact in this guide is sourced from official county, state, and federal documents.

01
Tax Doc
2025 Tax Rates (FY 2025-2026)dconc.gov
02
County
Durham County Residents to Receive Tax Bills Soondconc.gov
03
Tax Doc
Tax Value Change (Census Blockgroups)compass.durhamnc.gov
04
FAQs • How can something that can't be used like a dilapidatorangecountync.gov
05
County
Tax Payment Deadline Approaching for Durham County ...dconc.gov
06
County
Durham County | Tax Payment Help Programsdconc.gov
07
County
Durham County | Property Tax Relief for Homeownersdconc.gov
08
County
Durham County | Property Tax Relief for Buildersdconc.gov
09
Tax Doc
Property Tax Relief Programsdconc.gov
10
Tax Doc
Property Tax - Formsncdor.gov
All sources verified as of 2025 Tax Year

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