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Updated 2025 Tax Year

Montgomery County
Property Tax Guide

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

10 Official Sources
8 min read
Quick Facts
Tax Rate
0.63% of assessed value (varies by district with additional municipal and special district taxes)
1st Due
Sep 1
Exemptions
5+ Available
Section 1

How Property Tax Works

Montgomery County, North Carolina operates on a property tax system that serves as the primary funding source for essential county services, including public schools, infrastructure maintenance, emergency services, and local government operations. The county's property tax rate for the 2025 tax year is 0.63% of assessed value, which is below the statewide average of approximately 1%. This relatively modest rate reflects the county's commitment to maintaining reasonable tax burdens while providing necessary public services.

Property tax rates in Montgomery County can vary by location within the county due to special taxing districts, municipal taxes, and additional assessments for services like fire protection districts or municipal services. Property owners should verify their specific tax district to understand their total effective rate. The county conducts property revaluations periodically, with the next scheduled revaluation year set for 2027, ensuring that assessments reflect current market conditions.

Section 2

What Makes Up Your Tax Bill

ComponentRateDescription
County General0.63%Base county services, schools, infrastructure (FY 2025-2026)
Municipal TaxesVariesAdditional taxes for incorporated areas (varies by municipality)
Fire DistrictVariesSpecial assessments for fire protection services where applicable
Special DistrictsVariesAdditional assessments for specific service areas

Note: The 0.63% rate applies to the FY 2025-2026 levy year. Property owners in incorporated areas or special taxing districts may have additional taxes beyond the base county rate. Contact the Montgomery County Tax Assessor's office to determine your specific total tax rate based on your property's location and applicable districts.

Section 3

When Are Property Taxes Due?

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

First Installment
Sep 1
Delinquent after Dec 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 Montgomery County are additional property tax assessments that occur when there are mid-year changes to a property's assessed value or ownership. Common triggers include new construction completion, property improvements that increase value, changes in property use classification, or corrections to previous assessments. These supplemental bills are calculated based on the portion of the tax year remaining after the change occurs.

For example, if a homeowner completes a $50,000 addition to their home in January and the improvement is assessed mid-year, they would receive a supplemental tax bill for the increased assessment. The additional tax would be calculated as: ($50,000 × 0.63%) prorated for the remaining months of the tax year. Supplemental taxes are billed separately from regular annual property tax bills and have their own due dates, typically 30 days from the bill date.

Example Calculation

Example 1: $300,000 Home

  • Assessed Value: $300,000
  • Less: Homestead Credit (if applicable): Variable based on qualification
  • Net Taxable Value: $300,000 (assuming no credits applied)
  • Annual Tax: $300,000 × 0.63% = $1,890
  • Monthly Escrow: $157.50

Example 2: $600,000 Home

  • Assessed Value: $600,000
  • Less: Homestead Credit (if applicable): Variable based on qualification
  • Net Taxable Value: $600,000 (assuming no credits applied)
  • Annual Tax: $600,000 × 0.63% = $3,780
  • Monthly Escrow: $315.00

Example 3: $1,000,000 Home

  • Assessed Value: $1,000,000
  • Less: Homestead Credit (if applicable): Variable based on qualification
  • Net Taxable Value: $1,000,000 (assuming no credits applied)
  • Annual Tax: $1,000,000 × 0.63% = $6,300
  • Monthly Escrow: $525.00

Important Note: Tax credits such as the Homestead Credit require separate application and are not automatically applied. Credits can significantly reduce your tax liability, so eligible homeowners should apply using the appropriate forms.

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Section 5

Escrow & Property Taxes

Most homeowners with mortgages in Montgomery County have their property taxes collected through an escrow account managed by their lender. Mortgage servicers typically collect 1/12th of the estimated annual property tax bill with each monthly mortgage payment, holding these funds in escrow until tax payments are due. Lenders are required to pay property taxes on behalf of homeowners before the October 1st due date to avoid penalties and potential tax liens.

Property owners should verify that their lender has current and accurate tax information, especially after revaluations or when tax credits are applied. If your property taxes change due to successful appeals, new exemptions, or assessment corrections, notify your mortgage servicer immediately to adjust escrow collections. Lenders must provide annual escrow statements showing tax payments made and may require escrow adjustments if tax amounts change significantly. Property owners always remain ultimately responsible for ensuring taxes are paid correctly and on time, even when using escrow services.

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 Montgomery County property taxes due for the current fiscal year? A: Property taxes are typically due October 1st each year. For the 2026 tax year, taxes are due October 1, 2026. Tax bills are usually mailed in late spring or early summer.

Q: What tax credits are available and do I need to apply? A: Montgomery County offers several tax credits including Homestead Credit for elderly/disabled residents, disabled veteran credits, and circuit breaker credits for qualifying low-income homeowners. All credits require separate application using form AV-9 and are NOT automatically applied to your tax bill.

Q: How does the Homestead Credit work? A: The Homestead Credit limits the annual increase in your home's assessed value for tax purposes, typically capping increases rather than reducing the total assessed value. This credit requires annual application and has income and age/disability requirements. It does not reduce your home's market value, only the taxable assessment growth.

Q: What are the application deadlines for tax credits? A: Most tax credit applications, including the Homestead Credit (form AV-9), must be filed by June 1st of the tax year for which you're seeking the credit. Contact the Montgomery County Tax Assessor's office for specific deadlines and requirements.

Q: When does Montgomery County conduct property revaluations? A: Montgomery County's next scheduled countywide property revaluation is in 2027. Revaluations ensure assessments reflect current market values and typically occur every 4-8 years depending on state requirements and local policy.

Q: How can I appeal my property assessment? A: Property assessment appeals must be filed during the designated appeal period, typically within 30 days of receiving your assessment notice. Contact the Montgomery County Board of Equalization and Review for appeal forms and procedures.

Q: What penalties apply for late property tax payments? A: Property taxes not paid by the October 1st due date incur interest and penalties. Interest begins accruing immediately after the due date, and additional penalties may apply for severely delinquent accounts.

Q: Can I pay my property taxes online? A: Contact Montgomery County Tax Collector's office to inquire about online payment options and accepted payment methods. Many North Carolina counties offer online payment systems for property taxes.

Q: How do special district taxes work in Montgomery County? A: Properties located within special taxing districts (fire districts, municipalities, or service districts) pay additional taxes beyond the base county rate of 0.63%. Your total effective tax rate depends on which districts serve your property location.

Q: What happens if I disagree with a supplemental tax assessment? A: Supplemental tax assessments can be appealed through the same process as regular assessments. You typically have 30 days from the supplemental bill date to file an appeal with the appropriate county board.

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