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Updated 2025 Tax Year

Orange County
Property Tax Guide

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

10 Official Sources
8 min read
Quick Facts
Tax Rate
0.64% base rate (63.83¢/$100), varies by district with special assessments and municipal additions
Exemptions
4+ Available
Section 1

How Property Tax Works

Orange County, North Carolina operates under a property tax system that serves as the primary funding mechanism for essential county services including schools, public safety, infrastructure maintenance, and community programs. The county assesses property taxes based on the current market value of real estate, with the tax rate expressed as cents per $100 of assessed value. For the 2025-2026 fiscal year, the base county tax rate is 63.83 cents per $100 of assessed value.

Property owners should note that actual tax rates vary significantly by location within Orange County due to special taxing districts, municipal boundaries, and additional assessments for services like fire districts or special improvement areas. The effective tax rate typically ranges from the base county rate to higher rates when municipal and special district taxes are included. Unlike some states, North Carolina does not impose a statewide assessment cap, allowing property values to be reassessed at full market value during revaluation cycles.

Section 2

What Makes Up Your Tax Bill

ComponentRate (per $100)Description
Orange County Base$0.6383Core county services, schools, general operations
Municipal Rates*VariesAdditional rates for incorporated areas
Fire DistrictsVariesSpecial assessments for fire protection services
Special DistrictsVariesAdditional assessments for specific improvement areas

*Municipal tax rates vary by jurisdiction and are added to the county rate. These rates apply to the 2025-2026 fiscal year and are subject to annual review by the Board of Commissioners. Property owners receive separate bills or combined statements depending on their location and applicable taxing districts. Always verify current rates with the Orange County Tax Administration Office as special district boundaries and rates can change.

Section 3

When Are Property Taxes Due?

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

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 property taxes in Orange County are additional assessments that occur outside the regular annual billing cycle. These are typically triggered by significant events such as new construction completion, major property improvements, subdivision of land, or ownership changes that affect the property's assessed value mid-year. When supplemental taxes are levied, they cover the difference between the old assessment and new assessment for the remaining portion of the current tax year.

For example, if a property owner completes a $100,000 home addition in March and the county assesses this improvement, they would receive a supplemental bill covering the increased tax liability from the completion date through the end of the current fiscal year. The calculation would be: ($100,000 × 0.006383) × (remaining months ÷ 12) = supplemental tax owed. Property owners have the same payment options and appeal rights for supplemental assessments as regular property tax bills.

Example Calculation

Example 1: $300,000 Property Value

  • Assessed Value: $300,000
  • Homestead Exemption Applied: -$7,000 (requires application)
  • Net Taxable Value: $293,000
  • Annual Tax: $293,000 × 0.006383 = $1,870.22
  • Monthly Escrow: $155.85

Example 2: $600,000 Property Value

  • Assessed Value: $600,000
  • Homestead Exemption Applied: -$7,000 (requires application)
  • Net Taxable Value: $593,000
  • Annual Tax: $593,000 × 0.006383 = $3,785.12
  • Monthly Escrow: $315.43

Example 3: $1,000,000 Property Value

  • Assessed Value: $1,000,000
  • Homestead Exemption Applied: -$7,000 (requires application)
  • Net Taxable Value: $993,000
  • Annual Tax: $993,000 × 0.006383 = $6,342.42
  • Monthly Escrow: $528.54

Note: These examples use the base county rate only. Additional municipal or special district taxes would increase the total. The Homestead Exemption requires annual application by January 31st and saves approximately $45 annually based on current rates.

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Section 5

Escrow & Property Taxes

Most mortgage lenders in Orange County require property tax escrow accounts to ensure timely payment of property taxes. Lenders typically collect 1/12th of the estimated annual property tax bill with each monthly mortgage payment, holding these funds in a separate escrow account. Since Orange County property taxes are due September 1st each year, lenders usually make the payment directly to the county on behalf of homeowners before this deadline.

Property owners with escrow accounts should review their annual escrow analysis statement carefully, as changes in assessed values or tax rates can result in escrow shortages or surpluses. If your property taxes increase significantly due to revaluation or rate changes, your monthly escrow payment may increase to cover the shortfall. Conversely, successful appeals or exemption applications can result in escrow refunds. Homeowners always retain the right to appeal assessments and apply for available exemptions even when taxes are paid through escrow, though they should notify their lender of any changes that affect the tax liability.

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 property taxes due for the 2025-2026 fiscal year? A: Property taxes are due by September 1st annually. Late payments are accepted until January 5th of the following year, after which penalties and interest apply.

Q: What tax credits are available and do they require application? A: The primary credit is the Homestead Exemption, which exempts $7,000 of assessed value and requires annual application by January 31st. Additional credits may be available for disabled veterans, elderly/disabled persons, and other qualifying circumstances - all requiring separate applications.

Q: How does the Homestead credit work? A: The Homestead Exemption reduces your taxable assessed value by $7,000, saving approximately $45 annually in taxes. It does NOT cap assessment increases - it simply exempts a fixed dollar amount from taxation. You must apply annually by January 31st with the Assessment Division.

Q: How often are properties reassessed? A: Orange County conducts countywide revaluations every 4-8 years. Between revaluations, properties may be individually reassessed due to improvements, sales, or other factors affecting market value.

Q: How do I appeal my property assessment? A: Assessment appeals must be filed with the Board of Equalization and Review during the advertised appeal period following revaluation notices. Contact the Assessment Division for specific deadlines and procedures.

Q: What are the penalties for late payment? A: Interest accrues on unpaid taxes after the January 5th deadline. Additional penalties may apply for taxes remaining unpaid beyond specific dates - contact the Tax Administration Office for current penalty schedules.

Q: Can I pay my property taxes online? A: Yes, Orange County accepts online payments through their official website. Payment options include electronic check, credit card, and ACH transfers, though convenience fees may apply for certain payment methods.

Q: Why did my tax bill change when the tax rate stayed the same? A: Tax bills can change due to property revaluation, completed construction projects, successful exemption applications by other property owners (shifting tax burden), or changes in special district assessments that don't affect the base county rate.

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