The NC Property Tax Levy Limit Amendment, Explained

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Last updated: October 30, 2026

The property tax amendment on North Carolina's Nov. 3, 2026 ballot would require the General Assembly to pass laws limiting how much the total property tax levy of local governments can grow. On its own, it does not set a number, and it does not put a cap on any one homeowner's tax bill; those details would come from laws the legislature writes later.

This guide shows the exact ballot wording, what the change to the state constitution says, and what a levy limit is. We do not take a position on the amendment. This is general information, not legal or tax advice.

What the ballot says

Voters will see this question in the referenda section of the ballot, with a choice of For or Against:

"Constitutional amendment requiring limits on property tax increases by local governments."

The question comes from Session Law 2026-5 (House Bill 1089), which the General Assembly ratified on May 21, 2026. You can see your own ballot through the NC State Board of Elections sample ballot lookup.

What the amendment would add to the NC Constitution

The amendment adds one sentence to Article V, Section 2(5) of the NC Constitution:

"The General Assembly shall enact general laws limiting the amount by which the levy of taxes on property may increase, which may include exceptions."

The official summary prepared by the General Assembly's nonpartisan Legislative Services Officer says: "This amendment to the North Carolina Constitution would require the General Assembly to set limits on property tax increases by local governments."

If most votes are For, the amendment takes effect once the State Board of Elections certifies the result. If most votes are Against, the session law says the amendment "shall have no effect."

What a levy limit is

A levy is the total amount of property tax a local government, such as a county, city or town, plans to collect in a year. A levy limit caps how much that total can grow from one year to the next.

Orange County's explainer gives a simple example: if a county levies $100 million and has a 3% levy limit, the next year it could budget up to $103 million in property taxes. Read Orange County's levy limit page.

The legislature's Fiscal Research Division describes the amendment the same way: it would require limits on how much county and city property tax revenue can increase. Read the fiscal note.

Does it cap my tax bill or my town's revenue?

The amendment's wording points to the levy, which is a local government's total. It does not say anything about an individual bill. Here is why that difference matters:

• Your bill is figured from your value and the rates. Each local government you pay sets a rate per $100 of assessed value. Your bill is your assessed value times each of those rates. Many Triangle homeowners pay a county rate plus a city or town rate, and some pay a special district rate too.
• A total can stay level while single bills change. Under a limit on the total levy, a homeowner's share still depends on their own assessed value and the rates set. That is why a levy limit and a cap on your bill are not the same thing.
• The design is not decided yet. The UNC School of Government notes the amendment leaves it to the General Assembly to choose the type of limit. Its examples from other states include limits on yearly increases in appraised values, on tax rates, or on total levies. Read the UNC School of Government post.
• Exceptions are allowed. The amendment says the laws "may include exceptions," but it does not name any.

What the amendment does not do on its own

Based on its text and the official sources above, the amendment by itself does not:

• Set a percentage, dollar amount or formula. The fiscal note says those details would come in later legislation.
• Say how inflation, population growth, new construction, debt or emergencies would be treated. Orange County's page lists these as open questions.
• Set a date for the limits to start. The UNC School of Government says the timing would be up to the General Assembly.
• Change your current tax bill, your assessed value or a county's revaluation schedule.
• Change the state's property tax relief programs or the property tax appeal process.

What limits exist today

North Carolina law already caps local property tax rates for most purposes at $1.50 per $100 of value for counties (G.S. 153A-149(c)) and for cities (G.S. 160A-209(d)). The cap applies to each unit separately. Taxes approved by a vote of the people do not count toward the city cap.

In a year after a revaluation, local budgets must also show a revenue-neutral rate for comparison (G.S. 159-11(e)). That is a disclosure rule, not a limit.

The UNC School of Government notes that, other than the $1.50 rate cap, current law has no limit on how much a local government's levy can grow from year to year. It also notes the General Assembly can already pass limits by ordinary law, whether or not the amendment passes.

Two tax amendments are on the same ballot

A separate amendment, from Session Law 2026-4, deals with the state income tax, not property tax. Its ballot question reads: "Constitutional amendment to keep the State income tax rate from being raised higher than three and one-half percent (3.5%)." The two are separate questions, and each is decided on its own.

Voting dates

According to the NC State Board of Elections, in-person early voting runs from Oct. 15 through Saturday, Oct. 31, 2026, and ends at 3 p.m. on Oct. 31. Election Day is Tuesday, Nov. 3, 2026, with polls open from 6:30 a.m. to 7:30 p.m.

Frequently asked questions

Does the NC property tax amendment cap my property tax bill?

Not by itself. The amendment requires the General Assembly to pass laws limiting how much the property tax levy can increase. It does not set a cap on any one bill, and the type of limit would be decided in later laws.

What is the exact ballot wording?

"Constitutional amendment requiring limits on property tax increases by local governments." Voters choose For or Against. The wording comes from Session Law 2026-5.

What is a property tax levy?

It is the total amount of property tax a local government plans to collect in a year. A levy limit caps how much that total can grow from one year to the next.

If the amendment passes, how much would the limit be?

The amendment does not say. The General Assembly's fiscal note says the limit and how it is measured would be set in later legislation.

When would a limit start?

The amendment takes effect when the result is certified, but it does not set a date for limits to begin. The timing would be up to the General Assembly.

What happens if the amendment does not pass?

Session Law 2026-5 says it would have no effect. The UNC School of Government notes the General Assembly could still pass property tax limits by ordinary law.

Are there any limits on NC local property taxes now?

Yes. State law caps county and city rates for most purposes at $1.50 per $100 of value, for each unit separately. There is no current limit on year-to-year levy growth beyond that.

Is this the same as the income tax amendment?

No. A separate amendment on the same ballot would keep the state income tax rate from being raised above 3.5%. It does not deal with property taxes.

Questions about property taxes when you buy or sell?

Our founder, Tina Caul, has been in real estate since 2001. Property taxes are part of every home budget, and we can help you find a home's current tax record and rates before you make an offer or set a price. For legal or tax questions, talk with a qualified professional.

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