Durham’s property tax increase for fiscal year 2025–2026 is showing up on bills even though the posted rate looks lower than last year. A countywide revaluation effective January 1, 2025 reset assessed values upward, and both the City of Durham and Durham County set their new rates above the revenue-neutral level, so the typical homeowner inside city limits owes more than the year before. The combined in-city rate is now 99.13 cents per $100 of assessed value, down from $1.3949, but the higher assessments more than offset the lower rate for most properties.
The New Rates for FY 2025–2026
The current rates took effect July 1, 2025 and run through June 30, 2026:
- City of Durham: 43.71 cents per $100 of assessed value
- Durham County: 55.42 cents per $100 of assessed value
- Combined rate inside city limits: 99.13 cents per $100
If your property sits in unincorporated Durham County, you pay only the county portion of 55.42 cents per $100.1Durham County Government. Tax Rates
Why Your Bill Went Up When the Rate Went Down
Two things happened at once. First, Durham County reappraised every parcel of real property as of January 1, 2025.2Durham County Government. 2025 General Reappraisal Revaluation Since the local market has appreciated significantly since the last cycle, most assessed values climbed. When assessments rise across the board, a lower per-$100 rate can still raise the same total revenue. That break-even rate is called the revenue-neutral rate.
Second, neither the city nor the county adopted the revenue-neutral rate. The City Council set its rate at 43.71 cents, which is 5.48 cents above the revenue-neutral figure of 38.23 cents.3City of Durham. City Council Approves Budget Investing in Community Safety So you’re paying a lower-looking rate on a higher assessed value, and the rate itself is set to collect more than last year. For most homeowners, the result is a bigger bill.
How to Figure Out What You Owe
Look up your current assessed value on the Durham County Tax Administration website. Then:
- Divide your assessed value by 100.
- Multiply the result by your tax rate: $0.9913 if you’re inside city limits, $0.5542 if you’re in unincorporated county.
For a home assessed at $350,000 inside the city: $350,000 ÷ 100 = 3,500, then 3,500 × $0.9913 = $3,469.55 for the year. The same home in unincorporated Durham County would owe 3,500 × $0.5542 = $1,939.70.1Durham County Government. Tax Rates
If your assessed value changed in the 2025 revaluation, any estimate based on last year’s number is out of date. Check the new value before you do the math.
When Payment Is Due and What Late Costs
Property taxes are due September 1. You can pay at face value, with no interest, as long as your payment arrives by January 5, 2026.4Durham County Government. Tax Payment Deadline Approaching for Durham County Residents5North Carolina General Assembly. North Carolina Code 105-360 – Due Date and Interest for Nonpayment of Taxes After that:
- January 6 through February 1: 2% interest on the unpaid balance
- After February 1: an additional 0.75% interest per month until paid in full
Unpaid taxes become a lien on your property. The county advertises delinquent liens between March 1 and June 30, and if the debt remains unpaid, the county can pursue foreclosure and force a sale to satisfy the debt.6North Carolina General Assembly. North Carolina Code Chapter 105 Article 26 – Collection and Foreclosure of Taxes on Property A small unpaid balance can turn into a serious problem fast, so missing the deadline isn’t a minor cost.
Relief Programs That Can Lower What You Owe
North Carolina runs three property tax relief programs that Durham residents apply for through the Durham County Tax Administration office. You generally can’t combine them, so pick the one that saves you the most.
Elderly or Disabled Homestead Exclusion
This program excludes the greater of $25,000 or 50% of your home’s appraised value from taxation. You must be 65 or older, or totally and permanently disabled, as of January 1 of the tax year, and your household income for the prior calendar year must fall at or below the state limit. For the 2025 tax year that limit was $37,900, and it adjusts annually with Social Security cost-of-living increases.7North Carolina General Assembly. North Carolina Code 105-277.1 – Elderly or Disabled Property Tax Homestead Exclusion8North Carolina Department of Revenue. Application for Property Tax Relief Confirm the current year’s figure with the county before applying.
Disabled Veteran Homestead Exclusion
Veterans with a permanent, total, service-connected disability certified by the U.S. Department of Veterans Affairs can exclude the first $45,000 of appraised value. Unmarried surviving spouses of qualifying veterans also qualify. There is no income limit, but you cannot stack this benefit with the elderly or disabled exclusion.9North Carolina General Assembly. North Carolina Code 105-277.1C – Disabled Veteran Property Tax Homestead Exclusion10North Carolina Department of Military and Veterans Affairs. Veterans Property Tax Relief
Circuit Breaker Tax Deferment
Instead of excluding value, the circuit breaker caps your yearly bill as a share of your income. You must be 65 or totally and permanently disabled, and you must have owned and lived in the home for at least five consecutive years. Based on 2025 tax year figures:
- Income at or below $37,900: taxes capped at 4% of income
- Income above $37,900 but at or below $56,850: taxes capped at 5% of income
Read this one carefully before applying. The amount you don’t pay isn’t forgiven. It becomes a lien on your property, and the last three years of deferred taxes come due when you sell, move out, or die without a qualifying spouse remaining in the home.11North Carolina General Assembly. North Carolina Code 105-277.1B – Property Tax Homestead Circuit Breaker8North Carolina Department of Revenue. Application for Property Tax Relief
Appealing Your Assessed Value
If the county’s number looks higher than what your home would actually sell for, you can challenge it. Mass revaluations get individual properties wrong fairly often, so an appeal is worth considering if your assessment seems off.
Start with the Durham County Board of Equalization and Review. You can file online through the tax administration portal or submit a paper form. Appeals must be filed before the board adjourns for the year; the 2026 deadline is 5:00 p.m. on June 17, 2026.12Durham County Government. Appealing Your Property Value
Evidence is what wins these appeals. Recent sales of comparable homes in your neighborhood are the strongest tool: if similar properties sold for less than your assessed value, that gap is your argument. An independent appraisal from a licensed appraiser also carries weight, as do photos of condition issues the county’s valuation didn’t account for.
If the local board doesn’t resolve things, the next step is the North Carolina Property Tax Commission in Raleigh, which conducts a more formal review of the evidence and the county’s valuation procedures.13North Carolina Department of Revenue. Property Tax Appeal Process It takes more paperwork and more time, so it’s generally worthwhile only when the dollars at stake justify the effort. A professional appraisal for an appeal typically runs several hundred to over a thousand dollars, which can pay for itself across multiple years of lower bills if the assessment is meaningfully off, but is hard to justify for a small valuation gap.
What to Expect From Your Mortgage Escrow
If your mortgage escrows property taxes, your monthly payment will likely change. Your servicer is required to run an annual escrow analysis and tell you about any shortage between what has been collected and what is owed.14Consumer Financial Protection Bureau. Escrow Accounts When taxes go up, the servicer raises your monthly escrow deposit and may also ask you to make up the current year’s shortfall. Federal rules let you spread that shortage repayment over 12 months rather than paying it in one lump.
You should receive a written escrow analysis within 30 days of the end of your escrow computation year. Read it carefully in a revaluation year. If the servicer calculated your new escrow using the old assessed value, your account will fall short again next year and you’ll get hit with another shortage. Catching that early saves you a second round of payment increases.