$9,000 property tax deduction in North Dakota: Deadline extended.

North Dakota homeowners now have two more months to claim a property tax deduction. North Dakota’s property tax deduction is for elderly and disabled homeowners. Qualifying homeowners can receive a credit of up to $9,000.

North Dakota Property Tax Credit: Who Can Get It?

Last week, state Tax Commissioner Brian Kroshus announced an extension to North Dakota’s property tax credit, officially called the Homestead Property Tax Credit program. The deadline was previously February 1, but has now been extended to March 31, 2024.

“The goal is to make the process more user-friendly from a timing perspective and ensure that households eligible to apply can take advantage of the program,” Director Kroshus said in a press release.

To qualify for the property tax deduction in North Dakota, homeowners must be at least 65 years old (the year of application) or permanently and totally disabled. Additionally, homeowners must own and occupy the residential property for which they are applying and must have an annual income of less than $70,000.

Homeowners are not eligible for the credit if they rented the property while the owner was temporarily absent or if the property is a farm structure.

If a couple lives together, only one of them needs to apply. Additionally, only the spouse applying for the tax credit must be 65 years of age or older or permanently and totally disabled.

Homestead Property Tax Deduction: Estimated Credit Amount

North Dakota’s homestead property tax credit reduces a homeowner’s taxable value based on income. Qualifying homeowners with annual incomes of $40,000 or less receive a 100% credit on their property taxes, up to $9,000. Households with annual incomes between $40,000 and $70,000 can receive a 50% credit, with a maximum limit of $4,500.

North Dakota lawmakers expanded the homestead property tax deduction during the last legislative session. Previously, the program was only available to homeowners with annual incomes of $42,000 or less. In 2023, lawmakers changed the income threshold to $70,000 and increased the deduction from $5,625 to $9,000.

Lawmakers also eliminated a requirement that excluded households with more than $500,000 in assets from claiming the homestead property tax credit. The expansion was part of $515 million in income and property tax cuts approved by Congress in 2023.

Last year, lawmakers approved a separate property tax relief program that would help homeowners reduce their property taxes by up to $500. This credit is available to many homeowners and has no age or income restrictions. The last date to claim this property tax credit is March 31.

For more information about the Homestead Property Tax Credit and other property tax credit programs, visit the official North Dakota State website.