Revenue Neutral Tax Calculator
Effective January 1, 2024 all real property in Wake County was revalued at 100% fair market value. The prior assessed value represented 100% fair market value as of January 1, 2020.
The purpose of the revaluation is to re-establish tax equity and fairness between properties that may have changed in value at different rates depending on property type and location.
Wake County currently operates on a four-year revaluation cycle. State law requires the calculation of a revenue neutral tax rate. Revenue neutral is a budget term that means the revenue brought in by property taxes in a revaluation year would be approximately the same as if the revaluation had not taken place. It is computed by increasing the fiscal year 2023-2024 jurisdictional operating budget by the average annual growth in the tax base since the 2020 revaluation, then dividing the result by the revalued tax base. The revenue neutral rate is not property-specific. This revenue neutral rate serves as the starting point for fiscal year 2024-2025 budget deliberations and must be reported in the fiscal year 2024-2025 operating budget, but it may not ultimately be adopted.
Changes in tax liability for individual properties depend on two factors:
- 1. How much the property changed in value between 2020 and 2024, and
- 2. The final tax rates adopted by each taxing jurisdiction in June 2024.