For more on corporate taxes, see Kyle's recent study "U.S. Multinationals Paid More Than $100 Billion in Foreign Income Taxes."
The facts on North Carolina’s Tax Climate
7.75%Individual Income TaxTop rate
6.9%Corporate Income TaxFlat rate
$902Property Tax CollectionsPer Capita
North Carolina's Individual Income Tax System
North Carolina's personal income tax system consists of three brackets and a top rate of 7.75%. That rate ranks 10th highest among states levying an individual income tax. North Carolina's income tax collections per person were $961 in 2010 which ranked 18th highest nationally.
50-State Table of Individual Income Tax Rates
50-State Table of State Individual Income Tax Collections
50-State Table of State and Local Individual Income Tax Collections Per Capita
North Carolina's Corporate Income Tax System
North Carolina's corporate income tax system consists of a flat rate of 6.9%. That rate ranks 24th lowest among states levying an corporate income tax. North Carolina's corporate tax collections per person were $136 in 2010 which ranked 15th highest nationally.
50-State Table of Corporate Income Tax Rates
50-State Table of State and Local Corporate Income Tax Collections Per Capita
50-State Table of State Corporate Income Tax Collections Per Capita
North Carolina Sales and Excise Taxes
North Carolina levies a 4.75% general sales or use tax on consumers, which is below the national median of 6%. The average local sales tax rate is an additional 2.12%. North Carolina's state and local governments collect $837 per person in general sales taxes and $402 per person in excise taxes, for a combined figure of $1238, which ranks 16th lowest nationally. North Carolina's gasoline tax stands at 37.8¢ (8th highest nationally), while its cigarette tax stands at $0.45 (7th lowest nationally.)
50-State Table of State and Local General and Selective Sales Tax Collections Per Capita
North Carolina Property Tax Collections Relatively Low
North Carolina's state and local governments collected approximately $902 per person in property taxes, which ranks 13th lowest nationally.
State and local property tax collections per capita by state
Tax Freedom Day Arrives on April 10th in North Carolina
Tax Freedom Day is the day when Americans finally have earned enough money to pay off their total tax bill for the year. In 2013, North Carolina taxpayers worked until April 10th (21st earliest nationally) to pay their total tax bill. The Tax Freedom Days of neighboring states are: Tennessee, April 2nd (ranked 3rd earliest nationally); Georgia, April 9th (ranked 18th earliest nationally); South Carolina, April 3rd (ranked 4th earliest nationally); and Virginia, April 20th (ranked 10th latest nationally).
North Carolina's State and Local Tax Burden In Line with National Average
North Carolina's 2010 tax burden of 9.91% ranks 17th highest out of 50 states, and is above the national average of 9.9%. North Carolina's taxpayers pay $3535 per capita in state and local taxes.
North Carolina's State-Local Tax Burden, 1977-Present
Other States' State/Local Tax Burdens
Map of U.S. Showing all State's Burdens and Ranks
Historical Chart Comparing All States' State/Local Tax Burdens from 1977 to 2009
North Carolina's 2013 Business Tax Climate Index Ranks 44
North Carolina ranks 44th in the Tax Foundation's State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes, individual income taxes, sales taxes, unemployment insurance taxes, and taxes on property, including residential and commercial property. The ranks of neighboring states are as follows: Tennessee, 15th, Georgia, 34th, South Carolina, 36th, and Virginia, 27th.
50-State Comparison of Business Tax Climates (data only)
2013 State Business Tax Climate Index (full study)
North Carolina Info
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