When the tax costs of operating in New York are only a fifth of the cost of locating the same operation in Wyoming, something unusual is going on. Yet that’s exactly what we find for new research and development (R&D...
The facts on North Carolina’s Tax Climate
5.75%Individual Income TaxFlat rate
5%Corporate Income TaxFlat rate
$917Property Tax CollectionsPer Capita
North Carolina's Individual Income Tax System
North Carolina's personal income tax system consists of a flat rate of 5.75%. That rate ranks 25th highest among states levying an individual income tax. North Carolina's state and local income tax collections per person were $1071 in 2012 which ranked 17th 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 5%. That rate ranks 12th lowest among states levying a corporate income tax. North Carolina's state and local corporate income tax collections per person were $126 in 2012 which ranked 25th 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 5.95%. The average local sales tax rate is an additional 2.15%. North Carolina's state and local governments collect $806 per person in general sales taxes and $437 per person in excise taxes, for a combined figure of $1243, which ranks 10th lowest nationally. North Carolina's gasoline tax stands at 37.8¢ (6th 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 $917 per person in property taxes in 2012, which ranks 12th lowest nationally.
State and local property tax collections per capita by state
Tax Freedom Day Arrives on April 14th 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 2014, North Carolina taxpayers worked until April 14th (23rd earliest nationally) to pay their total tax bill. The Tax Freedom Days of neighboring states are: Tennessee, April 5th (ranked 4th earliest nationally); Georgia, April 12th (ranked 17th earliest nationally); South Carolina, April 9th (ranked 8th earliest nationally); and Virginia, April 24th (ranked 11th latest nationally).
North Carolina's State and Local Tax Burden In Line with National Average
North Carolina's 2011 tax burden of 9.8% ranks 17th highest out of 50 states, and is below the national average of 9.8%. North Carolina's taxpayers pay $3564 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 2015 Business Tax Climate Index Ranks 16
North Carolina ranks 16th 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, 36th, South Carolina, 37th, and Virginia, 27th.
State Business Tax Climate Index (full study)
North Carolina Info
Join the Tax Foundation's fight for sound tax policy Go
Tax By State
For information on your state, select it from the drop-down menu.