Many people are beginning to wrap their minds around the House Republicans’ proposed destination-based cash-flow tax and what it means for tax reform. Most people are still looking into the tax’s impacts on trade and how...
The facts on North Carolina’s Tax Climate
5.75%Individual Income TaxFlat rate
4%Corporate Income TaxFlat rate
$903Property Tax CollectionsPer Capita
North Carolina's Individual Income Tax System
North Carolina's individual 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 tax collections per person were $1124 in 2013, 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 4%. That rate ranks 44th highest among states levying a corporate income tax. North Carolina's state and local corporate income tax collections per person were $131 in 2013 which ranked 27th 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 2.2%. North Carolina's state and local governments collect $795 per person in general sales taxes and $447 per person in excise taxes, for a combined figure of $1,242, which ranks 40th highest nationally. North Carolina's gasoline tax stands at 35.25 cents per gallon, 8th highest nationally, while its cigarette tax stands at $0.45, 46th highest 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 $903 per person in property taxes in 2013, which ranks 39th nationally.
State and local property tax collections per capita by state
Tax Freedom Day Arrives on April 16th in North Carolina
Tax Freedom Day is the day when Americans have finally earned enough money to pay off their total tax bill for the year. In 2016, North Carolina taxpayers have to work until April 16th (19th earliest nationally) to pay their total tax bill.
North Carolina's State and Local Tax Burden Ranks 20th
North Carolina's 2012 tax burden of 9.8% ranks 20th highest in the nation, and is below the national average of 9.9%. North Carolina's taxpayers pay $3,659 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 2016 Business Tax Climate Index Ranks 15th
North Carolina ranks 15th on the Tax Foundation's State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes (7th), individual income taxes (14th), sales taxes (31st), unemployment insurance taxes (11th), and taxes on property (32nd), including residential and commercial property.
State Business Tax Climate Index (full study)
North Carolina Info
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