Taxes in North Carolina

Each state’s tax code is a multifaceted system with many moving parts, and North Carolina is no exception. The first step towards understanding North Carolina’s tax code is knowing the basics.

How does North Carolina rank?  Below, we have highlighted a number of tax rates, ranks, and measures detailing North Carolina’s income tax, business tax, sales tax, and property tax systems. Click the tabs below to explore!

Top Individual Income Tax Rate

5.25%

See Full Study

State and Local Individual Income Tax Collections per Capita

$1177

Click for a comparative tax map!

State and Local Tax Burden

9.8%

Click for a comparative tax map!
See Full Study

Top Corporate Income Tax Rate

2.5%

See Full Study

State Business Tax Climate Index Ranking

15

See Full Study

State Sales Tax Rate

4.75%

Click for a comparative tax map!
See Full Study

Average Local Sales Tax Rate

2.23%

See Full Study

Combined State and Average Local Sales Tax Rate

6.98%

Click for a comparative tax map!
See Full Study

State and Local General Sales Tax Collections per Capita

$771

Click for a comparative tax map!

State Gasoline Tax Rate (cents per gallon)

36.35¢

Click for a comparative tax map!

State Cigarette Tax Rate (dollars per 20-pack)

$0.45

Click for a comparative tax map!

Property Taxes Paid as a Percentage of Owner-Occupied Housing Value

0.85%

Click for a comparative tax map!

State and Local Property Tax Collections Per Capita

$974

Click for a comparative tax map!

Featured Articles

Top Rates in Each State Under Joe Biden’s Tax Plan

October 20, 2020

State Tax Changes Effective July 1, 2020

July 9, 2020

A Visual Guide to Unemployment Benefit Claims

April 2, 2020

Facts and Figures 2020: How Does Your State Compare?

February 13, 2020

Tax Trends at the Dawn of 2020

January 6, 2020

Tax Changes Taking Effect January 1, 2019

December 27, 2018


Related Articles

2021 State Business Tax Climate Index

Top Rates in Each State Under Joe Biden’s Tax Plan

New Census Data Shows States Beat Revenue Expectations in FY 2020

State Tax Changes Effective July 1, 2020

A Visual Guide to Unemployment Benefit Claims

March 24th Morning State Tax Update

Facts and Figures 2020: How Does Your State Compare?

Tax Trends at the Dawn of 2020

Despite Budget Standoff, North Carolina Implements Sales Tax Base Expansion

North Carolina’s Vetoed Budget Includes Good Tax Provisions

Will North Carolina Reduce its Franchise Tax?

Facts and Figures 2019: How Does Your State Compare?

North Carolina Judge Strikes Down Income Tax Cap Constitutional Amendment

Tax Changes Taking Effect January 1, 2019

Results of 2018 State and Local Tax Ballot Initiatives

Top State Tax Ballot Initiatives to Watch in 2018

2019 State Business Tax Climate Index

Is Every Tax Cut Kansas?

Help from Our Friends: What States Can Learn from Tax Reform Experiences across the Country

North Carolina Continues its Successful Tax Reforms