Taxes in North Carolina

North Carolina Tax Rates, Collections, and Burdens

How does North Carolina’s tax code compare? North Carolina has a flat 4.99 percent individual income tax rate. North Carolina also has a 2.50 percent corporate income tax rate. North Carolina has a 4.75 percent state sales tax rate, a max local sales tax rate of 2.75 percent, and an average combined state and local sales tax rate of 6.98 percent. North Carolina’s tax system ranks 11th overall on our 2022 State Business Tax Climate Index.

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 collect tax revenue? Click the tabs below to learn more! You can also explore our state tax maps, which are compiled from our annual publication, Facts & Figures: How Does Your State Compare?

Lunch Links: Buffett Challenges Trump Over Tax Returns; North Carolina Surplus Triggers Tax Cut; The Story of New York’s Wooing GE

August 2, 2016

Lunch Links: North Carolina Boosts Standard Deduction; Bag Tax Impact Mixed; July State Tax Changes

July 5, 2016

State Tax Changes Taking Effect July 1, 2016

June 30, 2016

Lunch Links: Social Security Gap; Kansas Borrows $900M; Tax Prom Featured on CBS Show

June 23, 2016

Lunch Links: PA Gov Drops Tax Plans; Alaska Legislature to Meet Again; NC Couple Stole Tax Refunds from 300 People

June 22, 2016

Lunch Links: French Raid Google, Castles and Property Taxes, and the “Federal Student Tax”

May 25, 2016

Lunch Links: IRS Impeachment, State Tax Updates, and Why the California Teamsters Oppose Marijuana Legalization

May 24, 2016

Lunch Links: April 29, 2016

April 29, 2016

North Carolina Illustrated: A Visual Guide to Tax Reform

November 5, 2015

North Carolina Budget Compromise Delivers Further Tax Reform

September 17, 2015

Ten Years of the North Carolina Lottery (and Why It’s In Part a Tax)

August 11, 2015

New Paper Analyzing Further North Carolina Tax Reform This Session

June 16, 2015

North Carolina Proposal Builds on Landmark 2013 Reform

June 15, 2015

North Carolina Tax Revenue Exceeding Expectations Following Tax Cuts

May 8, 2015

Taxes in Many States Changing January 1, 2015

December 31, 2014

Economic Development Officials Call for Special Tax Incentive Session in North Carolina

September 9, 2014

North Carolina Builds on Tax Reform, Repealing Burdensome Local Privilege Taxes

June 5, 2014

North Carolina’s E-Cigarette Tax Proposal

May 27, 2014

Fiscal Times Features Best and Worst States for Taxes

January 29, 2014

2013 Outstanding Achievement in State Tax Reform

January 7, 2014