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North Carolina
By the Numbers

North Carolina Below is a snapshot of key features of North Carolina's tax system. (Scroll Down)
State & Local Revenue (FY10)
  • General Revenue, Own-Source (GROS): $50.0 billion
  • General Revenue as a Share of Income: 15.3%
  • Tax Revenue: $32.7 billion
  • Tax Revenue as Share of income: 10.0%
  • Personal Income Tax (Share of Tax Revenue): 27.9% (6 out of 51)
  • Corporate Income Tax (Share of Tax Revenue): 4.0 % ( 11 out of 51)
  • Sales & Excise Tax (Share of Tax Revenue): 36.0 % ( 22 out of 51)
  • Property Tax (Share of Tax Revenue): 26.2 % ( 40 out of 51)
  • Other Taxes (Share of Tax Revenue): 4.1 % (31 out of 51)
Personal Income Tax Features (2012)
  • Range of Tax Rates: 6.0% - 7.75%
  • Standard Deduction: $3,000 ($6,000 for Married Couples)
  • Personal Exemption: $2,500
  • Dependent Exemption: $2,500
  • Earned Income Tax Credit (EITC): 5% Refundable
  • Personal exemption phases out for high income levels
Corporate Income Tax Features (2012)
  • Range of Tax Rates: 6.90%, eventually falling as low as 3% by 2017
  • Income Level at Which Top Rate Applies: All
  • Combined Reporting: No
  • Apportionment Factor (Payroll): 25%
  • Apportionment Factor (Property): 25%
  • Apportionment Factor (Sales): 50%
Sales Tax Features (2012)
  • State Sales Tax Rate: 4.75
  • Average Local Sales Tax Rate: 2.15%
  • Average Combined State & Local Sales Tax Rate: 6.90%
  • State Sales Tax Treatment of Groceries: Exempt
  • Local Sales Tax Treatment of Groceries: Taxed
  • Number of Services Taxed: 57 out of 168 surveyed (2007)
  • Streamlined Sales Tax Membership: Full
  • "Amazon law" in effect
  • Sales tax holiday offered in 2013
  • Sales tax applies to digital goods and services
Property Tax Features (2012)
  • Does not provide a meaningful homestead exemption or circuit breaker for non-elderly taxpayers.
  • Levies a car tax.
  • Comparatively low property taxes.
Other Tax & Revenue Features (2012)
  • Gasoline Tax Rate (per gallon): $0.379
  • Diesel Tax Rate (per gallon): $0.379
  • Cigarette Tax Rate (per pack): $0.45
  • Estate or Inheritance Tax: No
  • Net Lottery Sales Per Capita: $139 (2010)
Tax Policy Oversight
  • Tax Expenditure Report: Yes
  • Tax Incidence Analysis Capability: Personal income tax only

Last Updated October 4, 2012

Sources & Glossary