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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)
Personal Income Tax Features (2015)
  • Range of Tax Rates: 5.75%
  • Standard Deduction: $7,500 ($15,000 for Married Couples)
  • Personal Exemption: None
  • Dependent Exemption: None
  • Earned Income Tax Credit (EITC): None
  • Flat income tax rate structure
  • Provides child tax credit that phases out for upper-income taxpayers
  • Limits itemized deductions to $20,000 of property tax and mortgage interest plus unlimited charitable contributions
Corporate Income Tax Features (2015)
  • Range of Tax Rates: 5.00%, 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 (2015)
  • 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 applies to digital goods and services
  • Sales tax applies to digital goods and services
Property Tax Features (2015)
  • 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 (2015)
  • Gasoline Tax Rate (per gallon): $0.378
  • 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 January 13, 2015

Sources & Glossary