North Carolina
What's New
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ITEP Work in Action
April 16, 2018NC Justice Center: North Carolina’s Upside Down Tax Code
Tax season comes to a close this week, and Tax Day serves as a good time to reflect on who pays taxes in North Carolina. The income tax is, naturally,…
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ITEP Work in Action
August 25, 2017NC Policy Watch: In N.C., 42% of Trump’s proposed tax cuts would go to the few making more than $1 million
A newly released report confirms that the White House is not really interested in tax reform that helps “ordinary Americans”. Instead, under President Trump’s proposed tax cut plan, “ordinary Americans” will…
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ITEP Work in Action
August 21, 2017Budget and Tax Center: Costly Tax Cuts in New State Budget Continue Precarious Road Ahead for North Carolina
The new two-year state budget passed by lawmakers included another package of tax cuts that will further limit the amount of revenue available for public investments. The latest tax cuts…
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blog
June 28, 2017State Rundown 6/28: States Scramble to Finish Budgets Before July Deadlines
This week, several states attempt to wrap up their budget debates before new fiscal years (and holiday vacations) begin in July. Lawmakers reached at least short-term agreement on budgets in… -
blog
June 21, 2017State Rundown 6/21: Crunch Time for Many States with New Fiscal Year on Horizon
This week several states rush to finalize their budget and tax debates before the start of most state fiscal years on July 1. West Virginia lawmakers considered tax increases as… -
ITEP Work in Action
June 21, 2017Failed Tax-Cut Experiment (in North Carolina) Will Continue Under Final Budget Agreement, Pushes Fiscal Reckoning Down the Line
The final budget agreement from leaders of the House and Senate puts North Carolina on precarious fiscal footing, The tax changes that leaders agreed to—which were less a compromise and…
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blog
May 31, 2017State Rundown 5/31: Budget Woes Spurring Special Legislative Sessions
This week, special legislative sessions featuring tax and budget debates are underway or in the works in Kentucky, Minnesota, New Mexico, and West Virginia, as lawmakers are also running up… -
ITEP Work in Action
May 26, 2017The Cost Of Trickle-Down Economics For North Carolina
Since 2013, state lawmakers have passed significant income tax cuts that largely benefit the state’s highest income earners and profitable corporations. These costly tax cuts have made the state’s tax… -
ITEP Work in Action
May 3, 2017The Progressive Pulse: Young Undocumented Immigrants’ Tax Contributions Would Drop by Nearly Half Without the Protection of the DACA Program
Young immigrants eligible for DACA (Deferred Action for Childhood Arrivals) annually contribute $2 billion in state and local taxes, according to new analysis from the Institute on Taxation and Economic…
Related Resources
ITEP Publications about North Carolina
Reports about North Carolina using ITEP data
All items referencing North Carolina
By the Numbers
| Personal Income Tax Features (2015) | |
|---|---|
| Range of Tax Rates | 5.75% |
| Standard Deduction |
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| Personal Exemption | None |
| Dependent Exemption | None |
| Earned Income Tax Credit (EITC) | None |
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| Corporate Income Tax Features (2015) | |
|---|---|
| Range of Tax Rates | Provides child tax credit that phases out for upper-income taxpayers |
| Income Level at Which Top Rate Applies | Limits itemized deductions to $20,000 of property tax and mortgage interest plus unlimited charitable contributions |
| Combined Reporting | 5.00%, eventually falling as low as 3% by 2017 |
| Apportionment Factor (Payroll) | All |
| Apportionment Factor (Property) | No |
| Apportionment Factor (Sales) | 25% |
| 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 |
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| Property Tax Features (2015) | |
|---|---|
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| 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
RESOURCES
State Tax & Revenue Information
- North Carolina Department of Revenue Reports and Statistics
- North Carolina Office of State Budget and Management