North Carolina
What's New
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ITEP Work in Action
April 18, 2017North Carolina Justice Center: Prosperity Watch (Issue 72, No 3): Tax cuts since 2013 reinforce racial and ethnic exclusion
Changes to North Carolina’s tax system in recent years have had an impact on the level of available revenue for public investments and shifted tax responsibility among taxpayers. BTC analysis…
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ITEP Work in Action
April 12, 2017The Progressive Pulse: Undocumented immigrants pay their fair share of taxes, too
Tax Day is just around the corner, and this year is no different than any other for countless undocumented immigrants filling tax forms in North Carolina. Current rhetoric on immigration…
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ITEP Work in Action
April 3, 2017NC Policy Watch: What you need to know as the state Senate moves to cut taxes yet again
The North Carolina Senate is moving ahead yet again – perhaps as early as this afternoon – with a new proposal to further reduce state taxes and the revenues they…
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ITEP Work in Action
April 3, 2017The Progressive Pulse: New analysis: Most of NC senate’s “middle class” tax cut would actually flow to the wealthy
BTC’s analysis of SB 325 uses a more robust model developed by the Institute on Taxation and Economic Policy (ITEP), a non-profit, non-partisan organization. ITEP’s microsimulation tax model calculates tax… -
ITEP Work in Action
March 31, 2017The Progressive Pulse: Why cutting taxes for business again makes no sense
When businesses pay their share of taxes, North Carolina is able to invest in the things that build thriving communities and a prosperous economy – things like good schools, roads,… -
ITEP Work in Action
March 19, 2017North Carolina Justice Center: BTC POLICY BASIC: Marginal versus Effective Personal Income Tax Rates
A great deal of confusion abounds in discussions about state personal income tax rates and how they apply to income. This policy basic clarifies the difference between marginal and effective…
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ITEP Work in Action
March 19, 2017North Carolina Justice Center: Still walking the path to zero: The Senate tax plan will harm North Carolina’s goal of building a stronger, inclusive economy
Senate leaders continue to pursue reductions to the income tax rate for wealthy taxpayers and profitable corporations even as they claim to be focused on helping low- and moderate-income taxpayers.… -
ITEP Work in Action
January 6, 2017North Carolina Justice Center: 12 Charts about N.C.’s Economy in 2016
“The economic challenges that face North Carolina families were front and center in 2016. North Carolina wrestled with the disconnect between political rhetoric and everyday reality this election year, thanks… -
ITEP Work in Action
April 11, 2016North Carolina Budget and Tax Center: North Carolina’s “Tax Swap” Gives Biggest Breaks to the Wealthiest, Undermines Public Investments for All
“Efforts to rely more on the state sales tax and less on the income tax to support public services have shifted tax obligations to less affluent North Carolinians, while saving…
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