North Carolina

What's New



By the Numbers

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 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
  • "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