North Carolina is a state with a reasonable fiscal climate compared to the rest of the nation. It has a state sales tax rate of 4.75 percent, a maximum local sales tax rate of 2.75 percent, and a combined average state and local sales tax rate of 6.98 percent. Income from a pension, 401 (k), IRA, or any other type of retirement account is taxed at the North Carolina state income tax rate of 5.25%. All Social Security retirement income can be subtracted from your taxable income when you file your North Carolina tax return.
Seniors with significant income from sources other than Social Security will have a higher tax bill in North Carolina. Sales taxes in North Carolina have a base rate on goods and some services of 4.75%, and most counties add another 2% or more to local taxes. North Carolina also imposes a tax on the use of personal property, digital property, and some services purchased out of state for use in the state. Homeowners over the age of 65 or those with disabilities who meet certain income limit requirements can receive breaks on their property taxes in North Carolina.
On the contrary, thanks to a decade of conservative leadership, North Carolina has been a regional leader in reducing the tax burden on its citizens. In general, people living in North or South Carolina enjoy a reasonable fiscal climate compared to the rest of the nation. Compared to the average for all states, North Carolina increases relatively more from individual income taxes and general sales taxes and receives relatively less from property taxes and corporate profits, as well as other taxes and fees. William Neal Reynolds Distinguished Professor and Extension Economist in the Department of Agricultural and Resource Economics at North Carolina State University, Dr.
Walden, teaches and writes about personal finance, economic perspectives, and public policy. He explains that each state's tax code is a multifaceted system with many moving parts, and North Carolina is no exception. When taking into account all taxes imposed by the state, including income taxes, sales taxes, property taxes, and other fees, it is clear that North Carolina's overall tax burden is generally in the middle when compared to other states. Therefore, it can be concluded that North Carolina's taxes are not particularly high when compared to other states.