North Carolina has a fixed state income tax rate of 5.25%, which is below the national average. The new law introduced a fixed-rate income tax and more than doubled the standard deduction for North Carolina taxpayers. In addition to the state rate, each county applies an additional tax. The state also has a sales tax rate of 4.75 percent, with a maximum local sales tax rate of 2.75 percent and a combined average state and local sales tax rate of 6.98 percent.
This makes North Carolina one of the most competitive states for corporations in the United States when it comes to collecting corporate taxes. Nathan Goldman, Poole College of Management adjunct professor of accounting, explains the impact for North Carolina corporations. The state's tax code is complex, and a financial advisor in North Carolina can help you understand how taxes fit your overall financial goals. North Carolina has been praised for its technology-ready workforce, world-class universities, quality of life, and friendly business regulatory environment.
The effective average property tax rate for the state is below the national average at 0.77%. Under North Carolina law, anyone who “possesses an unauthorized substance” must pay an excise tax within 48 hours. This includes marijuana, cocaine, moonshine, mashed potatoes and illicit mixed drinks. In conclusion, North Carolina has a fixed state income tax rate of 5.25%, with each county applying an additional tax.
The state also has a sales tax rate of 4.75 percent with a maximum local sales tax rate of 2.75 percent and a combined average state and local sales tax rate of 6.98 percent. Anyone who “possesses an unauthorized substance” must pay an excise tax within 48 hours.
