North Carolina Low Corporate Tax Rate Ranks 3rd on 2018 National Index
by Think Currituck, on 11/10/17 11:41 AM
North Carolina's pro-business approach to tax reform shows no signs of slowing down.
This year, North Carolina placed at #3 for Corporate Taxes, continuing an upward trend that began after major tax reforms in 2013. In the 2015 Index, the state rocketed from 41st place to 12th ("the most dramatic improvement in the Index's history").
In 2016, NC moved to 11th. Last year, it ranked 4th.
Overall, North Carolina ranks 11th in the national when scored on a combination of Corporate Taxes, Individual Income Taxes, Sales Taxes, Unemployment Insurance Taxes and Property Taxes.
Today, North Carolina imposes the lowest-rate corporate income tax in the nation at 3 percent, down from 4 percent the previous year. It's third place ranking gives North Carolina the highest position for any state that imposes a corporate tax (six states don't have corporate income taxes).
The latest adopted state budget promises even more tax reforms coming for North Carolina businesses and individuals in 2019:
• The corporate income tax rate would fall from 3 percent to 2.5 percent.
• The individual income tax rate would decrease from 5.499 percent to 5.25 percent.
• The standard deduction would increase in 2019. For single filers, the deduction would increase from $8,750 to $10,000, while married filers would see an increase from $17,500 to $20,000.
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