Personal income tax
North Carolina collects income taxes from its residents utilizing four tax brackets.
For single taxpayers:
- 6 percent on the first $12,750 of taxable income.
- 7 percent on taxable income between $12,751 and $60,000.
- 7.75 percent on taxable income between $60,001 and above.
For married persons filing joint returns:
- 6 percent on the first $21,250 of taxable income.
- 7 percent on taxable income between $21,251 and $100,000.
- 7.75 percent on taxable income between $100,001 and above.
North Carolina individual income tax returns are due April 15 or the next business day if that date falls on a weekend or holiday.
On July 1, 2011, the state sales tax dropped a percentage point to 4.75 percent.
Most taxable sales or purchases are also subject to the state tax as well as a local tax levied by all counties. The rate in most counties is 2 percent, but it is 2.25 percent or 2.5 percent in certain counties.
The North Carolina Department of Revenue offers a complete list of tax rates for its counties and cities.
North Carolina also has a use tax, which applies to all out-of-state purchases of tangible personal property that would be subject to the sales tax if purchased in North Carolina. In these cases, taxpayers should file Form E-554.
Personal and real property taxes
The property tax in North Carolina is a locally assessed tax, collected by the counties. The state Department of Revenue does not send property tax bills or collect property taxes.
The three main elements of the property tax system in North Carolina are real property, motor vehicles and personal property (inventories and household personal property are exempt).
For almost all the segments of the property tax, Jan. 1 is the tax lien date. In other words, an individual owning property as of that date is liable for property taxes in the county where the property is located.
Taxpayers with tangible personal property in North Carolina must file an annual Schedule B-Personal Property tax return with each county where the property is owned by Jan. 31. The amount reported must be the fair market value and is based on assessed values in $100 increments.
Listings of the state's property tax rates since 1998 are available on the North Carolina Department of Revenue website.
North Carolina offers various property tax exclusions, including tax breaks for the elderly, veterans and the disabled.
For further information regarding property tax, contact your local county assessor.
Inheritance and estate taxes
North Carolina does not collect an inheritance tax.
The North Carolina estate tax was reinstated on Jan. 1, 2011, and follows the federal estate tax exclusion of $5 million.
Other North Carolina tax facts
North Carolina taxpayers can check the status of their state returns online.
Taxpayers can have their state refund money directly deposited into a bank account (if the return was electronically filed), sent as a paper check, credited to their estimated income tax account or credited as a contribution to the state's Wildlife Fund.
The North Carolina Department of Revenue publishes the names of individuals and businesses that owe delinquent state taxes.