Tax Laws in North Carolina.

Flat rate (4.50% in 2024, 4.25% in 2025, 3.99% in 2026). North Carolina partially conforms to the federal IRC.

4.75% state sales tax. Local sales taxes produce combined rates of 6.75%-7.5% (with Mecklenburg County at 7.25% including transit tax).

2.5% in 2024 with scheduled reductions: 2.25% (2025), 2% (2026), 0% by 2030 under 2021 tax reform. North Carolina will be among the first states to eliminate corporate income tax.

Annual franchise tax on corporations based on the greater of (1) net worth apportioned to NC, (2) investment in tangible property in NC, or (3) 55% of appraised value of property. Rate $1.50 per $1,000 with minimum.

Locally assessed and collected. Reappraisal at least every 8 years (many counties on 4-year cycle).

North Carolina has no estate tax (repealed 2013) and no inheritance tax.