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Below is a snapshot of key features of North Carolina's tax system. (Scroll Down)
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State & Local Revenue (FY08)
- General Revenue, Own-Source (GROS): $49.4 billion
- General Revenue as a Share of Income: 15.4%
- Tax Revenue: $33.2 billion
- Tax Revenue as Share of income: 10.3%
- Personal Income Tax (Share of Tax Revenue): 33.1% (5 out of 51)
- Corporate Income Tax (Share of Tax Revenue): 3.6% (28 out of 51)
- Sales & Excise Tax (Share of Tax Revenue): 33.6% (26 out of 51)
- Property Tax (Share of Tax Revenue): 23.7% (39 out of 51)
- Other Taxes (Share of Tax Revenue): .9% (41 out of 51)
Personal Income Tax Features (2011)
- Range of Tax Rates: 6.0% - 7.75%
- Standard Deduction: $3,000 ($6,000 for Married Couples)
- Personal Exemption: $2,500
- Dependent Exemption: $2,500
- Earned Income Tax Credit (EITC): 5% Refundable
- Personal exemption phases out for high income levels
Corporate Income Tax Features (2011)
- Range of Tax Rates: 6.90%
- Income Level at Which Top Rate Applies: All
- Combined Reporting: No
- Apportionment Factor (Payroll): 25%
- Apportionment Factor (Property): 25%
- Apportionment Factor (Sales): 50%
Sales Tax Features (2011)
- State Sales Tax Rate: 4.75
- Average Local Sales Tax Rate: 2.10%
- Average Combined State & Local Sales Tax Rate: 6.85%
- State Sales Tax Treatment of Groceries: Exempt
- Local Sales Tax Treatment of Groceries: Taxed
- Number of Services Taxed: 57 out of 168 surveyed
- Streamlined Sales Tax Membership: Full
- "Amazon law" in effect
- Sales tax holiday offered in 2011
Property Tax Features (2011)
- Does not provide a meaningful homestead exemption or circuit breaker for non-elderly taxpayers.
- Levies a car tax.
- Comparatively low property taxes.
Other Tax & Revenue Features (2011)
- Gasoline Tax Rate (per gallon): $0.328
- Diesel Tax Rate (per gallon): $0.328
- Cigarette Tax Rate (per pack): $0.45
- Estate or Inheritance Tax: Yes
- Net Lottery Sales Per Capita: $24
Tax Policy Oversight
- Tax Expenditure Report: Yes
- Tax Incidence Analysis Capability: Personal income tax only
Last Updated August 25, 2011
Sources & Glossary
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