State of North Carolina
The State collects personal and corporate income tax. A brief summary is provided below. For detailed information please visit the North Carolina Department of Revenue.
Personal Income Tax
Flat tax rate: 5.75% (2016) / 5.75% (2017)
Corporate Income Tax
Only C-corporations and entities that elect to be taxed as C-corporations are subject to the corporate income tax.
Tax rate: 4% (2016) / 3% (2017)
For taxable year 2016, if net general fund tax revenues for fiscal year 14-15 equal or exceed $20.2 billion, the rate will drop 1% to 4%. If target not reached, rate remains at 5%.
For taxable year 2017, if net general fund tax revenues for fiscal year15-16 equal or exceed $20.975 billion, the rate will drop 1%. If target reached both fiscal years, rate would be 3%. If target reached in only one fiscal year, then rate would be 4%. If target isn't reached in either fiscal year, then the rate remains at 5%.
Sales and Use Tax
City of Raleigh
There is no local income tax.
The City of Raleigh receives revenues through ad valorem property taxes. The rate is a combination of city and county taxes. Tax rates are calculated against each $100 in value.
Wake County: $0.6005
Combined Rate: $1.0188
For a comprehensive list of local taxes visit – www.wakegov.com/tax