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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 year 15-16 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

Combined Rate: 7.25%

State of NC: 4.75%

Wake County: 2% 

Local Transit: 0.5%

 

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. 

 

Property Tax

 

Raleigh: $0.4253

Wake County: $0.615

Combined Rate: $1.0403

 

In North Carolina, property taxes are locally-assessed and collected by counties. Taxes rates are based on 100% of a property’s assessed value and are applied per $100 of assessed value. Real property taxes can include a combination of county, municipal, fire and special district tax rates. Properties falling within the City of Raleigh’s corporate limits are taxed at a base rate that includes the county and municipal rate. Based on where the subject property falls, a special district rate (Hillsborough St Municipal District,  Raleigh Municipal District) may also apply. 

For a comprehensive list of local taxes visit – www.wakegov.com/tax