Thanks to the 2017 state budget approved by the North Carolina General Assembly which took effect on January 1, the personal income tax has dropped from 5.499% to 5.25%. In addition, the corporate tax rate has been lowered from 3% to 2.5% in our state.
Just five years ago, North Carolina had the highest personal and corporate income tax rates in the region. With the recent changes, our state now boasts the lowest personal income tax rate in the Southeastern United States other than Florida and Tennessee (both of which do not impose personal income taxes), and the lowest corporate tax rate in the nation among the 48 states that levy such a tax.
This is a welcome change for small businesses and entrepreneurs in our state. “Just last week our small startup wrote about a dozen payroll checks. Every single incentive to help us grow is welcome,” said BJ Murphy, CEO of Magic Mile Media and Publisher of NeuseNews.com. “Small business owners in North Carolina work tirelessly to provide food not only for their families, but for their colleagues and employees.”
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