(1) Personal Income Tax RateThe personal income tax rate will drop to 5.25% for a taxpayer’s North Carolina taxable income. The 2017 personal income tax rate is 5.499%.
(2) Corporate Income Tax RateThe corporate income tax rate will drop to 3% for every C corporation doing business in the State, effective as of January 1, 2017. The corporate income tax rate will drop even further to 2.5% for taxable years beginning January 1, 2019. The current corporate income tax rate is 4%.
|New corporate tax rates may bring about a spring of new business in North Carolina.|
(3) Standard Deduction IncreasedAdditionally, each filing status will see an increase in the standard deduction.
- Married, filing jointly/surviving spouse $20,000 (currently $17,500)
- Head of Household $15,000 (currently $14,000)
- Single $10,000 (currently $8,750)
- Married, filing separately $10,000 (currently $8,750)
Kelly J. Brown is licensed to practice law in North Carolina, South Carolina, and U.S. Tax Court. Her areas of practice include business law, tax, real estate, and mortgage disputes. She also uses her Master’s in Tax Law and Master’s in Business Administration to assist her clients.