North Carolina now has one of the lowest income tax rates in the country and the lowest corporate tax rate in the country, having recently had among the highest.
As the ball dropped marking the turn of the New Year, it also marked the ushering in of a new state tax policy. Beginning on January 1st, North Carolina citizens’ state income taxes were lowered from 5.499% to 5.25%. Additionally, the state corporate tax rate fell to 2.5%.
While those who are critical of lowering taxes point to Kansas as an example of what happens, North Carolina is thriving. Our state spending aligns with our population growth and through cutting taxes, our state has become more appealing to those looking to move from states with higher taxes. Our fiscally responsible spending now led us to build the largest rainy day fund in North Carolina history, which we were able to utilize to help our citizens when it mattered most.