North Carolina Tax Climate Most Improved Since 2013 | Eastern North Carolina Now

As a result of historic tax reform signed into law by Governor Pat McCrory, North Carolina's tax climate has improved to 11th, up from 44th in 2013, according to this year's State Business Tax Climate Index by the Tax Foundation.

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Press Release:

    Raleigh, N.C.     As a result of historic tax reform signed into law by Governor Pat McCrory, North Carolina's tax climate has improved to 11th, up from 44th in 2013, according to this year's State Business Tax Climate Index by the Tax Foundation. Previously, North Carolina experienced the most dramatic improvement in the Index's history-from 44th to 15th in one year. North Carolina's overall jump from 44th to 11th is the most improved tax climate in the nation since 2013.

    "This ranking is further evidence that our pro-growth tax reforms saving families and business more than $4.7 billion, paying off the $2.5 billion federal unemployment debt ahead of schedule and our excellent quality of life make North Carolina a global destination for business," said Governor McCrory. "We have come a long way since 2013 and will continue to adopt policies that make North Carolina one of the best states in the nation to live, work, visit and raise a family."

    The State Business Tax Climate Index is published by the Tax Foundation annually to give taxpayers, businesses and policymakers a way to measure how their state's tax systems compare. The Index considers corporate, personal income, sales, unemployment insurance and property tax rates in developing their overall ranking.

    Prior to 2013, North Carolina had a high tax burden compared to other southern states. The Index ranked North Carolina 44th in the country, meaning only six states were less competitive.

    The Tax Foundation attributed North Carolina's jump in the rankings to this year's business income tax cut to 4 percent, down from 5 percent the previous year and 6.9 percent in 2013. Beginning in January 2017, the business income tax will drop to 3 percent, while the individual income tax will drop from 5.75 to 5.499 percent.

    These reductions were part of historic tax reform signed by the governor that reduced the personal income tax, reduced the corporate income tax and eliminated the death tax. These reforms are projected to save hard working North Carolina families and business owners $4.7 billion during the first five years of tax reform.

  • Contact: Crystal Feldman
  •     govpress@nc.gov

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