If you live in North Carolina, then a bill recently passed into law by the N.C. Legislature might give you some relief from taxes. The bill was vetoed by Governor Roy Cooper, but the Legislature overrode his veto to pass the bill on June 28, 2017. The new law makes three beneficial changes to the State’s current tax code that you will want to be aware of as a resident of North Carolina. These three changes will become effective at the beginning of the 2019 year, except for the corporate income tax rate as stated below. The bill also set forth a budget plan and created an incentive program to bring new jobs to the state. If you or anyone you know should need advise on this new legislature please contact our office at Mcgrath & Spielberger; we also specialize in corporate and business contract law services.
Personal
The 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%.
Corporate
The 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. If you need any help with you Limited Liability Company registration and management services, this is also a service we can provide and have extensive experience with.
Standard Deductions
Additionally, 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.
