State and federal tax cuts since 2018 have given huge payouts to the richest 1% in North Carolina, while those with lowest pay got a tax hike

Estimated tax change in Tax Year 2026 for North Carolinians of different income levels due to state and federal tax changes since 2018. Shows the average change in tax payments for 2026 compared to what people would have owed under 2018's tax policies. 

Compares 2018's state personal income tax rate (approximately 5.5%), and 2018's state corporate income tax rate (3%) along with the federal tax code prior to changes made in the 2017 Tax Cuts and Jobs Act and the 2025 One Big Beautiful Bill Act. The state personal income tax rate in 2026 is 3.99%. The state corporate income tax rate is 2% and will be eliminated by 2030. Estimates are based on 2018 tax rates applied to 2026 incomes.
Chart: NC Budget & Tax CenterSource: Special data request to the Institute on Taxation and Economic PolicyGet the dataCreated with Datawrapper