On Jan. 1, state tax cuts benefit the rich while worst-paid North Carolinians get just $5 — unless NC General Assembly Hits Pause

Average tax cut for North Carolinians of different income levels based on corporate income tax and personal income tax rate cuts scheduled for 2026

Estimates are based on 2025 incomes and show the tax changes if these rates were implemented for tax year 2025. This shows the combined impact of reducing the personal income tax rate from 4.25% in TY 2025 to 3.99% in TY 2026 and reducing the corporate income tax rate from 2.25% in TY 2025 to 2% in TY 2026. These tax changes are current law.
Source: Special data request to the Institute on Taxation and Economic PolicyGet the dataCreated with Datawrapper