North Carolina State Tax Information
North Carolina has a separate income tax for residents, as do most other states. This is usually what everyone thinks of when it comes to state tax, but you also need to take into account things such as sales tax, property tax and estate tax.
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General State Income Tax
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General state income tax is divided into sections based on your taxable income. The first tier taxes the first $12.750 of taxable income at 6 percent. The next tier goes up to $60,000 in income and is taxed at 7 percent. The third tier goes up to $120,000 and is taxed at 7.75 percent and finally, anything $120,001 and above is taxed at 8 percent. When filing jointly, the tax rates are the same percentages but the taxable income levels are set at $21,250, $100,000, $200,000 and $200,001 and above.
Estate Tax
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Estate tax also brings in funds for the state. It can never exceed the current federal estate tax amount. There is a state death tax credit, which fluctuates often. Things to keep in mind with estate tax includes properties and their locations. If you inherit a property in North Carolina but live elsewhere, you might only pay partial tax to North Carolina and partial tax to your state. Much of this depends on permanent residences and where the person who left the estate died.
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Property Tax
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Property taxes vary greatly from county to county. The state bases its tax on rates per $100 valuation; the lowest county comes in at .2300 per $100 and the highest at around 1.0200 per $100. These numbers fluctuate yearly. Depending on your county, your revaluation fluctuates as well. Some counties choose to revalue a property every four years, while others do it every eight. This moving number is something other states, such as California, have gotten away from. In North Carolina, even if you keep your property, it is revalued at a certain point by declaration of the county in which the property is situated.
Fuel Tax
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Then there are those taxes you pay often, sometimes daily. The motor fuel tax rate for North Carolina has consistently trended upwards, as with the rest of the country. In 2010, it is at its highest rate ever, 30.3 cents per gallon. This is mostly considered a road tax and the monies are intended to be used accordingly. In addition, North Carolina chooses to collect a separate 25 cents per gallon for the inspection tax.
Sales Tax
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Sales tax in North Carolina is dependent on county. While the base rate for state sales tax sits around 5.75 percent as of 2010, the overall tax fluctuates between 7.75 percent and 8.25 percent overall when taking into account county taxes.
Unauthorized Substance Tax
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An unusual tax in the state is one for unauthorized substances such as cocaine. A person can purchase a stamp, pay the excise tax and be within the law. You do not have to provide your identity in order to pay this tax. These taxes are meant to pay for law enforcement agencies that enforce drug and alcohol laws.
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References
- Photo Credit tax forms image by Chad McDermott from Fotolia.com
