Taxation in North Carolina

Updated on Thursday 15th November 2018

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The corporate income tax in North Carolina is set at a flat rate of 3% and the good news for business owners in this state is that, starting from January 2019, the tax will be lowered at a 2.5% rate. Our company formation agents in USA can offer information about the taxes for companies in North Carolina and are at the disposal for overseas investors who are interested in starting a business in USA.

What is the franchise tax in North Carolina?

The privilege of having a business in North Carolina is described by the franchise tax which is applicable for traditional and S corporations’ net worth. For example, S corporations are subject to a minimum franchise tax of $200 on the first $1,000,000. For a better understanding of the tax regime in North Carolina, we invite you to talk to our team of consultants in USA. They can also help you open a business in USA, in respect with the requirements of the local authorities and laws.

What is the sales tax in North Carolina?

The standard sales tax in North Carolina is set at 4.75% for goods and services meant for sale purposes in this state. Municipalities in North Carolina can impose their own sales tax which cannot exceed 2.25%.

The capital gains tax in North Carolina

Treated as regular incomes, the capital gains are levied at a flat rate of 5.49%. This tax rate is applicable for short-term and long-term capital gains in North Carolina.

Other tax facts for North Carolina

Foreigners or local entrepreneurs who would like to start a business in North Carolina should observe the tax regime for their companies:
  • limited liability companies are seen as pass-through entities and the taxes are imposed on the distributed income for each individual;
  • if your company has establishments in other states besides North Carolina, the income registered there will be levied in accordance with the tax regime;
  • the personal income tax in North Carolina is set at a flat rate of 5.75%;
  • there is no estate tax and no inheritance tax imposed in North Carolina since 2013.
For complete details about the tax regime for companies in North Carolina, we invite you to get in touch with our team of company incorporation consultants in USA.