What are the Income Law
Requirements in the State of North Carolina?
A modern nation is built by her citizens contributing as a whole towards its development; therefore for the progress and welfare of its entire populace. The government imposes a tax on the income or monetary transaction of her residents and associated bodies such as businesses and trusts. The United States of America imposes taxes upon its citizens and residents at a federal, state and local government level. The taxes are collected for benefits provided by government bodies with provisions for individual government bodies of the states as well as local counties and municipalities.
Taxes in North Carolina
North Carolina imposes various burdens on her residence and business operating within her jurisdiction. The total taxes collected within the state fall under these four primary categories:
- Individual taxes: Individual taxes are taxes imposed by the state on individuals on account of various services provided by the state, including services such as Social Security and Medicare. North Carolina, like 43 other states within the Union collects income tax from citizens and residents within the state. The highest individual tax rate in the nation is 5.499% of the taxable income. The state is ranked 18th overall, collecting $1124 per capita in personal income taxes as per the latest data. The state-local tax burden as a percent of total state income comes to approximately 9.8 percent of the total taxes collected.
- Business and Corporate taxes: Corporate or business taxes are imposed on business organizations operating within the jurisdiction of North Carolina. These taxes are generally imposed based on factors such as profits, assets, and capital owned by businesses and corporations. Certain organizations such as non-profit charitable organizations and religious institutions may be exempt from such taxes. North Carolina is one of the four states within the United States that levy a corporate tax; with the corporate tax pegged at 3 percent for all business entities, being the lowest in the country; while the state ranks as 11th in the overall business tax index.
- Sales tax: Sales tax is imposed on the sale of certain goods and services. The fee is usually collected from the consumer at the point of purchase. North Carolina has a sales tax levied at 4.75%, which came into effect from 2011. Also, 72 of the 100 counties in the state impose an additional 2% tax; with the net sales tax adding up to 6.75% for most of the state. Furthermore, to fund the light rail system, the counties of Mecklenburg and Wake imposes an additional 0.5% sales tax. Other counties such as Durham County and Orange County also impose a 0.5% sales tax to fund public transportation systems. Most foodstuff is taxed at a flat rate of 2%; while gasoline is taxed at 34 cents per gallon; 45 cents per pack of cigarettes; 79 cents per gallon of wine and 53 cents per gallon of beer. Per capita collection of sales tax amounts to about $942 for the entire state.
- Property tax: Throughout the United States, state governments levy a property tax also known as millage rate, which is the principal source of revenue for the state. The fee is levied on both real estate as well as personal property. Across North Carolina, property taxes vary from county to county; with the average across the state coming to about 0.85% of the total value of the property owned by the individual. The state government earns about $942 per capita from property taxes, taxed from housing entities. Property taxes vary significantly for commercial establishments and properties owned by businesses, as well as for those used for agriculture and mining.