Government & Taxes

• Town of Huntersville
• Town of Cornelius
• Town of Davidson
• Mecklenburg County
• Charlotte Mecklenburg Utilities Department

Corporate Income Tax

• Flat rate of 6.9% of net income allocable to the state.

Sales & Use Tax

• 4.5% statewide with a local rate of 2.5% or 3% on transactions (combined 7% tax is not applicable to raw materials, containers, labels, packaging and shipping materials).

Franchise Tax

• $1.50 per $1,000 and is applied to the greatest base determined as set forth in the law.

Inventory Tax

• North Carolina does not impose an inventory tax.

Property Tax

• North Carolina does not impose a state property tax.
• Subject to local rates (county rates range 4.2-11%, city rates range 2.4-8%).

Electricity

• 2.83% on sales of electricity, piped natural gas to farmers, manufacturers, and commercial laundry and dry cleaning establishments.

Natural Gas

• 2.83%

Telephone Service

• 3% local
• 6% intrastate
• $50,000 cap applies for call center operations

Unemployment Insurance Rate

• Average tax rate of 0.4%
• New Employers rate 1.2%
• Maximum Rate (Deficit Employers) 5.7%
• Taxable base $15,900

North Carolina Individual Income Tax Rates

• Federal Deductibility: No
• Marginal Rates and Taxes:
  6% > $0
  7% > $12,750
  7.75% > $60,000
  8.25% > $120,000
• Standard Deduction:
  Single: $3,750
  Joint: $6,100
• Personal Exemptions:
  Single: $1,050
  Dependents: $1,050