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Understanding Personal Income Tax in North Carolina

Filed under State Taxes. Fact checked on February 13, 2013.

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North Carolina personal income tax is discussed.

If you are operating your business as an S corporation, partnership, limited liability company (LLC), or sole proprietorship, you may be subject to a personal income tax on the your business income that is not taxed at the corporate level, but instead passes through to you.

North Carolina imposes a bracket schedule of personal income tax rates on your adjusted gross income. The income tax brackets that you fall into will depend on your filing status and your level of income.

The applicable personal income tax rates for 2012 range from 6 to 7.75 percent. The regular marginal tax rates apply as follows for 2012:

Single Individuals
Taxable Income Amount of Tax
Up to $12,750 6% of taxable income
Over $12,750 to not over $60,000 $765 plus 7% of the amount over $12,750
Over $60,000 $4,072.50 plus 7.75% of the amount over $60,000

Married Filing Jointly and Qualifying Widow(er)
Taxable Income Amount of Tax
Up to $21,250 6% of taxable income
Over $21,250 to not over $100,000 $1,275 plus 7% of the amount over $21,250
Over $100,000 $6,787.50 plus 7.75% of the amount over $100,000

Married Filing Separately
Taxable Income Amount of Tax
Up to $10,625 6% of taxable income
Over $10,625 to not over $50,000 $637.50 plus 7% of the amount over $10,625
Over $50,000 $3,393.75 plus 7.75% of the amount over $50,000

Head of Household
Taxable Income Amount of Tax
Up to $17,000 6% of taxable income
Over $17,000 to $80,000 $1,020 plus 7% of excess over $17,000
Over $80,000 $5,430 plus 7.75% of excess over $80,000

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