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Personal Income Taxes
Tax Rate Range: Low - 6.0%; High - 8.25%
Income Brackets: * Lowest - $12,750; Highest - $120,000
Number of Brackets: 4
Personal Exemptions: ** Single - $1,050; Married -
$2,100; Dependents - $1,050
Standard Deduction: Single - $3,750; Married filing
jointly - $6,100
Medical/Dental Deduction: Federal amount
Federal Income Tax Deduction: None
Retirement Income Taxes: Social Security is exempt.
At least $4,000 in exclusions for federal, state and local
pensions (depending on dates and length of service); up to
$2,000 exemption for qualified private pensions, including IRAs.
Out-of-state government pensions also qualify for the $4,000
exemption. Military retirees with at least 5 years of
creditable service as of
August 12, 1989, will be permanently exempt from
state income tax on their retired/retainer pay.
Retired Military Pay: If an individual had five years of
creditable service as of August 12, 1989, all military retired pay is exempt from
taxes. Otherwise, a deduction of up to $4,000 is allowed
for military pay or survivor's benefits.
Military Disability Retired Pay:
Disability Portion - Length of
Service Pay; Member on September 24, 1975 - No tax;
Not Member on
September 24, 1975 - Taxed, unless combat
incurred. Retired Pay - Based solely on disability:
Member on September 24, 1975 - No tax; Not Member on
September 24, 1975 - Taxed, unless all pay
based on disability and disability resulted from armed conflict,
extra-hazardous service, simulated war, or an instrumentality of
war.
VA Disability Dependency and Indemnity Compensation: Not
subject to federal or state taxes
Military SBP/SSBP/RCSBP/RSFPP: Generally subject to state
taxes for those states with income tax. Check with state
department of revenue office.
Property Taxes
All property, real and personal, is subject to taxation and is
assessed based on 100% of appraised value. Taxes are
collected by cities and counties. Under the homestead
exemption, homeowners 65 and older whose household income is
$18,500 or less, $20,000 or 50% (which ever is greater) of the
appraised value of the property is exempt from taxes. Call
919-733-7711 for details.
http://www.dor.state.nc.us/practitioner/property/exemptions.html
Inheritance and Estate Taxes
There is no inheritance tax and the estate tax is related to
federal estate tax collection.
Sales Taxes
State Sales Tax: 4.5%
(prescription drugs, medical equipment exempt, food subject to
2% county tax); Some county taxes can increase the total to
7.5%.
Gasoline Tax: 24.55 cents/gallon
Diesel Fuel Tax: 24.55 cents/gallon
Gasohol Tax: 24.55 cents/gallon
Cigarette Tax: 5 cents/pack of 20
For further information, visit the
North Carolina
Department of Revenue
site.
* The tax brackets reported are for single individuals. For
married taxpayers, the same rates apply to income brackets
ranging from $21,250 to $200,000. An additional middle income
tax credit is allowed.
** Taxpayers who claim standard deduction or itemize deductions
on federal return must make adjustments.
*All Information is
subject to change!
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