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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The Palladium • 5113 Piper Station Drive, Suite 103 Charlotte NC 28277
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