With so many companies moving to Queen City, is it the corporate tax rate? How does it compare to other federal states? We check.
CHARLOTTE, NC – QUESTION: Does North Carolina Have the Lowest Corporate Tax Rate in the Country?
REPLY: Yes, North Carolina has the lowest corporate tax rate compared to any other corporate tax rate. The rate in North Carolina is 2.5 percent.
Of the forty-four states that levy corporate taxes, North Carolina ranks lowest at 2.5% and New Jersey ranks highest at 11.5%.
“The difference between North Carolina and other states isn’t that big. We have one of the lowest corporate tax rates in the country, but it’s not that ours is zero and everyone else is 30, ”said Hoopes.
Nevada, Ohio, Texas, and Washington have corporate gross income taxes but no corporate income tax rate. At the same time, Wyoming and South Dakota have no corporate tax rate or gross income tax.
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“The rate isn’t the only thing that matters. So, in general, I say that we generally have a low tax rate and a cheap tax rate here,” said Hoopes.
Of course, according to Hoopes, a lower corporate tax rate helps. However, companies view North Carolina for other reasons as well.
A Republican proposal in the state legislature aims to abolish North Carolina corporation tax by 2028. The bill has yet to pass the Senate Finance Committee.
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