The Economic Perspective: “How Does North Carolina Compare on Taxes?”

I’m Mary Walden, with economist MW, welcoming you to the economic perspective.  Today’s program asks, how does North Carolina compare on taxes.  Mike, the latest report from the non-partisan Tax Foundation on state taxes was just released.  How does North Carolina rank?

Mike: Summary Answer

  1. Report is dated 2019, but data are from a variety of years based on availability
  2. NC ranks 12th in a favorable tax climate for business, mainly due to its now low corporate income tax
  3. Ranks 38st in state and local revenue per capita
  4. Compared to the US, NC gets more of its state and local revenue from individual income and sales taxes and less from property and corporate income taxes
  5. NC ranks 12th highest in gasoline taxes, mainly because the state uses little of other taxes to pay for roads
  6. NC is still very low – 46th – in cigarette tax rates
  7. I’m MW

Mary:  And I’m Mary Walden for the Economic Perspective, an NC State Extension program from the Department of Agricultural and Resource Economics.