GREENSBORO, N.C. — North Carolina residents will have a little extra money in their pocket in 2023 thanks to a decrease to the individual income tax rate.
What You Need To Know
- North Carolina residents will start the new year with a decrease in income tax rates
- An annual salary of $50,000, for example, would see a savings of $10 a month, $120 a year
- Lawmakers approved the drop in taxes during the 2021 legislative session
It fell from 4.99% to 4.75%.
An annual salary of $50,000, for example, would see a savings of $10 a month, $120 a year.
Many employees in the state said they are looking forward to the change taking effect.
“I feel really good about it. I will never say no to a little extra pocket money,“ said Taylor Phillips, a part-time cashier and art student at the University of North Carolina at Greensboro.
Others said they are looking forward to using those additional few dollars for things like groceries, gas and savings.
Lawmakers approved the drop in taxes during the 2021 legislative session.
The income tax will decrease to 3.99% in 2026.