2009 State Tax Law Changes At A Glance

Posted by admin in News on 09 1st, 2009 | no responses

The N.C. General Assembly made a number of changes to North Carolina state tax laws. Following is a quick first look at some of the changes.

The state sales tax will increase by 1 percent effective Sept. 1, 2009. As a result of the increase, the combined state and county tax rate will increase to 8 percent in Cumberland County.

Individuals who meet certain income requirements will pay a surtax on the amount of tax they owe before any withholding, payments or credits.

Please see the Surtax Percentage Table for the thresholds.

Surtax Percentage Table
Filing Status NC Taxable Income shown on Line 13 Surtax Percentage
Married Filing Jointly / Surviving Spouse More than $100,000 up to $250,000 2%
Married Filing Jointly / Surviving Spouse More than $250,000 3%
Head of Household More than $80,000 up to $200,000 2%
Head of Household More than $200,000 3%
Single More than $60,000 up to $150,000 2%
Single More than $150,000 3%
Married Filing Separately More than $50,000 up to $125,000 2%
Married Filing Separately More than $125,000 3%

For example, if your filing status is “married filing jointly” and your North Carolina taxable income shown on Line 13 of Form D-400 is $150,000, you would compute your “regular” state income tax on Line 14 and then multiply that amount by 2 percent. The result would be added to your “regular” tax on Line 14 to give you your total tax liability. Then you subtract credits, withholding, payments, etc., to find out if you are due a refund or if you have to pay any additional tax.

Note: there is no penalty (interest) for underpayment of estimated tax if the underpayment is because of the surtax.

Corporations subject to corporate income tax must pay an income tax surcharge of 3 percent on its North Carolina income tax due before deducting any tax credits or payments.



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