In July, Governor Pat McCroy signed the Tax Simplification and Reduction Act into law, effectively overhauling North Carolina’s state tax code. The new law addresses many topics such as sales tax, income taxation, and tax credits and deductions. As such, it will impact both individual taxpayers (including small business owners) and corporations. Some sections of the Act went into effect immediately after the law was ratified, while others will be phased in over the next 2-3 years.

Listed below are the more significant changes that are effective January 1, 2014. The changes are as follows:

  • Individual Income Tax:
  • Corporate Income Tax:
  • Sales Tax:
  • Other Tax Changes:

For information on how this new law might impact you, please contact our office at 910.323.3100.