Premium Membership 
Free Membership
Small Business Guide 
Controlling Your Taxes Your State Tax Obligations North Carolina Taxes on Business Income in North Carolina Personal Income Tax in North Carolina
Controlling Your Taxes Your State Tax Obligations North Carolina Taxes on Business Income in North Carolina Personal Income Tax in North Carolina
Back
Share this!
PrintPersonal Income Tax in North Carolina
If you are operating your business as an S corporation, partnership, limited liability company (LLC), or sole proprietorship, you may be subject to a personal income tax on the your business income that is not taxed at the corporate level, but instead passes through to you.
North Carolina imposes a bracket schedule of personal income tax rates on your adjusted gross income. The income tax brackets that you fall into will depend on your filing status and your level of income.
The applicable personal income tax rates for 2008 range from 6 to 8.25 percent as follows:
| Single Individuals | |
|---|---|
| Taxable Income | Amount of Tax |
| Up to $12,750 | 6% of taxable income |
| Over $12,750 to $60,000 | $765 plus 7% of excess over $12,750 |
| Over $60,000 to $120,000 | $4,072.50 plus 7.75% of excess over $60,000 |
| Over $120,000 | $8,722.50 plus 8.25% of excess over $120,000 |
| Married Filing Jointly and Qualifying Widow(er) | |
|---|---|
| Taxable Income | Amount of Tax |
| Up to $21,250 | 6% of taxable income |
| Over $21,250 to $100,000 | $1,275 plus 7% of excess over $21,250 |
| Over $100,000 to $200,000 | $6,787.50 plus 7.75% of excess over $100,000 |
| Over $200,000 | $14,537.50 plus 8.25% of excess over $200,000 |
| Married Filing Separately | |
|---|---|
| Taxable Income | Amount of Tax |
| Up to $10,625 | 6% of taxable income |
| Over $10,625 to $50,000 | $637.50 plus 7% of excess over $10,625 |
| Over $50,000 to $100,000 | $3,393.75 plus 7.75% of excess over $50,000 |
| Over $100,000 | $7,268.75 plus 8.25% of excess over $100,000 |
| Head of Household | |
|---|---|
| Taxable Income | Amount of Tax |
| Up to $17,000 | 6% of taxable income |
| Over $17,000 to $80,000 | $1,020 plus 7% of excess over $17,000 |
| Over $80,000 to $160,000 | $5,430 plus 7.75% of excess over $80,000 |
| Over $160,000 | $11,630 plus 8.25% of excess over $160,000 |
