Two bills were filed this week, both sponsored by outgoing Senator Bob Rucho, that would alter NC’s personal income tax schedule.
Senate Bill 817 would submit for voter approval this fall an Amendment to the state constitution that would change section 2 of Article V to cap the state’s personal income tax at a rate of 5.5%. Currently, the state constitution imposes a 10% cap on the tax.
Moreover, the state’s current 5.75% tax rate is scheduled to fall to 5.499% next year.
Senate Bill 818 would increase the standard deduction for the personal income tax from $15,500 to $17,500 for married filers, and from $7.750 to $8,750 for single filers. The amount of the standard deduction is not subject to taxation.