Individuals and small businesses could save more than $200 million in 2017.
North Carolina Lawmakers Considering Income Tax Cut
The North Carolina Legislature returns to session in April, and leaders of the General Assembly Committee concerned with tax law recommendations are preparing in advance by looking at an income tax cut.
The cut being considered—there is no formal proposal yet—would be an expansion of the standard deduction individuals can take on their income taxes. For the 2016 tax year, those filing individually can deduct $7,750 and those filing jointly can deduct $15,500. If lawmakers go forward with the cuts proposed in a Senate bill last year, the standard deduction for individuals would rise to $8,750 and $17,500 for married couples. This potential cut would go into effect for tax year 2017.
If approved, this change would save taxpayers somewhere between $195 million and $205 million. This would also be on top of the previous years’ tax cuts from Gov. McCrory and state legislators that are estimated to save taxpayers between $1.3 billion and $2.3 billion next year.
