North Carolina

NC estate tax repealed by S.L. 2013-316 for deaths on or after Jan 1 2013

“Repealed by Session Laws 2013-316, s.7(a), effective January 1, 2013, and applicable to the estates of decedents dying on or after that date.”

Note: NCDOR's estate-tax page contained no repeal sentence when fetched; the statute repeal note is the better authority.

North Carolina flat income tax rate is 4.25% for TY2025, falling to 3.99% thereafter

“For taxable years beginning on or after January 1, 2025, a tax is imposed upon the North Carolina taxable income of every individual at the rate of four and one-quarter percent (4.25%).”

Note: Rate falls to 3.99% after 2025, with a trigger-contingent further reduction to a 2.49% floor. Standard deduction is $25,500 MFJ ($12,750 single) for TY2025.

North Carolina flat income tax rate is 4.50% for TY2024

“For Tax Year 2024, the North Carolina individual income tax rate is 4.50% (0.0450).”

Note: TY2024 flat rate; fell to 4.25% in TY2025 per G.S. 105-153.7.

North Carolina standard deduction is $25,500 (MFJ) for TY2025

“The standard deduction allowed to a married couple filing jointly under this subsection is twenty-five thousand five hundred dollars ($25,500) for taxable year 2025.”

IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback

“In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.”

Note: IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.

NC exempts NC-issued bonds; out-of-state muni bond interest is NC income addition per §105-153.5(c)(1)

“Interest upon the obligations of any of the following: This State, a political subdivision of this State, or any agency of this State or a political subdivision of this State.”

Note: §105-153.5(b)(1) provides the NC-bond subtraction (quoted). §105-153.5(c)(1) is the complementary addition clause: 'Interest upon the obligations of states other than this State, political subdivisions of those states'; out-of-state muni bond interest is added back to NC taxable income.

NC exempts NC-issued bonds; out-of-state muni bond interest is NC income addition per §105-153.5(c)(1)

“Interest upon the obligations of any of the following: This State, a political subdivision of this State, or any agency of this State or a political subdivision of this State.”

Note: §105-153.5(b)(1) provides the NC-bond subtraction (quoted). §105-153.5(c)(1) is the complementary addition clause: 'Interest upon the obligations of states other than this State, political subdivisions of those states'; out-of-state muni bond interest is added back to NC taxable income.

North Carolina does not conform to IRC §1400Z-2 QOZ gain deferral and exclusion

“A taxpayer must add to the taxpayer's adjusted gross income the amount of gain that is excluded from gross income under section 1400Z-2 of the Code.”

Note: N.C. Gen. Stat. §105-153.5(c2) requires a state income addition for gain excluded from federal income under IRC §1400Z-2. Deferred QOZ gain is taxable in North Carolina in the year of reinvestment.

North Carolina conforms to IRC §1202 QSBS gain exclusion via rolling IRC conformity date

“The term 'Code' means the Internal Revenue Code as enacted as of the date this subdivision became effective and as amended thereafter.”

Note: The quoted §105-228.90(b)(1b) text defines North Carolina's rolling IRC conformity. North Carolina's specific treatment of §1202 QSBS gain exclusions has not been separately confirmed.

NC subtraction for U.S. obligation interest requires exemption under federal law; FNMA and FHLMC have no such federal bondholder exemption

“In calculating North Carolina taxable income, a taxpayer may deduct from the taxpayer's adjusted gross income any of the following items that are included in the taxpayer's adjusted gross income: (1) Interest upon the obligations of any of the following: a. The United States or its possessions.”

Note: G.S. §105-153.5(b)(1) allows a deduction only for interest on obligations of the United States or its possessions. FNMA and FHLMC are not obligations of the United States and carry no federal bondholder exemption, so their interest stays in the North Carolina base. The catalog id retains the earlier (b)(2) label; the U.S. obligation deduction is at (b)(1).

North Carolina flat income tax rate is 4.25% for TY2025, falling to 3.99% thereafter

“For taxable years beginning on or after January 1, 2025, a tax is imposed upon the North Carolina taxable income of every individual at the rate of four and one-quarter percent (4.25%).”

Note: Rate falls to 3.99% after 2025, with a trigger-contingent further reduction to a 2.49% floor. Standard deduction is $25,500 MFJ ($12,750 single) for TY2025.

U.S. Treasury interest exempt from North Carolina income tax: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations

“Stocks and obligations of the United States Government are exempt from taxation by a State or political subdivision of a State. The exemption applies to each form of taxation that would require the obligation, the interest on the obligation, or both, to be considered in computing a tax.”

Note: 31 U.S.C. §3124(a) preempts state income taxation of U.S. government obligations. Covers T-bills, T-notes, T-bonds, TIPS, and I-bonds. Most states allow a deduction or subtraction by statute cross-referencing this federal preemption.

FHLB and FFCB bond interest exempt from North Carolina income tax: federal enabling statutes mandate state tax exemption

“Any security issued under this chapter by a Federal home loan bank, including the stock thereof, shall be exempt from taxation, except taxes upon real estate, by any State, county, municipality, or local taxing authority.”

Note: 12 U.S.C. §1433 (FHLB) and 12 U.S.C. §2023 (FFCB/Farm Credit Act) both mandate state tax exemption for securities issued under their chapters. Contrasts with FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) which have no bondholder exemption statute and whose interest is taxable by income-tax states.

Farm Credit Act: notes, bonds, debentures, and other obligations of Farm Credit Banks are instrumentalities of the United States exempt from all State, municipal, and local taxation

“The mortgages held by the Farm Credit Banks and the notes, bonds, debentures, and other obligations issued by the banks shall be considered and held to be instrumentalities of the United States and, as such, they and the income therefrom shall be exempt from all Federal, State, municipal, and local taxation, other than Federal income tax liability of the holder thereof under the Public Debt Act of 1941 (31 U.S.C. 3124).”

Note: 12 U.S.C. §2023 explicitly covers 'the income therefrom' (i.e., interest payments to bondholders), exempting it from all State and local taxation. The only carve-out is federal income tax on the holder. Parallel to 12 U.S.C. §1433 (FHLB Act), which exempts FHLB securities from state taxation. Together §1433 and §2023 mandate state and local tax exemption for both FHLB and FFCB bond interest. Shared across all jurisdictions: a single object reference satisfies buildCitationIndex() identity check.

IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback

“In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.”

Note: IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.

North Carolina flat income tax rate is 4.25% for TY2025, falling to 3.99% thereafter

“For taxable years beginning on or after January 1, 2025, a tax is imposed upon the North Carolina taxable income of every individual at the rate of four and one-quarter percent (4.25%).”

Note: Rate falls to 3.99% after 2025, with a trigger-contingent further reduction to a 2.49% floor. Standard deduction is $25,500 MFJ ($12,750 single) for TY2025.

North Carolina flat income tax rate is 4.25% for TY2025, falling to 3.99% thereafter

“For taxable years beginning on or after January 1, 2025, a tax is imposed upon the North Carolina taxable income of every individual at the rate of four and one-quarter percent (4.25%).”

Note: Rate falls to 3.99% after 2025, with a trigger-contingent further reduction to a 2.49% floor. Standard deduction is $25,500 MFJ ($12,750 single) for TY2025.

North Carolina Uniform Community Property Disposition at Death Act (effective January 1, 2026; successor to former Ch. 31C)

“This Article may be cited as the Uniform Community Property Disposition at Death Act.”

Note: NC originally adopted the UDCPRDA as Ch. 31C in 1981. Session Laws 2025-25 repealed Ch. 31C and replaced it with Ch. 30, Art. 5, effective January 1, 2026 (name changed to 'Uniform Community Property Disposition at Death Act', dropping 'Rights'). Protects the community property character of assets acquired in community property states when a couple moves to North Carolina. URL resolves to Chapter 30 table of contents; §§30-41 through 30-52 are within this chapter.

North Carolina conforms to the federal capital-loss base; treatment of an imported pre-residency section 1212 carryforward is a structural inference

“A tax is imposed for each taxable year on the North Carolina taxable income of every individual.”

Note: G.S. 105-153.7 imposes the tax on North Carolina taxable income, which starts from federal adjusted gross income, so the federal section 1212 capital-loss base carries through. No published guidance addresses the imported pre-residency carryforward; that piece stays a structural inference.