North Carolina has the 11th most competitive tax code in the nation, according to the Tax Foundation’s 2018 State Business Tax Climate Index.
The report, which was issued on Oct. 17, analyzes over 100 different variables in five categories: corporate, individual income, sales, property and unemployment insurance.
With first being the best and 50th the worst, N.C.’s rank by category:
- Corporate tax ranked third
- Unemployment insurance tax ranked sixth
- Income tax ranked 13th
- Sales tax ranked 20th
- Property tax ranked 32nd
Wyoming has the most competitive overall tax code, while New Jersey has the least competitive overall tax code, according to the 2018 report.
“While the amount of revenue a state raises gets a lot of attention, it doesn’t tell the whole story about a state’s tax system,” said lead-report author Jared Walczak, a senior policy analyst at the Tax Foundation, in a statement. “The goal of the Index is to start a conversation between taxpayers and legislators about how their tax system compares with other states, and provide a roadmap for improvement.”
Significant changes in North Carolina include a decline in the corporate rate to 3 percent and the individual income rate to 5.499 percent.
In 2017, North Carolina experienced the most dramatic improvement in the index’s history by going from 41st most competitive to the 11th most competitive. This was due to a rate cut in the corporate tax and individual income component.
The full report can be found online at:
Note: This story is from the North Carolina Business News Wire, a service of the UNC-Chapel Hill School of Media and Journalism