North Carolina Decreases Flat Tax Rate for 2023

North Carolina’s flat tax rate is to decrease for 2023, the state revenue department said in its 2023 withholding methods released Dec. 12.

The tax rate for 2023 is 4.75%, down from 4.99%, meaning the rate used for withholding is 4.85% in 2023, instead of 5.09%, the department said in the withholding methods. Under state law, the tax rate is to decrease each year until it reaches 3.99% starting in 2027.

The state’s standard deductions were unchanged at $19,125 annually for heads of household and $12,750 annually for other filing statuses. The value of a state allowance was unchanged ...