North Carolina ranked third in the country on corporate income taxes, which was the strongest component contributing to the state’s business climate status.
North Carolina plans to further cut its corporate tax rate next year from 3 percent to 2.5 percent, as well as its personal income tax from 5.499 percent to 5.25 percent.
“When a state imposes higher taxes than a neighboring state, businesses will cross the border to some extent,” the Tax Foundation stated. “Therefore, states with more competitive tax systems score well in the Index, because they are best-suited to generate economic growth.”
– Leah Brown, S&A Communications