North Carolina personal income tax is discussed.
If you are operating your business as an S corporation, partnership, limited liability company (LLC), or sole proprietorship, you may be subject to a personal income tax on the your business income that is not taxed at the corporate level, but instead passes through to you.
North Carolina imposes a bracket schedule of personal income tax rates on your adjusted gross income. The income tax brackets that you fall into will depend on your filing status and your level of income.
The applicable personal income tax rates for 2012 range from 6 to 7.75 percent. The regular marginal tax rates apply as follows for 2012:
| Single Individuals | |
|---|---|
| Taxable Income | Amount of Tax |
| Up to $12,750 | 6% of taxable income |
| Over $12,750 to not over $60,000 | $765 plus 7% of the amount over $12,750 |
| Over $60,000 | $4,072.50 plus 7.75% of the amount over $60,000 |
| Married Filing Jointly and Qualifying Widow(er) | |
|---|---|
| Taxable Income | Amount of Tax |
| Up to $21,250 | 6% of taxable income |
| Over $21,250 to not over $100,000 | $1,275 plus 7% of the amount over $21,250 |
| Over $100,000 | $6,787.50 plus 7.75% of the amount over $100,000 |
| Married Filing Separately | |
|---|---|
| Taxable Income | Amount of Tax |
| Up to $10,625 | 6% of taxable income |
| Over $10,625 to not over $50,000 | $637.50 plus 7% of the amount over $10,625 |
| Over $50,000 | $3,393.75 plus 7.75% of the amount over $50,000 |
| Head of Household | |
|---|---|
| Taxable Income | Amount of Tax |
| Up to $17,000 | 6% of taxable income |
| Over $17,000 to $80,000 | $1,020 plus 7% of excess over $17,000 |
| Over $80,000 | $5,430 plus 7.75% of excess over $80,000 |