North Carolina increases income tax rates with Surtax
Posted by Donna BordeauxMonday, September 28th, 2009
North Carolina
Beginning with your North Carolina 2009 tax return, your overall top rates may increase based on a surtax. This is an increase to the top tier rates if your taxable income is more than $100,000. Its what we otherwise call a “TAX INCREASE” for North Carolina sources of income. Just another reason to prepare with good tax planning.
| Filing Status | NC Taxable Income shown on Line 13 |
Surtax Percentage |
|---|---|---|
| Married Filing Jointly/ Surviving Spouse |
More than $100,000 up to $250,000 | 2% |
| Married Filing Jointly/ Surviving Spouse |
More than $250,000 | 3% |
| Head of Household | More than $80,000 up to $200,000 | 2% |
| Head of Household | More than $200,000 | 3% |
| Single | More than $60,000 up to $150,000 | 2% |
| Single | More than $150,000 | 3% |
| Married Filing Separately | More than $50,000 up to $125,000 | 2% |
| Married Filing Separately | More than $125,000 | 3% |
For example, if your filing status is “married filing jointly” and your North Carolina taxable income shown on Line 13 of Form D-400 is $150,000, you would compute your “regular” state income tax on Line 14 and then multiply that amount by 2 percent. The result would be added to your “regular” tax on Line 14 to give you your total tax liability. Then you subtract credits, withholding, payments, etc., to find out if you are due a refund or if you have to pay any additional tax.
Note: there is no penalty (interest) for underpayment of estimated tax if the underpayment is because of the surtax.
For further information, please see the North Carolina Department of Revenue site.
Donna Bordeaux is a Certified Public Accountant and Personal Financial Specialist with Bordeaux & Bordeaux, CPAs, PA in Lake Wylie, SC (a suburb of Charlotte, NC). For further information about Donna or her firm, please visit her website at Charlotte CPA or by phone at 704.752.9845.Tags: income tax rates, NC surtax, North Carolina surtax, surtax, tax increase
