Raleigh NC real estate listings and homes for sale, home buying, home selling information

TAX & LICENSE / STATE TAX SYSTEM

State Individual Income Tax

North Carolina imposes a state income tax on a variable scale that takes into consideration the taxpayer's filing status and income level. The tax rate varies from 6 to 8.25 percent. Exemptions and credits apply, depending upon each taxpayer's individual situation. For more information on income tax in North Carolina, contact:

North Carolina Department of Revenue

877-252-3052

www.dor.state.nc.us

Refund Information

877-252-4052

Tax Forms

877-252-3052

Taxpayer Service Center

Raleigh Service Center

4701 Atlantic Avenue
Raleigh

877-252-3052

www.dor.state.nc.us

Sales and Use Taxes

North Carolina imposes a 4.5 percent state sales tax, although local jurisdictions can add additional sales taxes. Sales taxes are collected by the retailer and paid by the consumer. Use taxes are paid directly by residents to the Department of Revenue on items that were purchased out-of-state (such as catalog or Internet sales) where tax was not collected, and the items are being used in North Carolina. The use tax is the same as the sales tax would have been if the item had been purchased in North Carolina and is included on the income tax form.

Sales Tax Holiday

Clothing, footwear, and school supplies that sell for less than $100 per item and computers, printers, printer supplies, and educational software that sells for less than $3,500 per item are exempt from sales taxes between 12:01 A.M. on the first Friday in August and 11:59 P.M. the following Sunday. For more information on the Sales Tax Holiday or general questions about sales and use taxes, contact:

Sales & Use Tax

877-242-3052

www.dor.state.nc.us

Estate & Gift Taxes

North Carolina imposes an estate tax on the estate of a decedent when a federal estate tax is imposed on the estate. Under a new federal law, the state death tax credit is being phased out over three years beginning with 2002. North Carolina did not adopt the phase-out, so the estate tax is equal to the state death tax credit for federal purposes before applying the percentage reduction to the federal credit. The North Carolina Estate Tax Return must be filed with the North Carolina Department of Revenue at the same time the federal estate tax return is due. The North Carolina Gift Tax Return is required for gifts exceeding the annual exclusion amount. For state gift tax purposes, the annual exclusion amount is equal to the federal inflation-adjusted amount. The annual exclusion amount for gifts made on or after January 1, 2002, is $11,000. For more information on estate and/or gift taxes, contact:

Estate & Gift Tax

877-242-3052

www.dor.state.nc.us

North Carolina Tax Information

Contact the Department of Revenue for more information or any questions you may have about these and other North Carolina taxes. The toll-free line offers recorded answers to frequently asked questions on individual income tax, corporate and franchise tax, sales and use tax, and withholding tax:

Tax Information Line

877-252-3052

www.dor.state.nc.us

Property Taxes

Property taxes in North Carolina are collected by the counties. For almost all the segments of the property tax, January 1 is the tax lien date. An individual owning property as of that date is liable for property taxes in the county where the property is located. The primary exception to this rule is motor vehicle property tax, payable after vehicle registration. For further information regarding property tax, contact your local assessor in the property tax office. The Department of Revenue's Property Tax Division is also a good source of information:

State Property Tax Division

877-308-9103

www.dor.state.nc.us

COUNTY ASSESSORS

Alamance County

www.alamance-nc.com

Chatham County

www.chathamnc.org

Durham County

www.durhamcountync.gov

Franklin County

www.co.franklin.nc.us/Tax.html