NORTH CAROLINA TAXES
Here is some important information to help any new residents or business owners learn about filing and paying taxes in North Carolina.
The North Carolina Department of Revenue (NCDOR) provides a wide range of services that helps taxpayers find accurate and timely information about their taxes. The department’s convenient electronic services include filing and paying some taxes online, registering a new business and even the ability to check on your income tax refund status on a mobile cellular device. All are flexible, safe and secure ways for the citizens of North Carolina to interact with the Department of Revenue.
Each year, electronic tax filing (eFile) becomes increasingly popular. Filing electronically allows individuals and businesses to file state and federal taxes together, reduces paperwork, provides acknowledgements when forms and payments are received and automatically computes figures and calculations, significantly reducing the chance of simple errors that can cause delays in processing. By eFiling and choosing direct deposit, taxpayers typically receive individual income tax refunds sooner than those who file traditional paper returns. The NCDOR offers a number of free electronic options for taxpayers who qualify.
Checking the status of your North Carolina refund is easy and fast using the “Where’s My Refund” link at www.dornc.com. Individuals can also pay their taxes, file for extensions and make estimated tax payments through the department’s website. Many business transactions can also be made using the department’s website.
For those looking for one-on-one assistance, NCDOR operates fully staffed service centers in Asheville, Charlotte, Durham, Elizabeth City, Fayetteville, Greensboro, Greenville, Hickory, Raleigh, Wilmington and Winston-Salem.
Taxes that affect most North Carolina residents are income, and sales and use. Here is some helpful information about each one:
Income taxes are due on your taxable earnings each year. The requirements for filing income tax returns in North Carolina are different from filing your federal taxes and are based on your North Carolina standard deduction. For taxable year 2017, every NC resident whose income for the taxable year equals or exceeds the following amounts must file a state return: $8,750 for single taxpayers, $17,500 for those who are married and filing jointly, $8,750 for married taxpayers who file separately, $14,000 for those who file as a head of household and $17,500 for a surviving spouse.
North Carolina state and local sales taxes are due on purchases of most goods and certain services in the state. The total general state and applicable local and transit rates of sales and use tax is 6.75 percent in most counties. A few counties have a rate of 7, 7.25, or 7.5 percent. To find the rate in your county, visit: www.dornc.com/taxes/sales/taxrates.html.
Examples of items subject to sales tax are: tangible personal property, certain digital property, rental accommodations, charges for dry cleaning, pressing and laundering linens or apparel, admission charges to entertainment activities, service contracts and certain other services including repair, maintenance and installation. Individuals may owe use tax, if they purchase any taxable tangible personal property, services or digital property inside or outside of North Carolina but intend to use the products inside the state, or if they did not pay sales tax on a taxable product at the time of the purchase. Individuals should report use taxes on their individual income tax returns each year.
For more information: www.dornc.com/taxes/sales/use.html
The North Carolina Division of Motor Vehicles collects and administers the 3 percent Highway Use Tax due on most vehicles titled in the State. . The state’s motor fuels tax is 34.3 cents per gallon.
For more information, visit the Newcomer’s Guide on the Department of Motor Vehicles website at: www.dmv.dot.state.nc.us/newcomersguide.
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