North Carolina Voters Cap the State Income Tax at 3.5%: What the November 3, 2026 Amendments Mean for 2027 Rates, Payroll, S Corps and Property Taxes
North Carolina voters approved constitutional amendments on November 3, 2026 that cap the state income tax rate at 3.5% for taxable years beginning on or after January 1, 2027 and require the General Assembly to limit local property tax levy increases. Your 2026 rate stays 3.99% and the 2027 rate of 3.49% comes from S.L. 2026-41, so we explain what changes for individuals, PTET-electing S corporations and partnerships, employers, and property owners, with an example and a year-end timeline.
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