FILED SENATE
Apr 6, 2021
GENERAL ASSEMBLY OF NORTH CAROLINA
S.B. 625
SESSION 2021 PRINCIPAL CLERK
S D
SENATE BILL DRS45357-MCxf-8
Short Title: A Tax Plan For A Just Recovery. (Public)
Sponsors: Senators Nickel and Murdock (Primary Sponsors).
Referred to:
1 A BILL TO BE ENTITLED
2 AN ACT TO ENACT A TAX PLAN FOR A JUST RECOVERY.
3 The General Assembly of North Carolina enacts:
4 SECTION 1. G.S. 105-153.7(a) reads as rewritten:
5 "(a) Tax. – A tax is imposed for each taxable year on the North Carolina taxable income
6 of every individual. The tax shall be levied, collected, and paid annually. The tax is five and
7 one-quarter percent (5.25%) of the taxpayer's North Carolina taxable income.annually and shall
8 be computed at the following percentages of the taxpayer's North Carolina taxable income:
9 (1) For married, filing jointly, and surviving spouses:
10 Over Up To Rate
11 -0- $500,000 5.15%
12 $500,000 $1,000,000 6.50%
13 $1,000,000 N/A 7%
14 (2) For heads of household:
15 Over Up To Rate
16 -0- $375,000 5.15%
17 $375,000 $750,000 6.50%
18 $750,000 N/A 7%
19 (3) For single:
20 Over Up To Rate
21 -0- $250,000 5.15%
22 $250,000 $500,000 6.50%
23 $500,000 N/A 7%
24 (4) For married, filing separately:
25 Over Up To Rate
26 -0- $250,000 5.15%
27 $250,000 $500,000 6.50%
28 $500,000 N/A 7%."
29 SECTION 2. G.S. 105-130.3 reads as rewritten:
30 "§ 105-130.3. Corporations.
31 A tax is imposed on the State net income of every C Corporation doing business in this State
32 at the rate of two and one-half percent (2.5%). five and one-quarter percent (5.25%). An S
33 Corporation is not subject to the tax levied in this section."
34 SECTION 3. This act is effective for taxable years beginning on or after January 1,
35 2021.
*DRS45357-MCxf-8*


Statutes affected:
Filed: 105-153.7, 105-130.3