Senate Republicans Propose Significant Tax Relief for All North Carolinians
New tax cut schedule would lower personal income tax rate to 2.49% after 2026
Reminder: Gov. Cooper wants to raise your taxes to pay for his big-government agenda
Raleigh, N.C. — Today, Senate Leader Phil Berger (R-Rockingham) and Senate Finance Committee co-chairmen Sens. Bill Rabon (R-Brunswick) and Paul Newton (R-Cabarrus) filed legislation to further reduce North Carolina’s personal income tax rate.
Senate Bill 651 — “Tax Relief For All” — continues the Senate’s robust support for tax cuts and is the latest effort to ease the tax burden on all North Carolinians. The state budget passed last year ushered in scheduled tax reductions, but this new proposal further lowers rates and speeds the timeline up. Senate Bill 651 would reduce the personal income tax rate as follows:
In 2023 4.75% 4.5%
In 2024 4.6% 3.99%
In 2025 4.5% 3.49%
In 2026 4.25% 2.99%
After 2026 3.99% 2.49%
Since taking office, Gov. Roy Cooper has attacked tax cuts implemented by the Republican-led legislature. This year he’s taken that criticism to a new level by calling for a tax hike in his proposed budget.
“Republicans in the Senate have a different idea than Democrats when it comes to tax policy,” Sen. Berger said. “They would like to raise your taxes to fund a costly, big-government agenda. Senate Republicans would rather cut your taxes so you can keep more of your hard-earned money.”
North Carolina currently has one of the lowest personal income tax rates in the Southeast, and with Senate Bill 651, that rate goes down even further.
“When Republicans took majorities over a decade ago, Democrats had left us with a bloated tax system,” Sen. Rabon said. “Today our tax system is competitive, lean, and allows us to continue making improvements that benefit all North Carolinians.”
“Our tax policy has proven successful, and we are excited to build on that success,” Sen. Newton said. “We believe this tax package will return a significant amount of money to taxpayers while still maintaining the needed revenue to run the state smoothly.”
