Why is the tax rate so high in this state? (sales, buying)

[movingover]

8% for couples making over $200k? That is 1.2% higher than NY!! Can anyone explain this? Is the state government well run? Do they make good use of your money? etc.?

[castufari]

It's run by Democrats.

[BigJon3475]

North Carolina collects income taxes from its residents utilizing four tax brackets.

For single taxpayers:
-- 6 percent on the first $12,750 of taxable income.
-- 7 percent on taxable income between $12,751 and $60,000.
-- 7.75 percent on taxable income between $60,001 and $120,000.
-- 8 percent on taxable income of $120,001 and above.

For married persons filing joint returns:
-- 6 percent on the first $21,250 of taxable income.
-- 7 percent on taxable income between $21,251 and $100,000.
-- 7.75 percent on taxable income between $100,001 and $200,000.
-- 8 percent on taxable income of $200,001 and above.

North Carolina state taxes

Depending on what your property tax rates were now think about property taxes and the 1.2% means little to nothing if in a high income tax area as opposed to a moderate one. Overall cost of living for the most part will be cheaper here most like unless you pick the most costly areas to live in.

[movingover]

Originally Posted by BigJon3475

North Carolina collects income taxes from its residents utilizing four tax brackets.

For single taxpayers:
-- 6 percent on the first $12,750 of taxable income.
-- 7 percent on taxable income between $12,751 and $60,000.
-- 7.75 percent on taxable income between $60,001 and $120,000.
-- 8 percent on taxable income of $120,001 and above.

For married persons filing joint returns:
-- 6 percent on the first $21,250 of taxable income.
-- 7 percent on taxable income between $21,251 and $100,000.
-- 7.75 percent on taxable income between $100,001 and $200,000.
-- 8 percent on taxable income of $200,001 and above.

North Carolina state taxes

Depending on what your property tax rates were now think about property taxes and the 1.2% means little to nothing if in a high income tax area as opposed to a moderate one. Overall cost of living for the most part will be cheaper here most like unless you pick the most costly areas to live in.

True, but that doesn't really address my question, which is by what basis do they feel the need to tax at this insane level, and what do they do with the money? Who benefits, anyone?

I can move to NH and pay 0% income tax at the state level, have just as inexpensive (comparatively) housing and property tax when measured against NY.

What makes NC need up to 8% of people's income for those in that bracket, or the high rates in the other brackets as well?

[BigJon3475]

The incentives to bring in the companies that pay those people those high salaries?

Roads, schools, infrastructure. Are you asking if NC is competent? If so a better question would be to center in on a location and ask it outright.

[castufari]

Roads, especially roads. Education has always been a big thing here. Then you have the State agencies who get their cut - DHHS here has something like 19k people on board. Then the college system and their needs, etc.

If you're going to compare NY and NC, how are the property taxes there? Sales taxes on items? Gas tax? "Sin" taxes?

[beckycat]

If you're paying higher income tax, you probably pay less on other taxes, such as property tax. Every state uses different taxes to collect funds. Some states charge a higher sales tax, such as 9%, but no income tax. They get you one way or another.

[mm34b]

NC ranks 20th highest nationally according to The Tax Foundation. Scroll down for 2008 rankings of all states.

Combined State & Local Tax Burden (1977-2008)

http://www.taxfoundation.org/files/sl_burden_1977-2008-20080807.pdf (broken link)

[mm34b]

Originally Posted by movingover

8% for couples making over $200k?

No, the maximum personal state income rate was reduced to 7.75% on January 1, 2008.

2008 NC Tax Law Changes - http://www.dornc.com/practitioner/la...es_2008.pdf#s1

[aphorista]

Thanks mm34b for the link. It is very helpful. Do you know of something like this but as it affects retired people? I am trying to plan for retirement and am thinking about buying some property. Thanks in advance.