See all 50 states on one map and compare side-by-side. Start 7-day free trial — no card required
North Carolina
Corporate Income Tax Rate at a Glance
North Carolina's top corporate income tax rate is 2.25%, applied as a flat rate. This places North Carolina in the "Low (under 5%)" tier among U.S. states.
Rate Structure (Flat vs. Graduated)
2.25% flat rate for tax year 2025 (down from 2.5% in 2024). Phasing down to 2.0% (2026), 1.0% (2028-2029), and 0% (2030 and after) under 2021 reform.
Franchise Tax / Annual Privilege Tax
North Carolina imposes a Franchise Tax on corporations: $1.50 per $1,000 of net worth apportioned to NC, with a $200 minimum. The franchise tax was simplified in 2025 reforms.
S-Corp & Pass-Through Treatment
North Carolina recognizes federal S-corp election. Pass-through entities may elect to pay tax at the entity level under NC's PTE election at 4.5% (matching the individual flat tax rate for 2025).
Official State Revenue Department
For current corporate tax rules in North Carolina, consult the state's official source at https://www.ncdor.gov/. Rates and rules change annually — verify with a qualified tax professional before taking any action.
Related guides
More from Alabama · Corporate Tax
See all corporate taxpairs →Moving to North Carolina from elsewhere · Corporate Tax
Corporate income tax rates change frequently as states enact reform packages and phase-down schedules. Always verify current rates with the state's department of revenue and your tax advisor before making business decisions. This information is for educational purposes only and is not tax or legal advice.