CHARLOTTE, N.C. — QUESTION: Does North Carolina have the lowest Corporate Tax rate in the country?
ANSWER: Yes, North Carolina Corporate Tax rate is the lowest compared to other states that impose a Corporate Tax. North Carolina's rate is at 2.5 percent.
WHAT WE FOUND:
Out of the forty-four states that collect corporate taxes, North Carolina's rate ranks the lowest at 2.5%, with New Jersey the highest at 11.5%.
"The difference between North Carolina's and other states isn't that big. We do have one of the lowest corporate tax rates in the country, but it not like ours is zero, and everyone else's is 30," said Hoopes.
Nevada, Ohio, Texas, and Washington have a gross receipt tax for corporations but no corporate tax rate. At the same time, Wyoming and South Dakota do not have a corporate tax rate or gross receipts tax.
"The rate isn't the only thing that matters. That's why I generally say we generally have low tax rate and favorable tax rate here," said Hoopes.
According to Hoopes, a low corporate tax rate obviously helps. However, companies are also looking at North Carolina for other reasons.
A Republican proposal in the State's legislature aims to eliminate North Carolina's corporate tax by 2028. The bill still needs to pass the senate finance committee.
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