A recent study published by the NC Chamber Foundation found that “North Carolina has built one of the most competitive tax climates in the country.”

The study examined state and local tax structures in North Carolina compared to ten other states across the country, including neighboring states of South Carolina, Tennessee, Virginia, and Georgia.

Among the eleven states included, the study found that North Carolina offered the most competitive business tax climate. In FY24 North Carolina’s combined state and local business taxes as a share of gross state product (GSP) stands at 3.23%, lower than all ten benchmark states and below the national average of 4.53%.

Tax collections in North Carolina have continued to rise even as tax rates have been cut.

The forward thinking reforms of conservatives in the North Carolina House has kept North Carolina in such a strong position economically.

Steady reductions in income tax rates since 2013 paired with prudent budgeting have meant North Carolina remains an economic powerhouse and consistently one of the top states nationally for business.