North Carolina cutting state, corporate income taxes in 2019

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RALEIGH, N.C. (AP) — North Carolina is again cutting personal and corporate income tax rates.

A law passed by the Republican-led General Assembly takes effect Tuesday reducing the state tax on personal wages and other earnings from about 5.5 percent to 5.25 percent.

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The corporations will pay less than half the personal rate after Wednesday, when their state income tax obligation falls from 3 percent to 2.5 percent.

More low-income North Carolina residents also will pay no state income tax.

The families filing jointly and earning up to $20,000 will owe nothing to the state from Wednesday. The zero tax bracket has been $17,500. Individuals will pay no state income tax for 2019 if they earn up to $10,000, compared to $8,750 in 2018.