Raleigh, N.C. – The state Department of Revenue predicts 1.5 million working North Carolinians will not owe state income tax on their earnings by 2019, primarily middle to low-income earners filing 30% of all returns.
The Department of Revenue projections apply the effect of Republican-led tax relief to previous years’ data on actual returns.
“Working families deserve to feel more secure in their finances, so we ensured maximum tax relief for North Carolinians who need it most,” said House Speaker Tim Moore.
The state’s tax agency now estimates 354,326 working adults will be removed from the rolls by 2019 as a result of Republican-led tax relief, a 23% increase in North Carolinians whose earnings are exempt from state income tax.
The state General Assembly has tripled the standard deduction for working families, saving those who make the least a larger percentage of their tax liability than higher earners.
In addition to lowering income taxes for working North Carolinians, the Republican-led state General Assembly reduced the state sales tax rate and cut the corporate tax rate to the lowest in the country.
The state General Assembly also repaid billions of dollars in debt, saved a record $1.8 billion rainy day reserve and delivered four consecutive teacher raises since 2014.
North Carolina’s unemployment rate has fallen below the national average.