2004-2013 North Carolina corporation income tax rates

The "C" corporation income tax rate is a flat 6.9% of NC taxable income

(federal taxable income + - certain allowed adjustments).

Most corporations are also subject to franchise tax computed on the sum of the net book value of property and equipment plus inventories. The rate is $1.50 per $1,000 value with a $ 35 minimum tax.

Corporate income taxes and franchise taxes are both reported on Form CD-405(C corporations) or CD 401-S(S corporations).