2014 North Carolina corporation income tax rate

On August 23, 2013 the NC legislature passed a sweeping tax reform bill. Effective January/1/14 the "C" corporation income tax rate is reduced to a flat 6.0% 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).