2017 North Carolina corporation income tax rate

The NC legislature passed a sweeping tax reform bill. Effective January/1/16 . The "C" corporation income tax rate is reduced to a flat 3.0% of NC taxable income (federal taxable income + - certain allowed adjustments) for 2016.

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 $ 200 minimum tax.

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