Legislative Bulletin

OCTOBER 31, 2001


State

Per-Capita Tax Burden
Current National Ranking
Previous National Ranking

Tax Burden as % of Income
  Current National Ranking
    Previous National Ranking

 

 

 

North Carolina

$2,649

29th

28th

10.26%

35th

33rd

 

Florida

$2,663

28th

31st

9.81%

44th

43rd

Georgia

$2,761

25th

29th

10.40%

32nd

37th

South Carolina

$2,333

44th

44th

10.18%

37th

39th

Tennessee

$2,142

49th

48th

8.59%

49th

49th

Virginia

$2,846

21st

25th

9.83%

42nd

42nd

U.S.

   $2,992

 10.76%

North Carolina falls from 28th to 29th
in nation in state and local tax burden

Despite the assertions of some that North Carolina has become a high-tax state, citizens here pay a smaller portion of their incomes on state and local taxes now than they did a few years ago, according to the N.C. Budget and Tax Center, a Raleigh think tank.

According to its analysis of Census Bureau data covering state and local government finances for 1998 and 1999, the center said North Carolina fell from 28th to 29th in the nation in per-capita state and local tax burden and from 33rd to 35th in tax burden as a share of income. See chart above.
 
 “The census data also shows that Georgia has a higher tax burden than North Carolina by any measure,” said Dan Gerlach, director of the Budget and Tax Center. “Florida and Virginia have higher per-capita tax burdens than North Carolina. While some Southeastern states had increases in tax burden, North Carolina experienced a decrease.”

The census data also shows that North Carolina’s per-capita state and local tax burden is $343 smaller than the national average and is 5 percent below the national average as a share of personal income. “Those who attempt to portray North Carolina as a high-tax state have little evidence to support their position,” Gerlach added.

Gerlach also said the center estimates that the top 1 percent of taxpayers in terms of income pay about 15.9 percent of state and local taxes and have 16.7 percent of personal income.


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