Rep. Dean Arp (R-Union) recognized North Carolina's progress in the area of tax climate. | Facebook
Rep. Dean Arp (R-Union) recognized North Carolina's progress in the area of tax climate. | Facebook
A Republican state lawmaker highlighted North Carolina's Top 10 ranking when it comes to competitive tax codes.
Rep. Dean Arp (R-Union) said in an Oct. 21 Facebook post that North Carolina is "in the Top 10. We were 44th just seven years ago," about the 2021 Tax Foundation's report.
The State Business Tax Climate Index ranked North Carolina 10th, with top billing going to Wyoming.
According to the foundation, the State Business Tax Climate Index allows government, business leaders and taxpayers to evaluate how their states' tax systems compare with others. Instead of showing how much is collected in taxes, the index shows how well states structure tax systems.
States with the best tax systems are the most competitive about attracting and retaining new businesses and more effective at generating economic development and employment growth, the foundation said.
The index compared more than 120 variables across five major taxation areas - corporate taxes, individual income taxes, sales taxes, unemployment insurance taxes, and property taxes.
North Carolina's top individual income tax rate is 5.25%, the foundation reported. The top corporate income tax rate is 2.5%. The state sales tax rate is 4.75%, with the combined state and average local sales tax rate coming in at 6.98%.
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