Bill > S437

This bill proposes to increase the standard deduction amounts for North Carolina state income tax filers across all filing status categories, effective for taxable years beginning on or after January 1, 2026. Specifically, for married filing jointly or surviving spouse taxpayers, the standard deduction would rise from $25,500 to $26,000; for head of household filers, it would increase from $19,125 to $19,500; for single filers, the standard deduction would go up from $12,750 to $13,000; and for married filing separately taxpayers, it would also increase from $12,750 to $13,000. The standard deduction is a predetermined amount that reduces a taxpayer's taxable income before calculating the amount of taxes owed, which can help lower the overall tax burden for middle-class taxpayers. The bill maintains the existing rule that taxpayers who are not eligible for a standard deduction under federal tax code section 63 would continue to have a standard deduction of zero.

https://www.ncleg.gov/BillLookUp/2025/S437