Const. Ad. - Income Tax Rate Cap Modification.

This bill proposes to change the North Carolina Constitution to cap the state's maximum income tax rate at five percent, down from the current seven and a half percent. The measure would directly affect all North Carolina taxpayers by limiting the highest tax rate the state can impose on individual earnings. Instead of taking effect immediately, the bill requires voters to approve this change in a referendum scheduled for the November 3, 2026, general election. If a majority of voters support the amendment, the new five percent limit would apply to taxable years beginning on or after January 1, 2027. If voters reject the proposal, the existing income tax rules will remain unchanged.