North Carolina Will Vote on Tax Amendments in 2026

Voters will decide on constitutional caps for income taxes and local property tax growth in November 2026.

Updated on Sept. 25, 2026 in Taxes

North Carolina Will Vote on Tax Amendments in 2026

Live Poll

Should your state legislature restrict the ability of local governments to increase property taxes?

North Carolina voters will head to the polls in November 2026 to decide on two constitutional tax amendments. The proposals would cap individual and corporate income tax rates at 3.5% while allowing the state legislature to limit local property tax increases.

Why it matters

Republicans maintain these measures will protect taxpayers from future hikes, while opponents warn the changes could severely reduce funding for essential local services and public schools.

A report suggests a 2% levy limit would reduce local government revenue by $950 million. This amount is equivalent to the funding required for 16,000 police officer salaries.

The players

North Carolina General Assembly

This is the legislative body responsible for drafting the proposed tax amendments and determining state fiscal policy.

The details

The state currently maintains a 3.99% personal income tax rate, set to decrease to 3.49% in 2027, and a 2% corporate tax rate scheduled for elimination by 2030. In Buncombe County, property taxes account for 66% of local revenue and cover 32% of public school funding, underscoring potential risks if property tax growth is restricted.

Voters will cast their ballots for the constitutional tax amendments in November 2026.
The personal income tax rate is scheduled to decrease to 3.49% in 2027.
The state is scheduled to eliminate its corporate tax rate by 2030.

Market Dynamics

The proposed constitutional tax amendments represent a formalization of the state's long-term pivot toward the North Carolina corporate tax elimination plan of 2030. These changes follow a pattern of aggressive state-level fiscal restructuring designed to alter the competitive landscape for businesses and residents.

If the amendments pass, homeowners may see limited growth in property tax bills but face potential service cuts or fee increases to offset revenue shortfalls. Residents should prepare for a landscape where lower income tax burdens are balanced against shifts in how local government services are funded.

The takeaway

The upcoming vote presents a trade-off between immediate tax rate protections and the long-term funding stability of local communities. Voters will need to weigh whether the potential for lower personal and corporate taxes outweighs the risks to public school and municipal service budgets.