North CarolinaReduce Income Tax Rate Cap from 7% to 3.5% Amendment

Reduce Income Tax Rate Cap from 7% to 3.5% Amendment

North Carolina · November 3, 2026

Reduce the maximum allowable income tax rate from 7% to 3.5%

A yes vote means The state cannot charge more than 3.5% income tax, even if lawmakers want to raise taxes in the future.
A no vote means The income tax rate cap stays at 7%, giving lawmakers the option to raise taxes up to that level if they choose.
Simple explanation
Right now, the government is allowed to charge up to 7% of your income as a state income tax if needed. This measure would cut that limit in half to 3.5%. Think of it like lowering the maximum speed limit on a highway — the government could still charge less than 3.5%, but it wouldn't be allowed to go higher, even if it wanted to.

Source: Ballotpedia

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