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New Law Increases NC Zero-Tax Bracket, Targets Online Sales

1040 tax form
Ken Teegardin
Flickr / Creative Commons Attribution-Share Alike 2.0 Generic
North Carolinians will have an increased standard deduction in 2020.

RALEIGH — North Carolina income tax filers will get more generous breaks on their returns soon but could pay more upfront sales taxes for online purchases in a measure Democratic Gov. Roy Cooper has signed into law.

Cooper's signing announcement came several hours after he vetoed another bill that would have reduced corporate franchise taxes.

The Republican-penned measure signed on Friday increases the standard deduction — meaning the amount of income on which filers pay no taxes — by $750 to $1,500 starting in 2020. For a single filer, the deduction will now be $10,750.

The new law also directs companies like Amazon to collect sales taxes on consumers buying products they offer through third-party retailers. It's designed to collect more taxes from out-of-state retailers, given a recent U.S. Supreme Court decision.

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