CHARLOTTE — The North Carolina Department of Revenue is waiving penalties for delayed tax returns to assist Hurricane Helene victims and lowering income tax rates in 2025, the Charlotte Observer is reporting.
North Carolina began accepting tax returns on Jan. 27 with a deadline to file of April 15.
But all N.C. taxpayers are eligible for penalty relief in 2025.
The state will not assess penalties for returns so long as the return is filed by May 1, 2025.
Taxpayers in disaster counties are also eligible for interest relief for interest accrued between Sept. 25 and May 1.
The IRS has extended the filing deadline for federal tax returns for all North Carolina residents to May 1.
Additionally, the Charlotte Observer reported that a state law went into effect in January that lowered the North Carolina income tax rate to 4.25% from 4.5%. The rate will further drop in 2026 to 3.99%.
North Carolina State University accounting professor Roby Sawyers told The Charlotte Observer that the N.C. tax rate has dropped gradually over the last decade.
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