North Carolina voters approved an amendment lowering the state constitution's maximum income-tax rate from 7% to 3.5%, according to unofficial State Board of Elections returns checked Nov. 4.

With all 2,626 precincts reporting, the measure had 2,559,732 votes for (61.92%) and 1,574,188 against (38.08%). The figures remain subject to canvass and certification.

What the amendment changes

Session Law 2026-4 replaces the 7% constitutional ceiling with 3.5%. The limit covers taxes on income, including individual and corporate income taxes. The amendment takes effect upon certification and applies to taxable years beginning on or after Jan. 1, 2027.

A constitutional ceiling and the tax rate set in statute serve different purposes. The ceiling limits how high lawmakers may set an income-tax rate; it does not require them to charge the maximum. Taxpayers' bills also depend on taxable income, deductions, exemptions and credits.

What it means for Ballantyne taxpayers

The Department of Revenue lists a 3.99% individual income-tax rate for 2026. The new amendment does not retroactively change that year's rate. Its 3.5% ceiling applies starting with 2027 tax years.

The 2026 corporate income-tax rate is 2%, already below the new ceiling. The amendment itself therefore does not require a corporate rate reduction from that level.

The separate statutory schedule for future rate cuts should not be confused with the constitutional amendment. A household's eventual savings cannot be calculated from the cap alone, and the measure does not change local property-tax rates or sales-tax rates.

Fiscal debate

Supporters of a lower cap argue it restrains future tax increases. Opponents argue it limits the state's flexibility to raise revenue for public services. The Office of State Budget and Management's analysis of scheduled income-tax cuts discusses potential revenue losses and unequal dollar benefits by income. Those projections concern rate reductions under particular statutory assumptions, not a stand-alone estimate of this amendment's cost.

The state canvass is scheduled for Nov. 24. Reporting from every precinct does not make the result certified.