North Carolina Voters Will Face Tax Cap Measures in 2026
Statewide amendments could cap income tax rates and limit local property tax hikes for residents.
Updated on Sept. 25, 2026 in Taxes
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North Carolina voters will decide on two constitutional tax amendments in November 2026 that could fundamentally alter state and local revenue streams. These measures propose capping income tax rates and granting the state Legislature authority to limit local property tax increases.
Why it matters
Proponents suggest these amendments will shield taxpayers from future increases, while opponents raise concerns about potential revenue shortfalls for essential local services. If passed, the changes could force communities to choose between cutting public services or raising fees to bridge budget gaps.
A report on a hypothetical 2% local levy limit estimates average annual savings of $84 per homeowner, while highlighting a $950 million reduction in local tax revenue. Currently, 66% of revenue in Buncombe County comes from property taxes, with 32% of school funding sourced locally.
The players
North Carolina State Legislature
The state governing body that would gain the authority to cap local property tax increases if voters approve the measures.
Buncombe County
A local government entity whose heavy reliance on property taxes for public services serves as a case study for the proposed amendments.
The details
The proposed amendments would limit both individual and corporate income tax rates to 3.5%. Currently, the personal income tax rate is 3.99% and is scheduled to drop to 3.49% in 2027, while the corporate tax rate of 2% is set to be eliminated by 2030. By capping these rates, the state aims to limit future tax growth, though analysts suggest residents might see higher fees or service cuts as local governments manage the resulting decrease in tax revenue.
Timeline
North Carolina voters will decide on the two constitutional tax amendments in November 2026.
The state personal income tax rate is scheduled to decrease to 3.49% in 2027.
The state corporate tax rate is scheduled for total elimination by 2030.
Money Landscape
These amendments arrive as North Carolina is already following a multi-year plan to lower personal income tax rates and phase out the corporate tax. The proposed constitutional cap would effectively lock these rates at a ceiling, altering the state's long-term tax policy trajectory.
Homeowners should evaluate how a potential 2% limit on property tax levies could affect funding for their local schools and public safety services. If you have concerns about how these changes might impact your specific tax liability or local community services, consider speaking with a tax professional.
The takeaway
These amendments present a trade-off between potentially lower tax burdens and the stability of local public services. Residents should track legislative discussions in Raleigh to understand how their specific jurisdiction might compensate for reduced property tax revenue.
What happens next
Voters will cast their ballots on these constitutional amendments in the November 2026 general election.
Further reading
Learn more about how state fiscal policies shape your household budget in our guide to North Carolina Taxes.
Source note: This article includes information reported by Blueridgenow.
Live Poll
Should your state legislature restrict the ability of local governments to increase property taxes?
