Social Security retirement benefits are exempt from income taxes in North Carolina, said Trevor Johnson, NC Department of Revenue spokesman.
But beginning Jan. 1, 2017, other forms of retirement income are taxed at the state’s uniform individual income rate of 5.499%, Johnson said.
He added that there are also exemptions for certain North Carolina residents who are qualified under the “Bailey Act.”
“This court decision pertains to certain former local, state and federal employees who had certain levels of public service prior to 1989,” Johnson said.
Date posted: January 10, 2017
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