North Carolina employers: the state income tax rate drops from 3.99% to 3.49% on Jan 1, 2027. - The 2026 budget law (S.L. 2026-41, SB 257, approved July 7, 2026) rewrites G.S. 105-153.7 with a fixed schedule: 3.49% for 2027-2029, 3.24% for 2030-2032, 2.99% after 2032. - Update payroll withholding for 2027 when NCDOR posts its 2027 withholding tables (NC-30). - New for gaming: licensed online sports wagering operators and advance deposit wagering licensees must withhold NC tax on winnings paid on or after Jan 1, 2027 whenever federal withholding is required (S.L. 2026-31, new G.S. 105-163.2C). Source: NC General Assembly session laws (ncleg.gov) and NC Department of Revenue (ncdor.gov). Not legal advice. Free compliance check: www.rulereddy.com #NorthCarolina #Payroll #SmallBusiness #IncomeTax #Compliance Photos via Wikimedia Commons (CC BY/BY-SA/CC0/PD): Abbylabar, Colin, DiscoA340, Dough4872, Energyme, HangingCurve, Harrison Keely, Linason Blessing, LoMit, Matti Blume, Michael Jester, MoneyBlogNewz, P. Hughes, Precisionviews, Roland Arhelger, Shixart1985, Warren LeMay. - @rulereddy