North Carolina

Corporate income tax

Combined corporate franchise and income tax return (Form CD-405) is due on the 15th day of the 4th month following the close of the income year. Corporate income tax rate is 2.25% of NC net income for tax year 2025 (rate is being phased down under prior legislation).

Extension. Form CD-419 filed by the original due date

Partnerships and S corporations

Taxed Pass-Through Entity election available for tax years beginning on or after 2022-01-01. The election is made annually by filling in the circle on the timely filed CD-401S or D-403 by the return due date including extensions; an election on a late-filed return is invalid and cannot be made or revoked after the original return is filed. Taxed S corporations/partnerships pay tax at the individual rate (4.25% for 2025). S corporations also owe NC franchise tax ($200 on the first $1,000,000 of tax base plus $1.50 per $1,000 above that; minimum $200) with the CD-401S.

Sales and use tax

Due date. Monthly and monthly-with-prepayment filers: return and payment due on or before the 20th day of the month following the calendar month. Quarterly filers: due on or before the last day of the month following the calendar quarter (last day of January, April, July, October).

Filing frequency. NCDOR assigns frequency based on the taxpayer's consistent total tax liability: quarterly if consistently less than $100 per month; monthly if consistently at least $100 but less than $20,000 per month; monthly with prepayment if consistently at least $20,000 per month.

Thresholds. Quarterly: < $100/month liability. Monthly: $100 to < $20,000/month. Monthly with prepayment: >= $20,000/month.

Prepayments. Monthly-with-prepayment filers (>= $20,000/month) must, with each monthly return due the 20th, also prepay the next month's liability equal to at least 65% of (a) the current month's tax, (b) the tax for the same month of the prior year, or (c) the average monthly tax for the preceding calendar year; two separate online payment transactions are required and the return must be filed online.

Notes

NC S corporation and partnership returns are due April 15 (4th month), not March 15. Franchise tax computation changed for 2025: the C corporation rate on the first $1,000,000 of net worth is capped at $500 and S corporations pay $200 on the first $1,000,000. Corporate income tax rate is 2.25% for 2025.