Income tax cap amendmentCap the state income tax at 3.5%
Read the full text of the measure: State Board of Elections referendum list (PDF)
In plain words
The state constitution sets the highest income tax rate North Carolina is allowed to charge. Today that ceiling is 7%. This amendment lowers it to 3.5% starting in 2027. It doesn't lower anyone's taxes right away; it stops future lawmakers from raising the rate above 3.5% without another statewide vote. (axios.com )
Before and after
| Question | Today | If it passes |
|---|---|---|
| Highest income tax rate the constitution allows | 7% | 3.5% (from 2027) |
| Rate people actually pay in 2026 | 3.99% (one flat rate for everyone) | No change |
| Rate already scheduled for 2027 | 3.49% | No change |
| Raising the rate above 3.5% later | Lawmakers can do it | Takes another statewide vote |
Numbers from the official ballot title (ballot title ); also see (axios.com )
Example
Illustration only: on $60,000 of taxable income, the most the state could ever charge drops from $4,200 a year (7%) to $2,100 (3.5%). In 2026 the actual tax at 3.99% is $2,394. (axios.com )
Who it affects most: Every income tax payer if lawmakers later want to raise rates, higher earners most, and the schools and services the state budget pays for, since more than half of it comes from income taxes.
Cost to the state: No official estimate. It does not cut current taxes; it limits future increases.
Our plain-words summary. Every line points to its source.
What your vote means
The highest income tax rate the state may ever charge drops from 7% to 3.5% starting in 2027.
The ceiling stays at 7%, so future lawmakers could raise the rate above 3.5% without a statewide vote.
Our one-line summary. North Carolina does not publish an official "what your vote means" statement; the ballot title above is the official description.
Why people want it, and why others object
Why this is on the ballot
The Legislature put this on the ballot. It changes the state constitution, so only another statewide vote can change it back. It passes with a simple majority of the votes cast on it.
- North Carolina has cut its income tax rate for over a decade; the rate is 3.99% in 2026 and set to fall to 3.49% in 2027. The corporate rate is scheduled to drop to 0% by 2030. source: axios.com
Why supporters want it
- Rep. Dean Arp (R-Union): "At its core, it's people deciding what they want to do with their own money." source: ncnewsline.com
- Rep. Keith Kidwell (R-Beaufort): "We tax people into oblivion." source: ncnewsline.com
- Supporters call the cap "a safeguard to protect all taxpayers" from future tax increases. source: axios.com
Why opponents object
- Gov. Josh Stein (D) calls it "a millionaire protection cap." source: axios.com
- Rep. Phil Rubin (D-Wake): "This amendment will put less money in working people's pockets." He warns of cuts to schools, child care, roads and public safety. source: ncnewsline.com
- Rep. Pricey Harrison (D-Guilford): "This is absolutely unnecessary and seems to be politically driven." She notes more than half the state budget comes from income taxes. source: ncnewsline.com
Who backs each side
- For: the Republican majorities in the General Assembly. Against: Gov. Josh Stein and Democratic lawmakers. No public record found of campaign money for either side. source: ncnewsline.com
In each side's own words where we could find them, quoted or summarized with a link to the source. We don't endorse either side.
What you will see on your ballot
Official ballot wording, word for word (tap to open)
The official ballot title, word for word from the State Board of Elections' official referendum list .
Constitutional amendment to keep the State income tax rate from being raised higher than three and one-half percent (3.5%).
FOR
AGAINST
Copied word for word from the State Board of Elections' official list of referendum choices for Nov. 3, 2026.
Latest news
Recent reporting from a range of outlets, newest first. We link to it; we don't endorse it.
No articles collected yet for this measure.
Full text of the measure
The exact change to the constitution is in Senate Bill 1080 on the General Assembly's website. Read it in the State Board of Elections referendum list (PDF) , or on the Legislature's page for Senate Bill 1080 (2026) , which also shows the votes in each chamber.
Read more
- State Board of Elections: 2026 statewide referendum choices (PDF)
- Axios Charlotte: the three amendments explained
- NC Newsline: the tax amendments pass the House
We link to analysis from several sources; we don't endorse it.