Raleigh -- North Carolina Voters to Decide on Two Major Tax Amendments This November
RALEIGH, N.C. — North Carolina voters will make a permanent decision regarding state and local tax policy this upcoming November. The General Assembly has officially approved two high-profile constitutional amendments for the November 3, 2026 ballot, passing them primarily along partisan lines.
Because both measures are legislatively referred constitutional amendments, they required a three-fifths supermajority in both the State House and State Senate to clear the legislature. Under North Carolina law, constitutional amendments go directly to the public for a vote and completely bypass the governor’s desk, meaning they do not require executive approval or signature to become law.
If approved by a simple majority of voters this autumn, these measures will permanently alter the North Carolina Constitution.
Amendment 1: Income Tax Rate Cap (Senate Bill 1080)
The Ballot Question: “Constitutional amendment to keep the State income tax rate from being raised higher than three and one-half percent (3.5%).”
What a "YES" Vote Means: You support amending the state constitution to lower the maximum allowable personal and corporate income tax cap from its current 7% down to 3.5%. This would establish a permanent legal ceiling, preventing future lawmakers from raising income tax rates above 3.5% without a direct vote from the public.
What a "NO" Vote Means: You oppose changing the constitution, leaving the maximum legal income tax rate cap at the current 7% limit (which was established by voters in 2018).
Context for Voters: The current flat individual income tax rate in North Carolina sits at 3.99%. Under existing state statutory law, the rate is already scheduled to automatically decrease to 3.49% by 2027. Passing this amendment does not immediately alter current tax rates; instead, it prevents future sessions of the legislature from raising them above the 3.5% threshold.
The Competing Arguments
Supporters (Largely Legislative Republicans): Proponents argue that locking a 3.5% cap into the state’s constitution enforces long-term fiscal discipline on state government. They contend it protects households from future tax hikes, lowers the cost of living, and ensures North Carolina remains highly competitive in attracting businesses compared to neighboring states with low or no income taxes.
Opponents (Largely Legislative Democrats): Opponents argue that reducing the revenue ceiling ties the hands of future lawmakers during unexpected economic recessions or natural disasters. They express concern that the cap will restrict the state's capacity to fund critical public obligations, such as public school operations, infrastructure improvements, and healthcare access.
Amendment 2: Local Property Tax Levy Limit (House Bill 1089)
The Ballot Question: “Constitutional amendment requiring limits on property tax increases by local governments.”
What a "YES" Vote Means: You support amending the constitution to mandate that the General Assembly establish a statewide "levy limit" framework. This would restrict how much total revenue county and municipal governments are allowed to collect from property taxes each fiscal year.
What a "NO" Vote Means: You oppose the amendment, leaving property tax growth decisions and revenue management completely under the jurisdiction of local city councils and county commissioners.
Context for Voters: This amendment does not set a specific numerical cap or tax rate within the constitution itself. If passed, it serves as a directive instructing state lawmakers to write separate statutory formulas later—such as tying local property tax revenue growth to rates of inflation or population increases.
The Competing Arguments
Supporters (Largely Legislative Republicans): Proponents point to rapid growth across North Carolina, noting that recent property revaluations have led to sharp tax increases for residents in growing areas. They argue that a state-mandated levy limit protects residents on fixed incomes from being priced out of their homes and forces local municipal governments to practice the same fiscal restraint as the state.
Opponents (Largely Legislative Democrats): Opponents emphasize that property taxes are the single largest source of independent revenue for local municipalities, funding public school buildings, emergency services, law enforcement, libraries, and parks. They contend that a state-imposed limit overrides local "home rule" autonomy and could force budget cuts to essential county services or lead to alternative local fee increases.
The Core Philosophy Before the Public
The upcoming vote presents two distinct approaches to state fiscal management:
A "Yes" vote prioritizes structural, permanent limitations on tax growth to protect personal and corporate income.
A "No" vote prioritizes preserving government revenue flexibility to adapt to changing local needs and economic shifts.
Voters across North Carolina will make the final decision at the ballot box on Tuesday, November 3, 2026.
Fact-Checking Sources & Reference Links
North Carolina General Assembly: Senate Bill 1080 Legislative Dashboard — Official legislative history, roll call data, and ratified text for Session Law 2026-4 establishing the 3.5% constitutional income tax ceiling.
North Carolina General Assembly: House Bill 1089 Legislative Dashboard — Official chamber voting records, bill history, and full text for Session Law 2026-5 regarding local property tax levy restrictions.
Ballotpedia: North Carolina 2026 Ballot Measures Tracker — Nonpartisan verification of state constitutional amendment processes, tracking historical caps, and official ballot certifications.
North Carolina Budget and Tax Center: North Carolina Tax Revenue and Policy Profiles — Fiscal analysis briefs verifying the statutory multi-year personal income tax reduction timeline and local county revenue portfolios.
WRAL News Coverage: NC Property Tax Amendments Committee Debate — Video broadcast coverage detailing the initial house debate, committee discussions, and public arguments from community advocates in Raleigh.