New York State Tax vs. North Carolina State Tax

Both the states of New York and North Carolina charge their residents tax, and they have wildly different rates. New York's rates for both sales and income tax tend to be higher than those in North Carolina, especially after the sales tax is adjusted for the city in which it is being charged.

As of the 2010 tax year, New York state maintains seven different tax rates ranging from 4 percent all the way up to the 8.97 percent tax, which applies to income over $500,000. The lowest rate applies to income below $8,000 for a single person or $16,000 for a married couple. The 6.85 percent rate, which falls between the 4, 4.5 and 5.25 percent rates on the low end and the 7.85 and 8.97 percent rates on the top end, affects a broad range of incomes between $20,000 and $200,000 for a single person and $40,000 and $300,000 for a married couple filing jointly. Some cities in New York, such as New York City, add an additional city income tax on top of these state rates.

Although New York's base sales tax rate appears reasonable at 4 percent, the regional adjustments bring it in line with some of the highest sales tax rates in the country. Some upstate counties and cities have rates as low as 7 percent combined while New York City has a combined sales tax rate of 8.875 percent, which includes the 4 percent state sales tax, three-eighths percent Metropolitan Commuter Transportation District sales tax and 4.5 percent city sales tax.

North Carolina has a much simpler income tax system than New York with only three brackets -- 6, 7 and 7.75 percent. Single people pay the 6 percent rate on income up to $12,750 and the 7 percent rate on income between $12,751 and $60,000. The highest rate only applies to income over $60,001. The bracket thresholds for married couples filing jointly occur at $21,550 and at $100,001. Although these rates may look analogous to New York's income taxes, bear in mind that the cost of living and, with it, incomes tend to be lower in North Carolina than in high-cost New York.

North Carolina's basic sales tax is actually higher than New York's at 4.75 percent. However, their local additions are typically less than those in New York, with counties adding on either 2, 2.25 or 2.75 percent for a blended rate of 6.75 to 7.5 percent. North Carolina also taxes non-prepared food at 2 percent, and airplanes and boats at 3 percent, with a cap of $1,500 per purchase.