In North Carolina, Tax Relief Is Finally Catching Up to Work

The Carolinian Newspaper published this article on Thursday, April 16. 

In North Carolina, the economy runs on work ... long shifts, overtime hours, and industries that still depend on people showing up and putting in the time. More than 5 million North Carolinians are employed, and the state has an unemployment rate under 4 percent.

A significant part of that economy is built on production and physical labor. Manufacturing alone employs more than 467,000 workers statewide and contributes about 15 percent of North Carolina’s GDP, making it one of the largest sectors in the state. Tax policy is starting to reflect the reality of the employment landscape here.

In 2026, families across North Carolina are seeing larger refunds because taxes on work were reduced through the Working Families Tax Cuts Act (WFTC). By preventing nearly $2 trillion in tax increases nationally and eliminating taxes on eligible overtime and tips, the law aligns the tax code with how people actually earn a living.

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