NC House Republicans committed to reducing taxes responsibly

The recently passed North Carolina House Republican budget is a masterclass in fiscal responsibility, delivering meaningful tax relief to residents while steadfastly avoiding tax increases — a critical achievement as the state rebuilds from the catastrophic impact of Hurricane Helene.

This budget, a key part of the ongoing negotiations in the General Assembly, strikes a delicate balance between putting more money in the pockets of North Carolinians and ensuring the state’s financial stability to support recovery efforts in western North Carolina. It’s a forward-thinking plan that deserves applause for its commitment to taxpayers and communities alike.

At its core, the House budget prioritizes immediate financial relief for working North Carolinians. Starting in 2026, the standard income tax deduction will increase: married couples filing jointly will see a $1,000 boost to $26,500, heads of household a $750 increase to $19,875, and single filers or those married filing separately a $500 rise to $13,250. These changes will reduce taxable income for millions of North Carolinians, offering a direct benefit to working families.

In addition to the income tax deduction increase, the House plan introduces a $5,000 deduction for tipped income, a lifeline for service industry workers — servers, bartenders, barbers, delivery drivers and others — who rely on tips to make ends meet. This provision recognizes the economic realities of a vital workforce, easing their tax burden without adding complexity.

North Carolina families will also welcome the budget’s back-to-school sales tax holiday, set to begin the first weekend of August 2026. This initiative exempts clothing and footwear priced at $100 or less per item, school supplies and instructional materials up to $300, computers up to $3,500, computer supplies up to $250 and sports equipment up to $50. By waiving the sales tax on essentials, the holiday will save families hundreds of dollars. These measures collectively demonstrate the House’s commitment to supporting North Carolinians without resorting to tax increases.

Crucially, the budget avoids tax increases, rejecting the Senate’s proposed sports betting tax hike, which could have strained both bettors and businesses. Instead, it recalibrates revenue triggers for income tax cuts to account for inflation and population growth, securing a 0.5% income tax cut, lowering the rate to 3.99%, with the potential for three additional 0.5% cuts by 2034 if fiscal benchmarks are met. This approach, informed by Moody’s Analytics and State Demographer data, avoids the Senate’s projected deficits, which could have strained funding for critical recovery efforts.

The House’s strategy responsibly lowers taxes while ensuring budget stability and preserves funds for essential services. As western North Carolina rebuilds from Helene’s devastation, the House budget stands as a beacon of responsible governance. It delivers immediate tax relief, supports families and workers and fosters economic growth — all without raising taxes. By contrast, the Senate’s riskier approach could undermine the state’s ability to respond to ongoing needs.

House Republicans have crafted a budget that not only meets the moment but also positions North Carolina for a resilient future, proving that tax relief and fiscal stability can go hand in hand. As negotiations with the Senate proceed, this budget should serve as a model for putting taxpayers first while safeguarding the state’s recovery.

Rep. Neal Jackson lives in Bennett and represents House District 78 in the North Carolina General Assembly.