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Wake County, NC ballot

Constitutional Amendment: Income Tax Cap

Wake County, North Carolina · November 3, 2026

Caps the state income tax rate at 3.5 percent in the state constitution.

Full ballot text

Constitutional amendment to keep the State income tax rate from being raised higher than three and one-half percent (3.5%).

What it does

The state constitution caps the income tax rate at 7 percent, a limit voters added in 2018. This amendment would lower the cap to 3.5 percent for personal and corporate income taxes starting in 2027, when the personal rate is already scheduled under current law to fall to 3.49 percent. It would not cut anyone's taxes by itself; it would keep a future legislature from raising the rate above 3.5 percent without another statewide vote.

How it lines up with you

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Dossier

Researched 2026-09-23 · Claude Code research agent with web search

A yes vote would lower the NC Constitution's ceiling on the state income tax rate from 7% to 3.5%, covering both personal and corporate income tax, though the personal rate is already scheduled under current law to fall from 3.99% now to 3.49% in 2027, below that new cap; a no vote leaves the existing 7% constitutional ceiling in place. Republican legislators and the John Locke Foundation support it as a safeguard against future tax increases, while Gov. Josh Stein, Democratic legislators, and the NC Budget & Tax Center oppose it as mainly benefiting wealthy taxpayers and corporations while limiting future lawmakers' ability to fund services.

For
  • Sen. Michael Lee (R-Hanover) source
  • John Locke Foundation (Joseph Harris, fiscal policy analyst) source
Against
  • Gov. Josh Stein (D) source
  • Rep. Marcia Morey (D-Durham) source
  • NC Budget & Tax Center source
  • Down Home North Carolina and Carolina Federation ("Fund the Future" campaign) source

What it does

A "yes" vote lowers the Constitution's ceiling on the state income tax rate from 7% to 3.5%, covering both personal and corporate income tax starting in tax year 2027; a "no" vote leaves the 7% ceiling in place (NC Budget & Tax Center; Ballotpedia News). It would not cut anyone's bill immediately: the actual personal rate is 3.99% now and due to fall to 3.49% by 2027 under existing law, below the new cap (WUNC). The corporate rate is separately falling from 2% in 2026 to 0% by 2030 (Carolina Journal).

Why it's on the ballot

Lawmakers placed it through Senate Bill 1080, "Lower Taxes for All NC" (S.L. 2026-4), passed 30-18 in the Senate and 71-46 in the House on May 20, 2026 (NC General Assembly; Ballotpedia News). It follows a 2018 amendment that lowered the same cap from 10% to 7% (Ballotpedia).

Who supports it and why

Republicans such as Sen. Michael Lee (R-Hanover) call it a "commitment to the voters ... to reduce the tax burden" (WUNC). The John Locke Foundation's Joseph Harris says the cap "isn't a con – it's a safeguard to protect all taxpayers" from higher future taxes (Carolina Journal).

Who opposes it and why

Gov. Josh Stein (D) called it "a con, a cynical shell game and a millionaire protection cap," saying it won't lower anyone's taxes and shifts future gaps onto sales taxes (Carolina Journal). Rep. Marcia Morey (D-Durham) warned it will "stop services ... slow services down ... squeeze people dry" (WUNC). NC Budget & Tax Center projects at least $14 billion less future revenue, mostly benefiting top earners (NC Budget & Tax Center).

Money

Down Home North Carolina and the Carolina Federation launched a "Fund the Future" campaign in September 2026 opposing this measure and the property-tax amendment, aiming for 500,000 door-knocks and 100,000 pledges; no pro-amendment committee was found (NC Newsline).

What to watch

The amendment sets only a ceiling — the legislature can still set the rate anywhere up to 3.5% by ordinary statute, and any future rate above 3.5% needs a three-fifths legislative vote plus voter approval (NC Budget & Tax Center).

What we couldn't find

A Fiscal Research Division fiscal note specific to this amendment, and the full text of the Sept. 15, 2026 official Publication Commission explanation, published only as images (Sampson County government).

Sources (11)