CHARLOTTE, N.C. — A new year is here, meaning new taxes are hitting North Carolina residents.
The state's gas tax increased by 2 cents from 38.5 cents to 40.5 cents. This new number takes into account the increase in population and inflation.
The gas tax in North Carolina is the state's largest funding source for road projects. As construction costs climbed year-over-year, the state felt the need to increase the gas tax in order to keep up with the state's aging infrastructure. For drivers who fill up a 15-gallon tank a week, this could mean $15 to $20 extra a year.
In 2022, unleaded gas prices in North Carolina skyrocketed in June to $4.67 a gallon. The average has cooled off since then, coming in under $3 a gallon at the end of 2022.
"What I would suggest in 2023 is to add an extra $1 or $2 for your gas budget every week," financial expert Bernadette Joy with Crush your Money Goals said. "That should make up the difference."
In addition to gas becoming more expensive in North Carolina, the state individual income tax has decreased.
It was a clean 5% but now sits at 4.75%. By 2027, anticipated cuts will chop that number down to 3.99%. The North Carolina individual income tax is a flat rate, which means everyone pays the same rate regardless of their income.
"With income tax, the fact that it is going down by that rate doesn't seem like a lot, but some people would notice an extra couple hundred dollars," Joy said.
Beyond taxes changing in 2023, there are various laws that are getting updated in the new year, including ones related to public safety reform, organized retail theft and criminal justice reform.
Contact Colin Mayfield at cmayfield@wcnc.com or follow him on Facebook, Twitter and Instagram.
WCNC Charlotte is always asking "where's the money?" If you need help, reach out to WCNC Charlotte by emailing money@wcnc.com.