12/30/2025
Starting January 1st, new NC and federal laws and tax changes begin.
First, North Carolina:
•The individual state income tax rate drops to 3.99%.
(Down from 4.25%)
•The state officially recognizes only male and female s*xes, impacting birth certificates and school policies.
•Parents can restrict library books for children and students must use sleeping quarters (like on field trips) according to their s*x assigned at birth.
•Local school boards must adopt internet safety policies covering student data, social media and hacking.
•Local candidates must complete training before running, and PACs face stricter registration/reporting.
•Healthcare employers must have prevention plans, investigate incidents and report to the state.
•Expands protections and notices for domestic/s*xual violence and hate crime victims.
•Clinical Pharmacist Practioners gain more authority under physician agreements.
•Healthcare workers can waive meal breaks with written consent.
•Certain private school staff can now carry weapons with permits and school approval.
•Vehicle owners will get more control over renewal timing.
•The new NC investment authority officially takes over management of all state investments including retirement funds for teachers and public employees.
•A new NC interstate medical licensure compact creating a faster way for doctors to get licensed here and improves access to Healthcare.
•Estate law attorneys can now keep electronic records of original wills and use certified copies in probate if the original is lost, adding new flexibility for families.
New Federal laws:
•No taxes on tips up to $25,000 and no tax on overtime up to $12,500.
•Efficiency standards lowered on everyday appliances such as water heaters, lowering costs.
•A new rule will now allow individuals who claim the standard deduction to deduct up to $1000 in qualifying charitable cash contributions ($2,000 for married couples filing jointly).
•The IRS also announced higher standard deductions ($32,200 married, $16,100 single) and an increased estate tax exemption ($15 million) for the 2026 tax year, reflecting inflation.
•No tax on American Made car loan interest.
•Senior social security deduction.
•The 2026 business standard mileage rate increases to 72.5 cents per mile.
•Child Tax Credit boosted to $2200.
•Trump Child savings accounts continue with each child born receiving a one time $1,000 government seed contribution and allowing families to contribute up to $5,000 annually (beginning July 4, 2026). The funds will be invested in a broad stock market index, remain private property under guardian control until age 18 and if fully funded and left untouched, could grow to as much as $1.9 million by age 28.
Dell is also contributing an additional $250 to each account in certain zip codes with median incomes below $150 k.
•Green New Deal regulations cut lowering car prices.
•Stricter work requirements apply for able bodied adults receiving SNAP benefits.
•Certain gambling winnings below a higher threshold will no longer trigger mandatory reporting forms. For casual gamblers, the adjustment reduces paperwork and administrative burdens.
