GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 2025

S                                                                                                                                                     1

SENATE BILL 437

Short Title:      Middle Class Momentum Act.		(Public)
Sponsors:	Senators Grafstein, Everitt, and Bradley (Primary Sponsors).
Referred to:	Rules and Operations of the Senate

March 25, 2025

A BILL TO BE ENTITLED

AN ACT to increase the standard deduction.

The General Assembly of North Carolina enacts:

SECTION 1.  G.S. 105‑153.5(a) reads as rewritten:

"(a)      Deduction Amount. – In calculating North Carolina taxable income, a taxpayer may deduct from adjusted gross income either the standard deduction amount provided in subdivision (1) of this subsection or the itemized deduction amount provided in subdivision (2) of this subsection. The deduction amounts are as follows:

(1)        Standard deduction amount. – The standard deduction amount is zero for a person who is not eligible for a standard deduction under section 63 of the Code. For all other taxpayers, the standard deduction amount is equal to the amount listed in the table below based on the taxpayer's filing status:

Filing Status                                                   Standard Deduction

Married, filing jointly/surviving spouse                  $25,500$26,000

Head of Household                                                      19,12519,500

Single                                                                            12,75013,000

Married, filing separately                                           12,750.13,000.

…."

SECTION 2.  This act is effective for taxable years beginning on or after January 1, 2026.