NC H1166

Establishes a temporary new income tax bracket of 8.5% for high-income earners beginning January 1, 2012, applied to income above $1,000,000 for married couples filing jointly, $800,000 for heads of household, and $600,000 for unmarried individuals.

Removes the upper income limit on the 7.75% tax bracket (previously capped at $1,000,000, $800,000, and $600,000 respectively), making it apply to all income between the lower threshold and the new $1,000,000/$800,000/$600,000 thresholds.

The 8.5% bracket expires January 1, 2014, reverting the 7.75% bracket to apply with no upper limit (extending indefinitely for income above those thresholds).

Tax brackets remain unchanged at 6% for the lowest income tier and 7% for the middle income tier across all filing status categories.

Applies retroactively to taxable years beginning January 1, 2012, with the sunset provision effective January 1, 2014.