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
*S437 -v-1*
A BILL TO BE ENTITLED 1
AN ACT TO INCREASE THE STANDARD DEDUCTIO N. 2
The General Assembly of North Carolina enacts: 3
SECTION 1. G.S. 105-153.5(a) reads as rewritten: 4
"(a) Deduction Amount. – In calculating North Carolina taxable income, a taxpayer may 5
deduct from adjusted gross income either the standard deduction amount provided in subdivision 6
(1) of this subsection or the itemized deduction amount provided in subdivision (2) of this 7
subsection. The deduction amounts are as follows: 8
(1) Standard deduction amount. – The standard deduction amount is zero for a 9
person who is not eligible for a standard deduction under section 63 of the 10
Code. For all other taxpayers, the standard deduction amount is equal to the 11
amount listed in the table below based on the taxpayer's filing status: 12
Filing Status Standard Deduction 13
Married, filing jointly/surviving spouse $25,500$26,000 14
Head of Household 19,12519,500 15
Single 12,75013,000 16
Married, filing separately 12,750.13,000. 17
…." 18
SECTION 2. This act is effective for taxable years beginning on or after January 1, 19
2026. 20