Department of Revenue Revises Publication NC-30, Income Tax Withholding Tables and Instructions for Employers

The Department has revised the publication NC-30, Income Tax Withholding Tables and Instructions for Employers, to reflect the reduction in the highest individual income tax rate from 8.25% to 8% effective for wages paid on or after January 1, 2007.  The rate reduction is reflected only in the Formula Tables for the Percentage Method Withholding Computations and the Formula Tables for the Annualized Wages Method Withholding Computations on pages 14 through 18.   Employers who use the Formula Tables should consider the reduction in the tax rate when determining the amount to withhold on employees.  No changes were required to the Wage Bracket Tables beginning on pages 20 through 61.