@tomodwyer2005 wrote:
Hello,
If my income before selling the lot is less than $47k, isn't there a lower % for me to pay?
Ty for responding.
The capital gains stacks on top of the rest of your income.
For 2025, suppose you are single. The federal standard deduction is $15,000 and the 12% (regular) tax bracket goes up to $48,475. Suppose you have $30,000 of other taxable income. That's $15,000 subject to tax after the standard deduction. That means that the first part of the capital gains ($48,475 minus $15,000 = $33,475) will be in the zero percent (federal) tax bracket as long as this is a long term capital gain (property held more than one year). Gain that is more than $33,475 will be taxed at 15%.
In other words, the capital gains rate is determined by your total income including the gains, and not just your income without the gains.
I don't know the rules for North Carolina but @Bsch4477 did not indicate there was a threshold, so probably the entire gain is subject to North Carolina tax.
