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Tee difference between a progressive and a regressive tax is that a progressive tax is a direct form of taxation where the rate of taxing increases as income increases, whereas a regressive tax is an indirect tax where the rate of taxing decrecreases as income increases.
Effective with the 2014 tax year, North Carolina eliminated progressive income tax rates. All state taxpayers now face a 5.8 percent rate, which decreases to 5.75 percent for the 2015 and subsequent tax years. More on North Carolina taxes can be found in the tabbed pages below. 1  Income. 2  Sales.