NC House releases budget plan. 15 things you need to know

From tax cuts to pay raises to hospital project overhauls to a more political elections board, there's a lot to dive into. Here's what you need to know.

House Speaker Destin Hall attends a bill signing ceremony on March 19, 2025.

I’ve only had two hours to dig through the full House budget. Here are 15 things I think you should know:

Tax Cuts

• Tax Cuts: The House proposal would continue GOP tax cuts, though not as aggressively as the Senate wants. Democratic Gov. Josh Stein proposed freezing the personal income tax rate at 4.25%, but the House and Senate plans would proceed with a planned cut to 3.99% for tax year 2026. The Senate budget passed last month called for more aggressive tax cuts thereafter. The House plan, meanwhile, raises the revenue targets the state would have to hit before more tax cuts kick in. This is aimed at keeping up with inflation.

• More Targeted Tax Cuts: The first $5,000 you earn in tips is all yours and not subject to taxes under the House proposal. The plan also calls for bringing back a tax holiday for the back-to-school season starting in 2026. The budget would also increase the standard deduction by $500 for individuals and $1,000 for couples.

Pay Raises

• Teacher Pay Raises: Stein’s budget called for raising average teacher pay over the next two years by 10.7%. The Senate called for a 3.3% pay hike and an additional $1,500 annual bonus. The House budget proposes an average 8.7% increase. Needless to say: These are all very different numbers, and Stein is probably more of a fan right now of House Speaker Destin Hall than Senate leader Phil Berger.