Sen. Chitlik files high-income tax bill in North Carolina Senate

A new bill filed by State Sen. Sophia Chitlik in the North Carolina Senate aims to increase state funding for public schools through a high-income tax, according to the North Carolina State Senate.

The bill, filed as SB 1016 on April 30 during the 2025 regular session, was formally listed with the short title: ‘Fair Share for Public Schools Act.’

The following is our breakdown, based on the actual bill text, and may include interpretation to clarify its provisions.

In essence, this bill adds a new 7% state income tax on the portion of an individual’s North Carolina taxable income that exceeds $1 million, beginning with taxable years starting on or after Jan. 1, 2026. The tax is imposed annually and is not affected by any future rate reduction triggers that apply to other income tax rates. The bill directs the secretary of revenue to distribute the net proceeds of this high-income tax to the State Public School Fund for per-pupil allotments to local school administrative units, allowing up to $100,000 each year to be retained for collection and administrative costs.

A related bill, HB 1073, was also filed in the North Carolina House, introduced by Rep. Allen Buansi (and three others) on April 28, 2026.

Of the two sponsors of this bill, Chitlik proposed the most bills (78) during the 2025 regular session.

Bills in North Carolina follow a multi-step process before becoming law. A lawmaker starts by filing a bill, which is assigned to a committee for review. The bill must be read three times in each chamber. If one chamber changes the bill after the other passes it, both must agree on the final version. Once both chambers approve the same bill, it goes to the governor, who has 10 days (or 30 if the legislature is not in session) to sign, veto, or let it become law without a signature.

You can read more about the bills and other measures here.

Chitlik graduated from New York University in 2011 with a BA.

Chitlik, a Democrat, was elected to the North Carolina State Senate in 2025 to represent the state’s 22nd Senate district, replacing previous state senator Mike Woodard.