House Republicans Secure Historic Budget Deal: Major Teacher Raises, Tax Relief, and Investments in North Carolina Families

The North Carolina House Republicans have reached a landmark budget agreement with Senate leaders, delivering the largest teacher pay raises in nearly 20 years, tax relief for families, and strong investments in education, public safety, and economic growth.

Major Wins for Teachers and Education

At the heart of this historic deal is a transformative investment in North Carolina’s teachers—the backbone of our public schools.

• Average 8% teacher pay raise — the largest average increase since 2006.  

• The starting teacher salary has increased to $48,000 (before local supplements), making North Carolina #1 in the Southeast for new teachers.  

• Bonuses for veteran educators and continued strong support for public schools.

Support for State Employees and Law Enforcement

• 3% raise for state employees plus one-time bonuses of up to $1,750.  

• 13% across-the-board raise for state law enforcement and correctional officers at the Department of Adult Corrections.

• $1,750 bonus for local law enforcement.

These investments recognize the dedication of our public servants and help retain top talent in critical roles.

Tax Relief for Families and Economic Growth

• Gradual reductions in the personal income tax rate: down to 3.49% (2027–2029), 3.24% (2030–2032), and 2.99% (2033–2034), with potential for further revenue-triggered cuts.  

• No changes to the scheduled phase-out of the corporate income tax.  

• Two constitutional amendments for the November 2026 ballot: a cap on the state income tax rate at 3.5% and a limit on local property tax increases.

Our budget framework keeps more of YOUR money where it belongs — in YOUR wallet. We’re cutting taxes while delivering record support for teachers and schools.

Moving North Carolina Forward

This historic budget deal reflects House Republicans’ commitment to strong schools, safe communities, lower taxes, and limited government. It rewards the hardworking taxpayers, educators, and public servants who make North Carolina great—while keeping our state competitive and fiscally sound. House Republicans will continue working to pass a final budget that delivers these wins for every corner of the state. North Carolina families deserve nothing less.