North Carolina Income Tax Calculator 2026

Calculate your North Carolina state income tax for 2026. North Carolina has a flat 3.99% income tax rate.

By Konstantin Iakovlev · Updated October 19, 2026 · Methodology

$
Deduction

Federal Income Tax

$7,670.00

Effective Tax Rate

10.23%

Marginal Tax Rate

22%

FICA (SS + Medicare)

$5,737.50

Total Tax Burden

$15,891.28

After-Tax Income

$59,108.73

Tax Calculation Breakdown

Gross Income$75,000.00
Above-the-Line Deductions- $0.00
Adjusted Gross Income (AGI)$75,000.00
Standard Deduction- $16,100.00
Taxable Income$58,900.00
10% on $0.00 – $12,400.00$1,240.00
12% on $12,400.00 – $50,400.00$4,560.00
22% on $50,400.00 – $105,700.00$1,870.00
Federal Income Tax (before credits)$7,670.00
Federal Income Tax (after credits)$7,670.00
Social Security (6.2%)$4,650.00
Medicare (1.45%)$1,087.50
Total FICA$5,737.50
North Carolina Taxable Income$62,250.00
North Carolina Income Tax$2,483.78
Total Tax$15,891.28
After-Tax Annual Income$59,108.73
Monthly Take-Home$4,925.73

Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.

North Carolina Income Tax Overview

North Carolina levies a single flat income tax of 3.99% on taxable income, a structure the state moved to after years of operating graduated brackets. Whether you earn $40,000 or $400,000, the same rate applies to every taxable dollar, which is what sets North Carolina apart from neighbors like Georgia and South Carolina that historically used sliding scales. The North Carolina Department of Revenue administers the tax, and most residents file a Form D-400 each spring alongside their federal return.

What softens the flat rate is a generous standard deduction: a single filer can shield the first $12,750 of income before the 3.99% even begins to apply, and married couples get a larger amount. North Carolina largely does away with the separate itemized-deduction maze for state purposes and instead leans on that deduction plus a child deduction. This state tax stacks on top of, and is entirely separate from, the federal income tax you owe the IRS, so your total bill is the federal brackets plus a clean 3.99% layer on your state taxable income.

North Carolina Income Tax Rate

3.99%

Flat rate — same for all income levels

North Carolina Tax Snapshot

State Sales Tax 4.75%
Avg. Combined Sales Tax (with local) 7.10%
Avg. Property Tax 0.62%
Minimum Wage $7.25/hr

Official Sources:

North Carolina Income Tax FAQ

Who has to pay North Carolina income tax?
North Carolina residents owe the 3.99% flat tax on their taxable income, and nonresidents owe it on income earned from North Carolina sources, such as wages for work performed in the state. Part-year residents are taxed on income earned while living there. People whose income falls below the standard deduction threshold may owe nothing, but filing a Form D-400 is still required if you had North Carolina withholding and want a refund.
How does the flat 3.99% stack on top of my federal tax?
The two systems run in parallel and don't interact directly. The IRS applies its graduated federal brackets to your federal taxable income, while North Carolina applies one flat 3.99% to its own taxable-income figure after the standard deduction. You end up paying the federal amount plus the state amount, each computed on its own return, so a North Carolina resident's marginal state rate is always 3.99% regardless of income.
What is the North Carolina standard deduction?
For a single filer, the standard deduction is $12,750, meaning the first $12,750 of income is not subject to the 3.99% tax; married couples filing jointly receive a larger combined amount. The deduction is built into the Form D-400 calculation and replaces the need to itemize for most filers. Because it shields a flat dollar amount rather than a percentage, it lowers the effective rate most for lower earners.
Does North Carolina tax retirement income or capital gains?
Most retirement income, including 401(k) and IRA distributions and pensions, is taxed at the same flat 3.99% as wages, though certain government and military pensions can qualify for exclusions under the Bailey settlement. Capital gains and other investment income are also taxed as ordinary income at 3.99%, since North Carolina has no separate preferential rate for them. Social Security benefits, by contrast, are not taxed by the state.

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