Capital Gains Tax for North Carolina (2026)
North Carolina (NC) Key Facts
State Capital Gains Rate
4.5%
Taxed As
Ordinary income
Federal Rate Applies
Yes (0%, 15%, or 20%)
Long Term vs Short Term
Both taxed at state level
How This Calculator Works in North Carolina
This calculator estimates your combined federal and North Carolina capital gains tax. Enter your gain amount, holding period, and income to see your estimated tax.
North Carolina Overview
North Carolina taxes capital gains as ordinary income at its flat 4.5% rate. Federal capital gains taxes also apply, with long-term rates of 0%, 15%, or 20% depending on income. The combined state and federal burden should be considered when planning asset sales or investment strategies.
How North Carolina Compares
North Carolina's capital gains rate of 4.5% compares to South Carolina at 6.4% and Virginia at 5.75%. State capital gains taxes significantly impact net investment returns.
| State | Top Rate | Notes |
|---|---|---|
| South Carolina | 6.4% | South Carolina has a capital gains rate of 6.4%. |
| Virginia | 5.75% | Virginia has a capital gains rate of 5.75%. |
| Tennessee | 0% | Tennessee has a capital gains rate of 0%. |
North Carolina's capital gains rate of 4.5% compares to a national average of approximately 5.04%. This is below the national average.
Tips for North Carolina Residents
- 1North Carolina taxes capital gains as ordinary income at its flat 4.5% rate.
- 2Federal long-term gains (held 1+ year) are taxed at 0%, 15%, or 20%. North Carolina's state tax applies on top of the federal rate.
- 3Hold investments over one year to qualify for lower federal long-term rates rather than ordinary income rates.
- 4Tax-loss harvesting—selling losing investments to offset gains—reduces both federal and North Carolina state capital gains tax.
- 5Consider the combined federal + state rate when planning large asset sales. The total can exceed 28.3% for high earners.