Income Tax for North Carolina (2026)
North Carolina (NC) Key Facts
Top Marginal Rate
4.5%
Tax Structure
Flat rate
Filing Deadline
April 15
Has State Income Tax
Yes
Number of Brackets
1
How This Calculator Works in North Carolina
This calculator applies North Carolina's 2026 tax brackets and rates to estimate your state income tax liability. Enter your income and filing status to see your marginal rate, effective rate, and estimated tax owed.
North Carolina Overview
North Carolina levies a flat income tax at 4.5% (2024), down from 5.75% in 2015 and still declining toward a scheduled 3.99% by 2026. The state eliminated itemized deductions in its 2013 tax reform, requiring all filers to use the standard deduction. North Carolina's steady rate reductions reflect a competitive strategy to attract businesses and residents from higher-tax Northeastern states, and the approach has made the Research Triangle and Charlotte major migration destinations.
How North Carolina Compares
North Carolina's top income tax rate of 4.5% compares to South Carolina at 6.4% and Virginia at 5.75%. The rate differences can meaningfully impact take-home pay for workers near state borders.
| State | Top Rate | Notes |
|---|---|---|
| South Carolina | 6.4% | South Carolina has an income tax rate of 6.4%. |
| Virginia | 5.75% | Virginia has an income tax rate of 5.75%. |
| Tennessee | 0% | Tennessee has an income tax rate of 0%. |
North Carolina's income tax 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 has a flat income tax rate of 4.5% (2024), reduced from 5.25% in 2021, with scheduled reductions bringing it to 3.99% by 2026.
- 2The state has been on a multi-year path of rate reductions — from 5.75% in 2015 to a planned 3.99%, making it one of the most competitive income tax rates in the Southeast.
- 3North Carolina does not tax Social Security benefits, but other retirement income (pensions, 401(k), IRA) is fully taxable.
- 4The state does not allow itemized deductions on the state return — all filers use the North Carolina standard deduction ($12,750 single / $25,500 married filing jointly).
- 5North Carolina's combination of low income tax, moderate property taxes (~0.80%), and a reasonable cost of living has made it one of the top states for domestic migration.