North Carolina uses a flat state income tax rate on North Carolina taxable income. That makes the state tax table simpler than a multi-bracket progressive system, but your actual paycheck still depends on federal income tax, Social Security, Medicare, deductions, benefits, credits, and withholding choices.
This page brings the North Carolina income tax picture together in one place: the state tax rate, North Carolina deductions and adjustments, local income tax treatment, and the combined federal, state, and FICA rate you actually face on your income.
Every table below is generated from current tax data, so the figures stay accurate year to year, and they match the numbers used by our payroll and income tax calculators.
North Carolina state income tax brackets
North Carolina uses a flat income tax for 2026: every filer pays 3.99% of North Carolina taxable income, regardless of income level or filing status.
The rate applies to North Carolina taxable income — income after the state's own deductions and exemptions, not your gross salary.
North Carolina uses a flat income tax structure rather than a multi-bracket progressive system. The table above shows the current North Carolina state income tax rate for each filing status. Even with a flat state rate, your combined tax rate can still change as income increases because the federal income tax system is progressive and FICA has its own wage limits and surtax rules.
North Carolina deductions and adjustments
| Filing Status | Standard Deduction | Personal Exemption |
|---|---|---|
| Single | $12,750 | $0 |
| Married Filing Jointly | $25,500 | $0 |
| Married Filing Separately | $12,750 | $0 |
| Head of Household | $19,125 | $0 |
These amounts are subtracted from income before North Carolina's tax rates apply. They are separate from — and in addition to — the federal standard deduction.
North Carolina taxable income does not always match federal taxable income. The state has its own deductions, additions, subtractions, credits, and retirement-income rules that can change how much income is subject to North Carolina tax. The table above shows the North Carolina deduction and adjustment rules stored in the PaycheckNet database.
North Carolina local income taxes
North Carolina does not generally have a broad local wage income tax system like New York City or many Ohio municipalities. Local sales, property, or other taxes may still apply separately. If the PaycheckNet database contains North Carolina locality-specific income tax entries, they will appear in the table above.
What you actually pay in North Carolina
| Gross Income | Federal | North Carolina | FICA | Combined |
|---|---|---|---|---|
| Up to $12,750 | -7.65% | 0% | 7.65% | 0% |
| $12,750 – $16,100 | 7.65% | 3.99% | 7.65% | 19.29% |
| $16,100 – $28,500 | 10% | 3.99% | 7.65% | 21.64% |
| $28,500 – $66,500 | 12% | 3.99% | 7.65% | 23.64% |
| $66,500 – $121,800 | 22% | 3.99% | 7.65% | 33.64% |
| $121,800 – $184,500 | 24% | 3.99% | 7.65% | 35.64% |
| $184,500 – $200,000 | 24% | 3.99% | 1.45% | 29.44% |
| $200,000 – $217,875 | 24% | 3.99% | 2.35% | 30.34% |
| $217,875 – $272,325 | 32% | 3.99% | 2.35% | 38.34% |
| $272,325 – $656,700 | 35% | 3.99% | 2.35% | 41.34% |
| Over $656,700 | 37% | 3.99% | 2.35% | 43.34% |
Marginal rate = the tax on your NEXT dollar of gross income. Because the federal government and North Carolina each subtract their own deductions before applying brackets, the ranges here are expressed in gross income — the two bracket tables cannot simply be added together.
FICA is the employee share of Social Security and Medicare. It applies from the first dollar, stops on wages above the Social Security cap, and rises again where the Additional Medicare surtax begins.
| Gross Income | Federal Tax | North Carolina Tax | FICA | Total Tax | Take-Home Pay | Effective Rate |
|---|---|---|---|---|---|---|
| $30,000 | $1,420 | $688 | $2,295 | $4,403 | $25,597 | 14.7% |
| $50,000 | $3,820 | $1,486 | $3,825 | $9,131 | $40,869 | 18.3% |
| $75,000 | $7,670 | $2,484 | $5,738 | $15,891 | $59,109 | 21.2% |
| $100,000 | $13,170 | $3,481 | $7,650 | $24,301 | $75,699 | 24.3% |
| $150,000 | $24,734 | $5,476 | $11,475 | $41,685 | $108,315 | 27.8% |
| $200,000 | $36,734 | $7,471 | $14,339 | $58,544 | $141,456 | 29.3% |
| $300,000 | $68,134 | $11,461 | $16,689 | $96,285 | $203,715 | 32.1% |
| $500,000 | $138,134 | $19,441 | $21,389 | $178,965 | $321,035 | 35.8% |
Effective rate = total tax as a share of gross income. It is always lower than your top marginal rate, because only the last slice of income is taxed at the highest bracket.
The combined table shows what a North Carolina resident really pays on their next dollar once federal tax, North Carolina state tax, and FICA are stacked together.
Social Security and Medicare
| Employee Rate | Wage Limit | |
|---|---|---|
| Social Security | 6.2% | First $184,500 of wages |
| Medicare | 1.45% | All wages (no cap) |
| Additional Medicare | 0.9% | Wages above $200,000 (single / head of household), $250,000 (married filing jointly), $125,000 (married filing separately) |
FICA comes out of every paycheck in every state and is separate from income tax. Employers pay a matching share on top of these employee rates; self-employed workers pay both halves through self-employment tax.
FICA applies the same way in North Carolina as it does across the rest of the country.
Work out your North Carolina take-home pay
To turn these tables into a practical paycheck estimate, use the payroll calculator and select North Carolina as your state. To compare North Carolina against another state, use the tax comparison calculator.
Frequently asked questions
Is North Carolina income tax flat or progressive?
North Carolina uses a flat state income tax rate rather than a multi-bracket progressive state income tax.
Does North Carolina have local income tax?
North Carolina does not generally have a broad local wage income tax system. Local sales, property, or other taxes may still apply separately.
Do North Carolina workers still pay Social Security and Medicare?
Yes. North Carolina workers still pay FICA taxes, which include Social Security and Medicare.