What is the North Carolina Income Tax Calculator?
In short
North Carolina taxes all taxable income at a flat 3.99% rate rather than progressive brackets, so a higher salary doesn't push you into a higher state rate. On a $75,000 salary, a single filer keeps about $59,109 after $7,670 federal, $2,484 North Carolina state tax and $5,738 FICA — a 21.2% effective rate.
This North Carolina income tax calculator estimates your total tax — federal brackets + FICA (7.65%) + North Carolina's flat 3.99% income tax. NCDOR's published rate history runs from 5.75% (2015–2016) through 5.499%, 5.25%, 4.99% (2022), 4.75%, 4.5% and 4.25% (2025) to 3.99% for tax years after 2025.
How to use this calculator
- 1Enter your annual gross income.
- 2Choose your filing status (single, married, or head of household).
- 3North Carolina is pre-selected — switch states to compare.
- 4Enter pre-tax deductions (401k, HSA) and any itemized deductions.
- 5Read your federal tax, state tax, FICA, total, and effective rate.
The formula
- AGI
- — Gross income minus pre-tax deductions
- taxable income
- — AGI minus the standard or itemized deduction
- federal tax
- — Federal income tax from progressive brackets
- NC tax
- — North Carolina — a flat 3.99% income tax (2026)
- FICA
- — Social Security 6.2% + Medicare 1.45%
Worked example
The scenario
A single filer in North Carolina earns $75,000 in wages, takes the state standard deduction and contributes nothing pre-tax. The same income is then run at the 2025 rate and at the rate that would apply in 2027 if the first revenue trigger is met.
The result
North Carolina taxable income is $75,000 − $12,750 = $62,250. At the 2026 rate of 3.99% the state tax is $2,484, which matches the calculator's $2,484. The same taxable income at the 2025 rate of 4.25% would have cost $2,646, so the scheduled cut is worth $162 a year at this salary. If fiscal year 2025-26 General Fund revenue exceeds $33,042,000,000, the 2027 rate becomes 3.49% and the bill falls to $2,173. That is a further $311, and it is not guaranteed. Federal tax and FICA do not depend on the state rate, so the take-home of $59,109 moves by exactly the state-tax difference.
Common use cases
- Estimating your total tax bill before filing in North Carolina
- Comparing North Carolina's flat 3.99% rate against progressive-bracket states
- Seeing how pre-tax 401(k)/HSA contributions lower your tax
- north Carolina taxable income starts from adjusted gross income, minus either the state standard deduction or the state itemized deduction
Limitations & assumptions
- The 3.99% rate is the statutory rate for tax years after 2025. A trigger-driven cut would first apply to tax year 2027, and this calculator does not model it until it is in force.
- North Carolina's state itemized deduction, its additions and subtractions to federal AGI, and its tax credits are not modelled; only the standard deduction is.
- Local/city income taxes aren't included; North Carolina applies its 3.99% rate statewide.
- Rates change: Session Law 2023-134 set 4.25% for 2025 and 3.99% for tax years after 2025. Any further cut, starting with tax year 2027, happens only if General Fund revenue clears a trigger written into G.S. 105-153.7(a1).
- Federal calculation uses current brackets and the standard deduction unless you itemize.
- This is an estimate, not tax advice — verify against your actual return.
Official sources
Official publications for rules and figures this page uses. Rates and rules change, so confirm the current figures with the publisher before you rely on them:
- North Carolina Department of Revenue (NCDOR) (ncdor.gov)
Frequently asked questions
What is the North Carolina state income tax rate?
How much is $75,000 taxed in North Carolina?
Does North Carolina have a standard deduction?
How much is $100,000 taxed in North Carolina?
Is North Carolina's income tax going down?
When could North Carolina's rate fall below 3.99%?
How low can North Carolina's income tax rate go?
Why is my North Carolina taxable income higher than my federal taxable income?
Disclaimer: KalkWise calculators are provided for general informational and educational purposes only and do not constitute financial, investment, tax, or legal advice. Results are estimates based on the figures you enter and the assumptions described above. Actual outcomes will vary. Consult a qualified professional before making financial decisions.