North Carolina variant. This is a North Carolina-specific version of the Income Tax Calculator, using pre-defined local figures (tax rates, median home and income values, and typical regional costs). For the full formula, methodology, and FAQ, open the main Income Tax Calculator.
North Carolina income tax (Flat 4.5% (decreasing to 3.99% by 2026)) stacks on top of federal tax. Understanding both layers is essential to estimating your total North Carolina tax bill.
North Carolina state income tax structure
North Carolina taxes income at Flat 4.5% (decreasing to 3.99% by 2026), with a top marginal rate of 4.5%. Like the federal system, only income within each bracket is taxed at that bracket's rate.
Federal brackets (10%–37%) apply nationwide. Combine your federal effective rate with the North Carolina rate to find your true marginal tax on the next dollar earned.
About taxes and housing in North Carolina
North Carolina uses a flat individual income tax rate that has been scheduled to decline over time toward roughly 3.99%.
North Carolina has a moderate effective property tax rate around 0.82%, with median home values near $320,000.
North Carolina's economy spans banking in Charlotte, technology and research in the Research Triangle, and manufacturing and agriculture statewide.
Worked example: state tax on $70,804
Using the 4.5% top rate as a ceiling, state income tax on $70,804 is at most about $3,186; the actual figure is lower after brackets and deductions.
Quick reference
- State income tax: Flat 4.5% (decreasing to 3.99% by 2026)
- State sales tax: 4.75% (plus 2.23% avg local)
- Median home value: $320,000
- Median household income: $70,804
- Effective property tax rate: 0.82%
- Avg auto insurance: $1,230/yr
Frequently Asked Questions
Does North Carolina have state income tax?
Yes - Flat 4.5% (decreasing to 3.99% by 2026), topping out at 4.5%.
What is the top tax rate in North Carolina?
The top marginal state rate is 4.5%.