Results are estimates for educational purposes only. Based on 2026 IRS federal brackets and North Carolina state tax rates. Always consult a qualified tax professional.
North Carolina income tax overview
North Carolina has a flat income tax rate of 4.5% in 2026, continuing a multi-year phase-down that began when the state converted from a progressive system. The rate is scheduled to continue declining toward 3.99% in future years. North Carolina's tax reforms have positioned it as one of the more competitive states in the Southeast for business and individual taxation. The state has a standard deduction of $10,750 for single filers in 2026. North Carolina does tax Social Security benefits but offers a deduction for retirement income for qualifying individuals. The Research Triangle area — home to major universities and technology companies — has driven significant population growth.
2026 North Carolina income tax rates
Tax rate
Income range (single filer)
4.5% flat
All taxable income (2026)
Worked example: $75,000 salary in North Carolina
A $75,000 salary in North Carolina results in approximately $2,901 in state income tax (4.5% after standard deduction), plus $12,580 federal tax, $4,650 Social Security, and $1,088 Medicare. Annual take-home is approximately $53,781, or $2,068 bi-weekly.
Key facts: 4.5% flat rate · Declining toward 3.99% · Social Security is taxable
Frequently asked questions — North Carolina income tax
Yes. North Carolina's flat tax rate has been decreasing from 5.25% in prior years to 4.5% in 2026, with further reductions scheduled depending on revenue conditions. The target rate is 3.99%.
North Carolina does tax Social Security benefits, which is less favorable than many neighboring states. However, there is a $5,000 deduction available on pension and retirement income for qualifying recipients.
North Carolina's standard deduction for 2026 is $10,750 for single filers and $21,500 for married filing jointly. These are more generous than Georgia's but still lower than the federal $15,000 standard deduction.
No. North Carolina does not allow cities or counties to levy local income taxes. The flat state rate is the only income tax beyond federal.
At 4.5%, NC is lower than Virginia (5.75%) and South Carolina (top 6.4%), comparable to Georgia (5.49%), and higher than Tennessee (0%) and Florida (0%). NC's declining rate trend makes it increasingly competitive in the Southeast.
Compare North Carolina to other states
Use our US income tax calculator to compare your take-home pay across all 50 states. You may be surprised how much location affects your net income.