North Carolina Income Tax Rates, Tables, and Calculator for 2026
North Carolina has one flat income tax rate of 3.99% for 2026. Compare NC state tax at $75,000, $100,000, and other income levels. See how filing status changes the results and where North Carolina ranks among states.
North Carolina has a flat individual income tax rate of 3.99% for 2026. The same rate applies to North Carolina taxable income for Single, Married Filing Jointly, Married Filing Separately, and Head of Household statuses. The state standard deduction reduces taxable income, which keeps the effective tax rate below the flat rate in our wage examples. The calculator and tables below compare North Carolina taxes across income levels, filing statuses, and states, with step-by-step examples showing how the state standard deduction and flat rate determine state income tax.
The North Carolina General Assembly establishes the income tax rules, while the North Carolina Department of Revenue administers them and publishes the tax forms and instructions. The Department's 2026 NC-40 estimated-tax worksheet provides the rate and standard deduction amounts we use in our calculations. The rate fell from 4.25% in 2025 to 3.99% in 2026, while the standard deduction remains $12,750 for Single and $25,500 for Married Filing Jointly. For calendar-year filers, federal Form 1040 series returns and North Carolina Form D-400 tax returns for income earned in 2026 are generally due April 15, 2027.
Tax Calculator
North Carolina Income Tax Calculator for 2026
Enter annual household income and select a filing status to estimate North Carolina income tax for 2026. Results open in our All 50 States income tax calculator with North Carolina highlighted. The examples below provide a starting point, showing North Carolina income tax for a Single filer earning $50,000 to $150,000 annually. The marginal tax rate stays at 3.99%, while the effective tax rate rises as the fixed standard deduction covers a smaller share of income. North Carolina's rank changes because other states' rates, deductions, and credits affect tax differently as income increases.
How Much Will You Pay in North Carolina?
| Household Income | State Tax | Marginal Rate | Effective Rate | State Rank |
|---|---|---|---|---|
| $50,000 | $1,486 | 3.99% | 2.97% | 27 |
| $75,000 | $2,484 | 3.99% | 3.31% | 22 |
| $100,000 | $3,481 | 3.99% | 3.48% | 20 |
| $125,000 | $4,479 | 3.99% | 3.58% | 21 |
| $150,000 | $5,476 | 3.99% | 3.65% | 20 |
North Carolina falls in the moderate income tax range nationally across these examples, with rankings from 20th to 27th. At $100,000 of annual income, a Single filer pays an estimated $3,481 in North Carolina state income tax for 2026. The marginal tax rate is 3.99%, while the effective rate is lower at 3.48%. The $12,750 state standard deduction explains the difference by reducing taxable income to $87,250.
The ranked estimates assume full-year North Carolina residency, Single filing status, wages only, no dependents, and a taxpayer under age 65 who is not blind or claimed as another taxpayer's dependent. They include the $12,750 North Carolina standard deduction. No other deductions, income adjustments, or tax credits are included. Federal, payroll, and local taxes are excluded. The step-by-step examples further down the page explain how North Carolina income tax is calculated for Single and Married Filing Jointly households.
Tax Rates
North Carolina Income Tax Rates
North Carolina is a flat tax state with one statutory individual income tax rate of 3.99% for 2026. The same rate applies to North Carolina taxable income for Single, Married Filing Jointly, Married Filing Separately, and Head of Household statuses. Earning more does not move a taxpayer into a higher state income tax bracket. The table shows North Carolina's transition from progressive brackets to a flat rate and the reductions that followed.
North Carolina State Income Tax Bracket and Rate History, 2013-2026
| Tax Year | Tax Brackets | Tax Rate |
|---|---|---|
| 2026 | 1 | 3.99% |
| 2025 | 1 | 4.25% |
| 2024 | 1 | 4.5% |
| 2023 | 1 | 4.75% |
| 2022 | 1 | 4.99% |
| 2019-2021 | 1 | 5.25% |
| 2017-2018 | 1 | 5.499% |
| 2015-2016 | 1 | 5.75% |
| 2014 | 1 | 5.8% |
| 2013 | 3 | 6% - 7.75% |
North Carolina replaced its three progressive income tax brackets with a flat rate in 2014 under Session Law 2013-316. The change lowered the top rate from 7.75% to a single 5.8% rate. Subsequent legislation reduced the flat rate in stages, reaching 3.99% for 2026. These changes came from legislation rather than annual adjustments to bracket thresholds.
The flat rate applies after the state standard deduction or allowable itemized deductions and other North Carolina adjustments. Our wage examples use the $12,750 Single standard deduction or $25,500 joint standard deduction, which reduce the effective tax rate below 3.99%. Session Law 2026-41 keeps the 2026 rate unchanged and sets a 3.49% rate for 2027 through 2029. See the North Carolina income tax rate reductions FAQ for the later scheduled changes.
Compare States
Compare North Carolina to Other States
The next table compares North Carolina with its four neighboring states, plus Kentucky, Pennsylvania, and West Virginia, at $75,000 of annual income for a Single filer. The calculations use the same household assumptions and apply each state's deductions, exemptions, and credits. States appear from lowest to highest state income tax, with the difference measured against North Carolina. The marginal rate identifies the tax bracket reached, while the effective rate is state income tax divided by $75,000 of household income, expressed as a percentage.
North Carolina vs Other States at $75,000 of Income (2026)
| State Name | State Tax | Difference | Marginal Rate | Effective Rate | State Rank |
|---|---|---|---|---|---|
| Tennessee | $0 | −$2,484 | 0% | 0.00% | 1 |
| Pennsylvania | $2,303 | −$181 | 3.07% | 3.07% | 19 |
| North Carolina | $2,484 | $0 | 3.99% | 3.31% | 22 |
| Kentucky | $2,507 | +$24 | 3.5% | 3.34% | 23 |
| West Virginia | $2,546 | +$62 | 4.58% | 3.39% | 26 |
| South Carolina | $2,657 | +$173 | 5.21% | 3.54% | 29 |
| Georgia | $2,994 | +$510 | 4.99% | 3.99% | 36 |
| Virginia | $3,498 | +$1,015 | 5.75% | 4.66% | 45 |
At $75,000 of annual income for a Single filer, North Carolina has lower state income tax than three of its four neighboring states. Its estimated $2,484 tax is about $173 less than South Carolina, $510 less than Georgia, and $1,015 less than Virginia. Among the other states shown, Pennsylvania is about $181 lower than North Carolina, Kentucky is $24 higher, and West Virginia is $62 higher. Tennessee has no individual income tax.
Examples
North Carolina Income Tax Calculation Examples
The goal of these examples is to compare Single and Married Filing Jointly statuses at the same $75,000 annual income per person. The Single example uses $75,000 of household income, while the Married Filing Jointly example assumes each spouse earns $75,000, for a combined $150,000. The results match our 2026 income tax calculator using $75,000 or $150,000 and the corresponding filing status.
To simplify the calculations, both examples assume full-year North Carolina residency, W-2 wages only, no dependents, and taxpayers under age 65 who are not blind or claimed as dependents. In the comparison table, we subtract the North Carolina standard deduction from household income to calculate taxable income. We then apply the 3.99% flat rate to calculate North Carolina state income tax. No other deductions, North Carolina additions or subtractions, or tax credits are included.
2026 North Carolina Filing Status Comparison
| Tax Metric | Single | Married Filing Jointly |
|---|---|---|
| Household Income | $75,000 | $150,000 |
| Standard Deduction | $12,750 | $25,500 |
| Taxable Income | $62,250 | $124,500 |
| State Income Tax | $2,484 | $4,968 |
| Effective Tax Rate | 3.31% | 3.31% |
| Marginal Tax Rate | 3.99% | 3.99% |
Looking at the table above, we can see that the same 3.99% tax rate applies to both Single and Married Filing Jointly statuses. The North Carolina standard deduction doubles for Married Filing Jointly, matching the doubling of household income. Taxable income and estimated state income tax also double, leaving both examples with the same 3.31% effective tax rate. Before rounding, the joint tax equals the combined tax of two single filers who each earn $75,000. Filing jointly therefore produces no North Carolina marriage penalty in this simplified comparison. Next, we will review the step-by-step calculations for each filing status.
Step-by-Step Example 1: Single
For a single filer with $75,000 of household income, the 2026 North Carolina standard deduction is $12,750. With wages only and no other adjustments, subtracting this deduction leaves $62,250 of North Carolina taxable income.
- Taxable income: Subtract the North Carolina standard deduction from household income. $75,000 − $12,750 = $62,250
- Estimated North Carolina income tax: Multiply taxable income by the flat tax rate of 3.99% and round to cents. $62,250 × 0.0399 = $2,483.78
To calculate the North Carolina effective tax rate, we divide $2,483.78 of state income tax by $75,000 of household income. The result is 3.31%, rounded. The estimated state income tax rounds to $2,484 in the comparison table.
The North Carolina marginal tax rate is 3.99%, the rate applied to each additional dollar of North Carolina taxable income in this example.
Step-by-Step Example 2: Married Filing Jointly
Now let's apply the same calculation to a married couple filing jointly. Each spouse earns $75,000 with a combined household income of $150,000. The 2026 North Carolina standard deduction for Married Filing Jointly is $25,500. Subtracting this deduction leaves $124,500 of North Carolina taxable income.
- Taxable income: Subtract the joint North Carolina standard deduction from household income. $150,000 − $25,500 = $124,500
- Estimated North Carolina income tax: Multiply taxable income by the same flat tax rate of 3.99%. $124,500 × 0.0399 = $4,967.55
To calculate the North Carolina effective tax rate, we divide $4,967.55 of state income tax by $150,000 of household income. The result is 3.31%, rounded. The estimated state income tax rounds to $4,968 in the comparison table.
The North Carolina marginal tax rate is 3.99%, unchanged from the Single example.
Takeaway
North Carolina Income Tax Takeaways
Standard deduction reduces taxable income
North Carolina's 3.99% rate does not apply to the entire paycheck in these examples. The North Carolina standard deduction reduces the income subject to state tax. The federal standard deduction is not subtracted in the North Carolina calculation.
Joint filing produces equal results
In our examples at $75,000 of annual income per person, the joint household has twice the income, standard deduction, and taxable income. Before rounding, the joint tax is exactly twice the Single tax. This simplified comparison shows no North Carolina marriage penalty.
Effective rates are below the flat rate
In our examples, estimated North Carolina income tax divided by household income produces a 3.31% effective rate for both filing statuses. Both also have a 3.99% marginal rate. Results can differ when other deductions, state adjustments, or credits apply.
North Carolina tax is lower than most neighbors
At $75,000 of Single income, North Carolina's estimated $2,484 state income tax is lower than Georgia, South Carolina, and Virginia, while Tennessee has no individual income tax. The savings range from about $173 compared with South Carolina to $1,015 compared with Virginia. Nationally, North Carolina ranks 22nd at that income level, in the moderate income tax range.
FAQ
Frequently Asked Questions
Is North Carolina a flat tax state?
Yes. North Carolina has a flat individual income tax rate of 3.99% for 2026. The same rate applies to North Carolina taxable income regardless of filing status. Deductions and state adjustments can reduce taxable income, so the flat rate generally does not apply to the entire paycheck.
What is the North Carolina income tax rate for 2026?
The North Carolina individual income tax rate is 3.99% for the 2026 tax year, down from 4.25% for 2025. The rate applies to taxable income earned during the full 2026 calendar year. North Carolina's 2026 estimated income tax worksheet uses the same 3.99% rate.
Will North Carolina's income tax rate decrease in 2027?
Yes. Session Law 2026-41 sets North Carolina's individual income tax rate at 3.49% for 2027, down from 3.99% for 2026. The law establishes the following rate schedule:
- 2026: 3.99%.
- 2027 through 2029: 3.49%.
- 2030 through 2032: 3.24%.
- 2033 and after: 2.99%, before any later revenue-triggered reductions.
These scheduled rates replace the earlier revenue-trigger rules for 2027 through 2034. Beginning in 2035, further reductions depend on state revenue conditions and could eventually lower the rate to 2.49%.
How much is North Carolina income tax on $75,000?
For 2026, a Single filer earning $75,000 in wages pays an estimated $2,484 in North Carolina state income tax. The $12,750 state standard deduction leaves $62,250 of taxable income, taxed at 3.99%. The effective tax rate is 3.31% of household income.
How much is North Carolina income tax on $100,000?
For 2026, a Single filer earning $100,000 in wages pays an estimated $3,481 in North Carolina state income tax. The $12,750 state standard deduction leaves $87,250 of taxable income, taxed at 3.99%. The effective tax rate is 3.48% of household income.
What is the North Carolina marginal tax rate?
The North Carolina statutory marginal income tax rate is 3.99% for 2026. Each additional dollar of North Carolina taxable income is taxed at 3.99% before credits. Both Single and Married Filing Jointly use the same marginal rate.
What is the North Carolina effective tax rate?
The North Carolina effective income tax rate is state income tax divided by household income. Our 2026 examples produce a 3.31% effective rate for Single at $75,000 and Married Filing Jointly at $150,000. Both are below the 3.99% marginal rate because the state standard deduction reduces taxable income.
How much is the North Carolina standard deduction for 2026?
For 2026, North Carolina's standard deduction is $12,750 for Single and Married Filing Separately, $25,500 for Married Filing Jointly, and $19,125 for Head of Household. North Carolina uses its own state deduction amounts, which differ from the federal standard deduction. These amounts are set by state law and are not automatically adjusted for inflation. A married taxpayer filing separately cannot claim the standard deduction if the other spouse itemizes. There is no additional state standard deduction for age or blindness.
Does North Carolina have a personal exemption?
No. North Carolina does not provide a separate personal exemption for the taxpayer or spouse for 2026. Instead, taxpayers may reduce taxable income through the North Carolina standard deduction or eligible state itemized deductions. A separate child deduction is available to qualifying taxpayers.
How much is the North Carolina child deduction for 2026?
North Carolina allows a deduction of up to $3,000 per qualifying child for 2026 rather than a general dependent exemption. Eligibility depends on whether the taxpayer is allowed a federal Child Tax Credit for that child.
The amount depends on filing status and federal adjusted gross income. The deduction is unavailable above $70,000 for Single or Married Filing Separately, $105,000 for Head of Household, or $140,000 for Married Filing Jointly. This deduction reduces taxable income rather than subtracting the amount directly from tax owed.
Does North Carolina have a Child Tax Credit?
No. North Carolina does not offer a general state Child Tax Credit for 2026. It instead allows a child deduction of up to $3,000 per qualifying child, subject to income limits. The deduction reduces taxable income rather than tax owed dollar for dollar. Eligible taxpayers may still claim the federal Child Tax Credit on their federal income tax return.
Does North Carolina offer an Earned Income Tax Credit?
No. North Carolina does not offer a state Earned Income Tax Credit for 2026. Eligible workers may still claim the federal Earned Income Tax Credit on their federal income tax return.
Does North Carolina have a marriage penalty?
No, not in our simplified 2026 comparison. Each spouse earns $75,000, and the joint standard deduction is twice the Single deduction. Before rounding, the joint tax equals the combined tax of two single filers with the same income per person. Other deductions, credits, or household circumstances can change the result.
References:
- 2026 NC-40 Individual Estimated Income Tax Instructions and Worksheet (PDF). North Carolina Department of Revenue. Worksheet uses the 3.99% rate and $12,750/$25,500 standard deductions. Retrieved October 24, 2026.
- Tax Rate Schedules. North Carolina Department of Revenue. Confirms the 2026 rate and prior-year rate history. Its future-trigger description predates Session Law 2026-41. Retrieved October 24, 2026.
- 2014 Individual Income Tax Changes (PDF). North Carolina Department of Revenue. Documents the former three rates of 6%, 7%, and 7.75% and the transition to a single 5.8% rate in 2014. Supports the opening years of the historical table. Retrieved October 24, 2026.
- Session Law 2013-316: Tax Simplification and Reduction Act. North Carolina General Assembly. Replaced the progressive individual income tax brackets with a 5.8% flat rate for 2014 and scheduled the reduction to 5.75% for 2015. Retrieved October 24, 2026.
- Session Law 2026-41, Section 44.1: Personal Income Tax Modifications and G.S. 105-153.7. North Carolina General Assembly. The July 7, 2026 law leaves the 2026 rate at 3.99%, replaces the 2027-2034 trigger schedule with fixed rate reductions, and establishes later revenue triggers. The enacted amendment supersedes the older schedule shown in the compiled statute. Retrieved October 24, 2026.
- G.S. 105-151.31: Repealed Earned Income Tax Credit. North Carolina General Assembly. Records the repeal of the state Earned Income Tax Credit for tax years beginning on or after January 1, 2014. Retrieved October 24, 2026.
- G.S. 105-153.5: Modifications to Adjusted Gross Income. North Carolina General Assembly. Establishes state standard deductions and the income-based child deduction. Retrieved October 24, 2026.
- North Carolina Standard Deduction or North Carolina Itemized Deductions and North Carolina Child Deduction. North Carolina Department of Revenue. Explains deduction eligibility and filing-status rules. The child guidance is labeled 2025; the continuing statutory amounts also appear in G.S. 105-153.5. Retrieved October 24, 2026.
- 2025 D-401 Individual Income Tax Instructions (PDF). North Carolina Department of Revenue. Supports the federal AGI starting point, filing-status treatment, and general filing-deadline rules. The separately confirmed 2026 rate is used for this page's examples. Retrieved October 24, 2026.
- FAQs Regarding Recent Session Law Changes. North Carolina Department of Revenue, September 11, 2026. Question 14 explains why the federal overtime and tips deductions do not reduce North Carolina income. The FAQ discusses 2025 returns and confirms that no corresponding state deduction was enacted. The same AGI starting point applies to these 2026 examples. Retrieved October 24, 2026.
- Child Tax Credit and Earned Income Tax Credit (EITC). Internal Revenue Service. Supports the general qualifying-child age, relationship, support, residency, and dependent rules, and the separate availability of federal credits. The Child Tax Credit page is labeled for 2025 and is used for eligibility rules, not 2026 credit amounts. Retrieved October 24, 2026.