North Carolina tax burden — broken down.
North Carolina’s combined tax burden (income + property + sales) lands at 9.80% on our composite — ranking #35 of 51 jurisdictions. The top marginal individual income tax rate is 4.25%.
North Carolina burden, broken into 3 components
| Component | North Carolina rate | National median |
|---|---|---|
| Top marginal income | 4.25% | ~5.30% |
| Effective property | 0.80% | ~1.07% |
| State sales tax | 4.75% | ~5.50% |
| Combined composite | 9.80% | ~11.87% |
National medians from CalcFi’s 51-state composite. Top marginal is the headline single-filer rate, NOT the effective rate most households actually pay.
Retirement + Social Security in North Carolina
North Carolina taxes most retirement income (pensions, IRA / 401(k) distributions). Social Security benefits are NOT taxed by North Carolina. Federal taxation of these income sources is unchanged regardless of state.
How North Carolina compares
Of all 51 US jurisdictions ranked by combined burden composite, North Carolina sits at #35. That places North Carolina in the middle of the pack — burden is moderate without being a particular outlier in either direction. For the live cross-state heat map, see the interactive tax burden map.
North Carolina metros — local tax overlay
State rates are uniform across North Carolina— but local income, property, and sales taxes vary. Click any metro to run the full income tax calculator pre-populated with that city’s local layer.
- Charlotteproperty 0.79% · pop 2.8Mmedian $68,600 →
- Raleighproperty 0.79% · pop 1.5Mmedian $75,200 →
- Durhamproperty 0.79% · pop 0.3Mmedian $66,800 →
- Greensboroproperty 0.79% · pop 0.8Mmedian $55,800 →
- Winston-Salemproperty 0.79% · pop 0.7Mmedian $52,600 →
- Fayettevilleproperty 0.79% · pop 0.5Mmedian $49,800 →
- Ashevilleproperty 0.60% · pop 0.5Mmedian $55,200 →
- High Pointproperty 0.80% · pop 0.1Mmedian $46,800 →
- Wilmingtonproperty 0.70% · pop 0.3Mmedian $52,800 →
More North Carolina metros coming as we expand city coverage.
North Carolina tax — common questions
What is the North Carolina top marginal income tax rate in 2025?
North Carolina's top marginal individual income tax rate is 4.25% on the highest bracket.
What is the North Carolina effective property tax rate?
North Carolina's statewide effective property tax rate is 0.80% of home value (annual). On a $400,000 home that's roughly $3,200/yr. Local variation can be ±0.5pp.
Does North Carolina tax retirement income or Social Security?
North Carolina taxes most retirement income, and does NOT tax Social Security benefits.
Are there any North Carolina-specific tax quirks I should know about?
NC eliminated its estate tax in 2013 and has no inheritance tax; combined with the falling flat income rate, NC is increasingly competitive for retirees vs SC/VA.
For the full North Carolina state tax breakdown — every bracket, every deduction, all the edge cases — read our deep North Carolina state tax guide →
Reviewed by CalcFi Editorial · Source: Tax Foundation State Individual Income Tax Rates (Jan 2025). Last verified 2026-04-19. Methodology at /about/editorial.