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State Tax Guide 2026
North Carolina Income Tax
North Carolina has been cutting its flat income tax rate every year. For 2026, the rate is 3.99%(down from 4.5% in 2024 and 4.25% in 2025). NC has transformed from a progressive state into one of the most competitive flat-tax states in the Southeast.
3.99%
2026 Rate
Flat
Tax Type
4.75%+
Sales Tax
0.77%
Property Tax Avg
📉 North Carolina Rate Reduction Timeline
4.75%
2023
4.5%
2024
4.25%
2025
3.99%
2026
NC legislation mandated automatic annual rate cuts. The 3.99% rate applies to tax year 2026.
🔢 Free North Carolina Tax Calculators
North Carolina Income Tax Calculator
Calculate your exact NC 4.5% flat tax.
North Carolina Paycheck Calculator
Net pay after NC state and federal withholdings.
North Carolina Take-Home Pay Calculator
Annual take-home for NC residents.
North Carolina Self-Employment Tax Calculator
SE tax with NC flat rate on net earnings.
North Carolina Property Tax Calculator
Estimate NC property tax by county.
2026 NC Income Tax — Flat Rate Applied
| Gross Income | NC Standard Deduction | NC Tax at 3.99% |
|---|---|---|
| $40,000 | $10,750 | $1,165 |
| $75,000 | $10,750 | $2,556 |
| $100,000 | $10,750 | $3,556 |
| $200,000 | $10,750 | $7,546 |
North Carolina Standard Deduction 2026
$10,750
Single
$21,500
Married Filing Jointly
$16,125
Head of Household
North Carolina Sales Tax
NC state sales tax is 4.75%. Counties add 2%–2.5%, bringing the typical combined rate to 6.75%–7.5%.
Charlotte (Mecklenburg)
7.25%
Raleigh (Wake)
7.25%
Durham County
7.5%
Key North Carolina Tax Notes
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Social Security Exempt
NC does not tax Social Security benefits.
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Retirement Income Taxed
Most retirement income (pensions, IRA, 401k withdrawals) is subject to NC income tax, though some military and government pension income has exemptions.
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Child Deduction
$500 per qualifying child deduction (NC-specific).
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No Local Income Tax
Unlike Ohio and PA, North Carolina has no local municipal income taxes.
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Property Tax
NC average ~0.77% — one of the lower rates in the Southeast. Counties set their own rates.
Calculate Your NC Tax for 2026
3.99% flat rate — see your exact North Carolina income tax now.
Open NC Income Tax Calculator →