North Carolina After Tax Income Calculator 2026
Calculate Your NC Take-Home Pay — Low Flat Tax Rate!
Based on NC Dept. of Revenue & IRS 2026 rates
Enter Your Income Information
Your 2026 North Carolina Paycheck Breakdown
Paycheck Distribution
How North Carolina Income Tax Works
🌲 North Carolina's Competitive Flat Tax
North Carolina has one of the lowest flat income tax rates in the nation at just 4.5% for 2026. NC converted from progressive brackets to a flat tax in 2014 and has been reducing the rate annually. There are no local income taxes anywhere in the state — Charlotte, Raleigh, Durham, and all other cities have the same simple state-only tax structure.
- Calculate Gross Income: Start with your total annual salary before any deductions.
- Subtract Pre-Tax Deductions: 401(k), health insurance, HSA, and FSA contributions reduce taxable income.
- Apply Federal Tax Brackets: Calculate federal income tax using 2026 IRS tax brackets (10%-37%).
- Apply NC Standard Deduction: North Carolina has its own standard deduction amounts.
- Apply NC Flat Tax: North Carolina charges a flat 4.5% on taxable income for 2026.
- No Local Tax: North Carolina has no local or city income taxes!
- Calculate FICA: Social Security (6.2% up to $176,100) + Medicare (1.45%, plus 0.9% over $200K).
- Calculate Take-Home: Gross minus all taxes equals your North Carolina net pay.
North Carolina Tax Calculation Formulas
Take-Home Pay Formula
NC State Tax (Flat Rate)
NC Standard Deduction
Effective Tax Rate
North Carolina Tax Rate History
| Tax Year | Flat Rate | Notes |
|---|---|---|
| 2014 | 5.8% | First year of flat tax |
| 2019 | 5.25% | Gradual reduction |
| 2022 | 4.99% | Further cut |
| 2024 | 4.75% | Continued reduction |
| 2025 | 4.6% | Projected rate |
| 2026 | 4.5% | Current calculator rate |
| 2027+ | 3.99% | Target rate (subject to triggers) |
2026 North Carolina Standard Deductions
| Filing Status | NC Standard Deduction |
|---|---|
| Single | $12,750 |
| Married Filing Jointly | $25,500 |
| Married Filing Separately | $12,750 |
| Head of Household | $19,125 |
2026 Federal Tax Brackets
| Rate | Single | Married Filing Jointly |
|---|---|---|
| 10% | $0 - $11,925 | $0 - $23,850 |
| 12% | $11,925 - $48,475 | $23,850 - $96,950 |
| 22% | $48,475 - $103,350 | $96,950 - $206,700 |
| 24% | $103,350 - $197,300 | $206,700 - $394,600 |
| 32% | $197,300 - $250,525 | $394,600 - $501,050 |
| 35% | $250,525 - $626,350 | $501,050 - $751,600 |
| 37% | Over $626,350 | Over $751,600 |
North Carolina vs Neighboring States
| State | Top Income Tax | Local Tax? | $100K Tax |
|---|---|---|---|
| North Carolina | 4.5% (flat) | No | ~$3,936 |
| South Carolina | 6.4% | No | ~$4,800 |
| Virginia | 5.75% | No | ~$4,800 |
| Tennessee | 0% | No | $0 |
| Georgia | 5.39% (flat) | No | ~$4,748 |
NC Tax Advantages & Considerations
✅ Advantages
- Low flat 4.5% state tax rate
- Rate decreasing toward 3.99%
- No local income tax anywhere
- Generous standard deduction
- Social Security fully exempt
- Growing tech/banking job market
⚠️ Considerations
- Higher than TN (0%) and FL (0%)
- 4.75% state sales tax + local (up to 7.5%)
- Property taxes vary by county
- Retirement income taxable (unlike some states)
- 401(k)/IRA distributions are taxable
Official Resources
Frequently Asked Questions
North Carolina has a flat 4.5% income tax rate for 2026. This applies to all taxable income after the standard deduction. NC has been reducing its rate annually since adopting the flat tax in 2014, with plans to reach 3.99% by 2027 if revenue triggers are met.
No! North Carolina has no local or city income taxes anywhere in the state. Whether you live in Charlotte, Raleigh, Durham, Asheville, or rural areas, you only pay state and federal income taxes. This simplifies tax filing significantly.
North Carolina has its own standard deduction: $12,750 for single filers, $25,500 for married filing jointly, and $19,125 for head of household. These are applied before calculating the 4.5% flat tax.
No! North Carolina does not tax Social Security benefits at the state level. However, other retirement income like 401(k) distributions, IRA withdrawals, and pension income is taxable. This differs from states like Pennsylvania that exempt all retirement income.
NC's 4.5% flat rate is lower than SC's top rate of 6.4%. At $100K income: NC ≈ $3,936 vs SC ≈ $4,800. However, SC offers better retirement income treatment and lower property taxes in some areas. Many retirees choose SC; working professionals often prefer NC.
Yes! North Carolina follows federal treatment for 401(k), 403(b), and traditional IRA contributions. Pre-tax contributions reduce your NC taxable income, saving you 4.5% in state taxes on those contributions.
North Carolina has a 4.75% state sales tax plus local additions (typically 2-2.75%). Combined rates range from 6.75% to 7.5% depending on the county. Groceries are taxed at a reduced 2% state rate. Prescription drugs are exempt.
File federal Form 1040, then North Carolina Form D-400 (Individual Income Tax Return). You can e-file free through NC E-Services. NC also participates in IRS Free File and accepts most commercial tax software.
NC state taxes are due April 15th, same as federal. Extensions to file are available until October 15th, but estimated taxes are still due by April 15th. Estimated payments are due quarterly: April 15, June 15, September 15, and January 15.
Excellent! NC's low 4.5% flat tax, no local income tax, affordable cost of living (especially outside Charlotte/Raleigh), and growing metro areas make it attractive for remote workers. The Research Triangle has a strong tech scene, and the state has invested in broadband infrastructure.
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Last Updated: January 2025 | Projected 2026 Tax Rates