Overview of North Carolina Taxes: North Carolina has a flat state income tax rate of 4.25%. The effective property tax rate for the state is below the national average. There is a statewide sales tax and each county levies an additional tax.
Your 2025 Estimated State Income Tax:
Breakdown of Your Income Taxes
Your Annual Take-Home Pay
About This Calculator
Our income tax calculator calculates your federal, state and local taxes based on several key inputs: your household income, location, filing status and number of personal exemptions.
How Income Taxes Are Calculated
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First, we calculate your adjusted gross income (AGI) by taking your total household income and reducing it by certain items such as contributions to your 401(k).
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Next, from AGI we subtract exemptions and deductions (either itemized or standard) to get your taxable income. Exemptions can be claimed for each taxpayer.
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Based on your filing status, your taxable income is then applied to the tax brackets to calculate your federal income taxes owed for the year.
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Your location will determine whether you owe local and / or state taxes.
When Do We Update? - We check for any updates to the latest tax rates and regulations annually.
Customer Service - If you would like to leave any feedback, feel free to email info@smartasset.com.
Assumptions
Deductions
- "Other Pre-Tax Deductions" are not used to calculate state taxable income.
Credits
- The only federal credit automatically calculated is the Savers Credit, depending on your eligibility.
- We do not apply any refundable credits, like the Child Tax Credit or Earned Income Tax Credit (EITC).
- We do not apply state credits in our calculations.
Itemized Deductions
- If itemizing at the federal level, you may need to itemize at the state level too. Some states don't allow itemized deductions, which is accounted for in our calculations.
- When calculating the SALT deduction for itemized deductions, we use state and local taxes, and we assume your MAGI.
- We assume that there is no cap to itemized deductions, if a state allows them.
- We do not categorize itemized deductions (such as medical expenses or mortgage interest), which could be subject to specific caps per state.
Local Tax
- Depending on the state, we calculate local taxes at the city level or county level. We do not include local taxes on school districts, metro areas or combine county and city taxes.
- With the exception of NYC, Yonkers, and Portland/Multnomah County, we assume local taxes are a flat tax on either state taxable income or gross income.
Actual results may vary based on individual circumstances and changes in tax laws or IRS regulations. Estimates provided by this calculator do not guarantee income tax amounts or rates. Past performance is not indicative of future results.
SmartAsset.com does not provide legal, tax, accounting or financial advice (except for referring users to third-party advisers registered or chartered as fiduciaries ("Adviser(s)") with a regulatory body in the United States). Articles, opinions and tools are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual. Users should consult their accountant, tax advisor or legal professional to address their particular situation.
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Taxes in North Carolina
North Carolina State Tax Quick Facts
- Income tax: 4.25% flat rate
- Sales tax: 4.75% – 7.50%
- Property tax: 0.61% average effective rate
- Gas tax: 40.55 cents per gallon
In 2013, the North Carolina Tax Simplification and Reduction Act radically changed the state’s tax structure. Previously, North Carolina had a progressive income tax, with rates ranging from 6% to 7.75%. The new law introduced a flat rate income tax and more than doubled the standard deduction for North Carolina taxpayers. The effect was a significant overall reduction in taxes for taxpayers of all income levels.
Along with the state income tax, other taxes paid by North Carolinians include sales taxes (to both state and local authorities), property taxes and a gas tax. North Carolina’s estate tax was repealed as part of the 2013 law.
A financial advisor can help you understand how taxes fit into your overall financial goals. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
North Carolina Income Taxes
North Carolina moved to a flat income tax beginning with tax year 2014. For tax year 2025, all taxpayers pay a flat rate of 4.25%. That rate applies to taxable income, which is income minus all qualifying deductions and exemptions, as well as any contributions to a retirement plan like a 401(k) or an IRA.
In North Carolina, taxpayers can claim itemized deductions for charitable contributions, mortgage interest and property taxes. The deductions for the latter two categories cannot exceed $20,000. Most other deductions that were previously available in North Carolina, including the Net Business Income deduction and the College Savings Program deduction, are no longer available as of 2014.
Taxpayers who don’t itemize their deductions can claim North Carolina’s standard deduction. The standard deduction for the 2025 tax year is $12,750 for single filers and $25,500 for joint filers. However, there is no personal exemption in North Carolina for filers, spouses or dependents. To file your federal tax return, you can look into tax preparation software or hire a professional accountant.
North Carolina Sales Tax
The base sales tax in North Carolina is 4.75%. In addition to that statewide rate, every county in North Carolina collects a separate sales tax, which ranges from 2% to 2.75% in most counties. In Durham and Orange counties specifically, there is an additional 0.5% tax which is used to fund the Research Triangle Regional Public Transportation Authority. In sum, that means sales tax rates in North Carolina range from 6.75% to 7.50%. Below are the sales tax rates for all the counties in North Carolina.
Sales Tax Rates (Updated January 2025)
| County | Maximum Sales Tax Rate |
|---|---|
| Alamance County | 7.5% |
| Alexander County | 7% |
| Alleghany County | 7% |
| Anson County | 7% |
| Ashe County | 7% |
| Avery County | 6.75% |
| Beaufort County | 7% |
| Bertie County | 7% |
| Bladen County | 7% |
| Brunswick County | 6.75% |
| Buncombe County | 7% |
| Burke County | 7% |
| Cabarrus County | 7.25% |
| Caldwell County | 7% |
| Camden County | 6.75% |
| Carteret County | 7% |
| Caswell County | 7.5% |
| Catawba County | 7% |
| Chatham County | 7.5% |
| Cherokee County | 7% |
| Chowan County | 6.75% |
| Clay County | 7% |
| Cleveland County | 7% |
| Columbus County | 6.75% |
| Craven County | 7% |
| Cumberland County | 7% |
| Currituck County | 6.75% |
| Dare County | 6.75% |
| Davidson County | 7% |
| Davie County | 6.75% |
| Duplin County | 7% |
| Durham County | 7.5% |
| Edgecombe County | 7% |
| Fannin County | 7% |
| Forsyth County | 7% |
| Franklin County | 7.25% |
| Gaston County | 7% |
| Gates County | 6.75% |
| Graham County | 7% |
| Granville County | 7.25% |
| Greene County | 7% |
| Guilford County | 7% |
| Halifax County | 7% |
| Harnett County | 7.25% |
| Haywood County | 7% |
| Henderson County | 7% |
| Hertford County | 7% |
| Hoke County | 7% |
| Hyde County | 6.75% |
| Iredell County | 7% |
| Jackson County | 7% |
| Johnston County | 7.25% |
| Jones County | 7% |
| Lee County | 7% |
| Lenoir County | 7% |
| Lincoln County | 7% |
| Macon County | 7% |
| Madison County | 7% |
| Martin County | 7% |
| Mcdowell County | 7% |
| Mecklenburg County | 7.25% |
| Mitchell County | 6.75% |
| Montgomery County | 7% |
| Moore County | 7% |
| Nash County | 7% |
| New Hanover County | 7% |
| Northampton County | 7% |
| Onslow County | 7% |
| Orange County | 7.5% |
| Pamlico County | 6.75% |
| Pasquotank County | 7% |
| Pender County | 7% |
| Perquimans County | 7% |
| Person County | 7.5% |
| Pitt County | 7% |
| Polk County | 7% |
| Randolph County | 7% |
| Richmond County | 7% |
| Robeson County | 7% |
| Rockingham County | 7% |
| Rowan County | 7% |
| Rutherford County | 7% |
| Sampson County | 7% |
| Scotland County | 7% |
| Stanly County | 7% |
| Stokes County | 7% |
| Surry County | 7% |
| Swain County | 7% |
| Transylvania County | 7% |
| Tyrrell County | 6.75% |
| Union County | 7.25% |
| Vance County | 6.75% |
| Wake County | 7.5% |
| Warren County | 7% |
| Washington County | 7% |
| Watauga County | 7% |
| Wayne County | 7% |
| Wilkes County | 7% |
| Wilson County | 7% |
| Yadkin County | 7% |
| Yancey County | 7% |
Those rates apply to most products in the state as well as some services. Most types of food are subject to a lower tax rate of 2%, although prepared food is taxed at a rate of 9%. Meanwhile, prescription medications are exempt from sales tax, but over-the-counter drugs are not.
North Carolina Property Tax
Many counties in North Carolina collect property taxes at an effective rate (taxes paid as a percentage of home value) of less than 1%. The state’s effective property tax rate is 0.61%, which is below the national median. Furthermore, the typical homeowner in North Carolina pays about $2,044 annually in property taxes.
If you are looking into buying a home in North Carolina or are considering refinancing, our mortgage rates guide has all the information you need about getting a mortgage there.
North Carolina Capital Gains Tax
In North Carolina, both long- and short-term capital gains are treated as regular income, which means the 4.50% flat income tax rate applies.
North Carolina Gas Tax
North Carolina’s statewide gas tax is 40.55 cents per gallon.
North Carolina Estate Tax
North Carolina repealed its estate tax in 2013.
North Carolina Unauthorized Substances Tax
According to North Carolina law, anyone who “possesses an unauthorized substance,” including marijuana, cocaine, moonshine, mash and illicit mixed beverages, will have the substances confiscated and must then pay an excise tax within 48 hours.