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North Carolina Income Tax Calculator

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DEC 23, 2021

Overview of North Carolina Taxes

North Carolina now has a flat state income tax rate of 5.25%. The average 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.

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Household Income
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IRA Contribution
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Itemized Deductions
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Number of State Personal Exemptions
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Your Income Taxes Breakdown

Tax Type Marginal 
Tax Rate
Effective 
Tax Rate
2021 
Taxes*
Federal
FICA
State
Local
Total Income Taxes
Income After Taxes
Retirement Contributions
Take-Home Pay

* These are the taxes owed for the 2021 - 2022 filing season.

Your 2021 Federal Income Tax Comparison

  • Your marginal federal income tax rate
  • Your effective federal income tax rate
  • Your federal income taxes

Total Estimated 2021 Tax Burden

Income Tax $
Sales Tax $
Fuel Tax $
Property Tax$
Total Estimated Tax Burden $
Percent of income to taxes = %
$
  • About This Answer

    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. Also, we separately calculate the federal income taxes you will owe in the 2020 - 2021 filing season based on the Trump Tax Plan.

    How Income Taxes Are Calculated

    • 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).
    • Next, from AGI we subtract exemptions and deductions (either itemized or standard) to get your taxable income. Exemptions can be claimed for each taxpayer as well as dependents such as one’s spouse or children.
    • Based on your filing status, your taxable income is then applied to the the tax brackets to calculate your federal income taxes owed for the year.
    • Your location will determine whether you owe local and / or state taxes.
    ...read more
  • Last Updated: January 1, 2021

    When Do We Update? - We regularly check for any updates to the latest tax rates and regulations.

    Customer Service - If you would like to leave any feedback, feel free to email info@smartasset.com.

    ...read more
  • Our Expert

    ...read more
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Taxes in North Carolina

North Carolina State Tax Quick Facts

  • Income tax: 5.25% flat rate
  • Sales tax: 6.75% - 7.50%
  • Property tax: 0.77% average effective rate
  • Gas tax: 36.10 cents per gallon both of regular gasoline and diesel

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 in North Carolina can help you understand how taxes fit into your overall financial goals. Financial advisors can also help with investing and financial planning - including retirement, homeownership, insurance and more - to make sure you are preparing for the future.

North Carolina Income Taxes

North Carolina moved to a flat income tax beginning with tax year 2014. For tax year 2021, all taxpayers pay a flat rate of 5.25%. 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 2021 tax year is $10,750 for single filers, $21,500 for joint filers and $16,125 for heads of household. 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 2.25% 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 2022)

CountyState RateCounty RateTotal Sales Tax
Alamance County4.750%2.000%6.750%
Alexander County4.750%2.250%7.000%
Alleghany County4.750%2.000%6.750%
Anson County4.750%2.250%7.000%
Ashe County4.750%2.250%7.000%
Avery County4.750%2.000%6.750%
Beaufort County4.750%2.000%6.750%
Bertie County4.750%2.250%7.000%
Bladen County4.750%2.000%6.750%
Brunswick County4.750%2.000%6.750%
Buncombe County4.750%2.250%7.000%
Burke County4.750%2.000%6.750%
Cabarrus County4.750%2.250%7.000%
Caldwell County4.750%2.000%6.750%
Camden County4.750%2.000%6.750%
Carteret County4.750%2.000%6.750%
Caswell County4.750%2.000%6.750%
Catawba County4.750%2.250%7.000%
Chatham County4.750%2.250%7.000%
Cherokee County4.750%2.250%7.000%
Chowan County4.750%2.000%6.750%
Clay County4.750%2.250%7.000%
Cleveland County4.750%2.000%6.750%
Columbus County4.750%2.000%6.750%
Craven County4.750%2.000%6.750%
Cumberland County4.750%2.250%7.000%
Currituck County4.750%2.000%6.750%
Dare County4.750%2.000%6.750%
Davidson County4.750%2.250%7.000%
Davie County4.750%2.000%6.750%
Duplin County4.750%2.250%7.000%
Durham County4.750%2.750%7.500%
Edgecombe County4.750%2.250%7.000%
Forsyth County4.750%2.250%7.000%
Franklin County4.750%2.000%6.750%
Gaston County4.750%2.250%7.000%
Gates County4.750%2.000%6.750%
Graham County4.750%2.250%7.000%
Granville County4.750%2.000%6.750%
Greene County4.750%2.250%7.000%
Guilford County4.750%2.000%6.750%
Halifax County4.750%2.250%7.000%
Harnett County4.750%2.250%7.000%
Haywood County4.750%2.250%7.000%
Henderson County4.750%2.000%6.750%
Hertford County4.750%2.250%7.000%
Hoke County4.750%2.000%6.750%
Hyde County4.750%2.000%6.750%
Iredell County4.750%2.000%6.750%
Jackson County4.750%2.250%7.000%
Johnston County4.750%2.000%6.750%
Jones County4.750%2.250%7.000%
Lee County4.750%2.250%7.000%
Lenoir County4.750%2.000%6.750%
Lincoln County4.750%2.250%7.000%
Macon County4.750%2.000%6.750%
Madison County4.750%2.250%7.000%
Martin County4.750%2.250%7.000%
McDowell County4.750%2.000%6.750%
Mecklenburg County4.750%2.500%7.250%
Mitchell County4.750%2.000%6.750%
Montgomery County4.750%2.250%7.000%
Moore County4.750%2.250%7.000%
Nash County4.750%2.000%6.750%
New Hanover County4.750%2.250%7.000%
Northampton County4.750%2.000%6.750%
Onslow County4.750%2.250%7.000%
Orange County4.750%2.750%7.500%
Pamlico County4.750%2.000%6.750%
Pasquotank County4.750%2.250%7.000%
Pender County4.750%2.000%6.750%
Perquimans County4.750%2.000%6.750%
Person County4.750%2.000%6.750%
Pitt County4.750%2.250%7.000%
Polk County4.750%2.000%6.750%
Randolph County4.750%2.250%7.000%
Richmond County4.750%2.000%6.750%
Robeson County4.750%2.250%7.000%
Rockingham County4.750%2.250%7.000%
Rowan County4.750%2.250%7.000%
Rutherford County4.750%2.250%7.000%
Sampson County4.750%2.250%7.000%
Scotland County4.750%2.000%6.750%
Stanly County4.750%2.250%7.000%
Stokes County4.750%2.000%6.750%
Surry County4.750%2.250%7.000%
Swain County4.750%2.250%7.000%
Transylvania County4.750%2.000%6.750%
Tyrrell County4.750%2.000%6.750%
Union County4.750%2.000%6.750%
Vance County4.750%2.000%6.750%
Wake County4.750%2.500%7.250%
Warren County4.750%2.000%6.750%
Washington County4.750%2.000%6.750%
Watauga County4.750%2.000%6.750%
Wayne County4.750%2.000%6.750%
Wilkes County4.750%2.250%7.000%
Wilson County4.750%2.000%6.750%
Yadkin County4.750%2.000%6.750%
Yancey County4.750%2.000%6.750%

Those rates apply to most products in the state as well as some services, including the repair of tangible personal property (including automobiles), laundry service and admissions to entertainment events (e.g. movie tickets). Most types of food are subject to a lower tax rate of 2%. The retail sale of an aircraft is subject to 4.75% sales tax with a maximum of $2,500. The retail sale of a boat is subject to a lower rate of 3% of the purchase price or a $1,500 total, whichever is lower.

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%, making the state average effective property tax rate 0.77%, which is below the national average. Furthermore, the typical homeowner in North Carolina pays about $1,493 annually in property taxes, good for just a little more than $120 per month.

In general, however, rates are higher in North Carolina’s largest cities. For example, in Mecklenburg County, which includes Charlotte, the effective property tax rate is 1.05%. 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 5.25% flat income tax rate applies.

North Carolina Gas Tax

North Carolina’s statewide gas tax is 36.10 cents per gallon for both regular and diesel.

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.

Photo credit: flickr
  • Basketball legend Michael Jordan is from Wilmington, North Carolina, where he was famously cut from the varsity basketball team at Emsley A. Laney High School as a sophomore.
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