North Carolina Retirement Income Tax 2025
See how North Carolina treats Social Security, private pensions, annuities, and IRA distributions for a full-year resident, then run the official-source estimate with your own income.
Social Security
Federally taxable Social Security may be deducted from North Carolina income.
Pension and IRA income
Private pension and IRA income included in federal adjusted gross income is generally taxable.
Estimated 2025 state tax
$2,763Resident return; local taxes and unmodeled credits excluded.
Modeled state taxable income
$65,000Retirement-income subtraction
$15,000Federally taxable Social Security may be deducted from North Carolina income.
Private pension and IRA income included in federal adjusted gross income is generally taxable.
Scope: Qualifying federal, state, and local government benefits protected by the Bailey decision are not modeled.
North Carolina worked example
For a single filer age 68 with $80,000 of federal AGI, including $15,000 of federally taxable Social Security, $30,000 of pension income, $20,000 of IRA distributions, and $15,000 of other state-taxable income:
Retirement subtraction
$15,000
Modeled state taxable income
$65,000
Estimated 2025 state tax
$2,763
This is an illustration, not a tax return. Local taxes, credits, and unmodeled state adjustments are excluded.
What this model does not include
Qualifying federal, state, and local government benefits protected by the Bailey decision are not modeled. Review the official instructions before filing.
Review the full North Carolina income tax guide →North Carolina retirement income tax FAQs
Does North Carolina tax Social Security benefits in 2025?
Federally taxable Social Security may be deducted from North Carolina income.
Does North Carolina tax pensions and IRA withdrawals?
Private pension and IRA income included in federal adjusted gross income is generally taxable.
What does the North Carolina retirement tax example include?
The example uses a single filer age 68 with $80,000 of federal AGI, $15,000 of federally taxable Social Security, $30,000 of private pension income, $20,000 of IRA distributions, and $15,000 of other state-taxable income.
Is this a complete North Carolina resident return?
No. The estimate focuses on retirement-income treatment and the state rate schedule. It excludes local income tax and does not reproduce every deduction, credit, addition, subtraction, or special pension rule. Qualifying federal, state, and local government benefits protected by the Bailey decision are not modeled.
Sources
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