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North Carolina Income Tax Rates 2025

North Carolina has a flat income tax rate of 4.5% on all taxable income, regardless of how much you earn. The state transitioned from a progressive system to a flat tax in 2014 and has been gradually lowering the rate since.

Tax Type

Flat

Rate Range

4.5% flat

Brackets

1

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North Carolina is only part of the equation — federal taxes apply too.

State Tax Ranking

#26 of 51 Moderate tax burden at $75,000 income

At $75,000 income (single filer), North Carolina ranks #26 out of 51 states — where #1 is the lowest tax burden.

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Tax at Different Income Levels

Income State Tax Effective Rate Take-Home
$50,000 $2,250 4.50% $43,879
$75,000 $3,375 4.50% $63,676
$100,000 $4,500 4.50% $82,051
$150,000 $6,750 4.50% $118,183
$200,000 $9,000 4.50% $153,933

Single filer, standard deduction, 2025 tax year. Take-home is after federal + state income tax (excludes FICA).

Tax Overview

This state uses a flat income tax rate, meaning the same percentage applies to all taxable income regardless of how much you earn. This simplifies tax planning but means there is no bracket benefit for lower earners. The effective rate is very close to the headline rate after deductions.

Tax Planning Tip

With a flat tax rate, your effective state rate is predictable and consistent. Focus tax reduction on pre-tax contributions (401k, HSA) and any state-specific deductions or credits available.

With a flat tax, your North Carolina state income tax is simply 4.5% of your taxable income. North Carolina uses federal adjusted gross income as the starting point and provides a standard deduction of $12,750 for single filers. The state does not tax Social Security benefits.

Property Tax & Cost of Living

Property Tax Rate
0.73%
$2,373/yr on $325,000 home
Cost of Living Index
95
5% below national average
Median Home Value
$325,000
Housing index: 85 (avg = 100)

Property tax rate is the state average effective rate. Actual rates vary by county. COL index from BEA Regional Price Parities.

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Frequently asked questions

What is North Carolina's income tax rate in 2025?

North Carolina has a flat income tax rate of 4.5% on all taxable income, regardless of how much you earn.

Does North Carolina tax Social Security benefits?

North Carolina does not tax Social Security benefits at the state level.

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Last updated May 1, 2026 Tax year 2025-26

Data sources: IRS (irs.gov), Social Security Administration

This tool is general information only, not financial advice.

Reviewed by USTax Tools Editorial Desk

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