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
Calculate your full tax picture
North Carolina is only part of the equation — federal taxes apply too.
State Tax Ranking
At $75,000 income (single filer), North Carolina ranks #26 out of 51 states — where #1 is the lowest tax burden.
Best states to move to from North Carolina →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 is the state average effective rate. Actual rates vary by county. COL index from BEA Regional Price Parities.
Compare North Carolina
South Carolina
0% – 6.4%
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Florida
No income tax
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New York
4% – 10.9%
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California
1% – 13.3%
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Texas
No income tax
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Pennsylvania
3.07% flat
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Illinois
4.95% flat
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Ohio
0% – 3.5%
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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.