North Carolina State Income Tax Filing
Flat 3.99%
Rate
Flat 3.99% on North Carolina taxable income
Standard deduction
$12,750 single / $25,500 joint
Local income tax
None anywhere in the state
Personal exemption
None — the standard deduction does the work
North Carolina income tax at a glance
North Carolina has one of the lowest flat income tax rates among states that levy one, at 3.99%, combined with a standard deduction close to half the federal figure. The rate has come down in scheduled steps over several years and further reductions are legislated subject to revenue conditions, which is worth knowing when you file for an earlier year — that year's higher rate applies, not today's. There are no local income taxes anywhere in the state, so the 3.99% is the whole state and local income tax picture. The Research Triangle and Charlotte both draw significant relocation from higher-tax states and from abroad, which means a large share of North Carolina returns are part-year returns, and the year you arrive is the one that needs care: allocating income between North Carolina and the state you left is the part that determines the result.
North Carolina tax rates
| Rate | Taxable income |
|---|---|
| 3.99% | All taxable income |
North Carolina: Flat 3.99%.
- Standard deduction
- $12,750 single · $25,500 joint
- Personal exemption
- None
Rates and thresholds as of . State legislatures change these mid-year and several states index brackets annually — check against North Carolina Department of Revenue before relying on a figure.
What to watch out for in North Carolina
- The rate has been reduced in legislated steps and further cuts are conditional on revenue triggers. Returns for earlier years use the rate in force for that year.
- North Carolina grants no personal exemption, but its standard deduction is among the more generous of the flat-rate states, which offsets it for most filers.
- There are no county or municipal income taxes in North Carolina, so unlike New York or Ohio there is no additional local layer to compute.
- North Carolina does not allow itemised deductions to mirror the federal set — the state itemised deduction is capped and limited to particular categories, so itemising federally does not mean itemising for North Carolina.
Forms and deadlines
- Which form
- Form D-400, with Schedule PN for part-year residents and non-residents
- Deadline
- Aligns with the federal deadline.
- State authority
- North Carolina Department of Revenue
Federal deadlines are separate from state ones. Our US tax deadlines page covers the federal calendar, and the federal tax brackets apply on top of whatever North Carolina charges.
Where these figures come from
Rates, bracket floors, standard deductions and exemptions are taken from the compilation below, stated as of January 1, 2026 and built from state statutes, forms and instructions. The state authority is always the final word on your own position.
Reviewed by Teja K, CPA · last reviewed . General information, not tax advice for your situation. State tax law changes frequently — confirm before acting.
North Carolina tax questions
What is the North Carolina income tax rate?
A flat 3.99% on North Carolina taxable income, for all filing statuses. North Carolina has been lowering this rate in scheduled steps, so earlier tax years carry a higher rate. Figures are as of January 1, 2026.
What is the North Carolina standard deduction?
$12,750 for a single filer and $25,500 for married couples filing jointly. North Carolina grants no personal exemption, so the standard deduction is the whole of your base allowance. State itemised deductions are more restricted than federal ones, so itemising on your federal return does not automatically mean itemising for North Carolina.
Are there local income taxes in North Carolina?
No. No city or county in North Carolina levies an income tax, including Charlotte, Raleigh and Durham. The flat 3.99% state rate is the entire state and local income tax picture, which makes North Carolina simpler than states with a municipal layer.
I moved to North Carolina from another state. What do I file?
Form D-400 with Schedule PN as a part-year resident, reporting income received while a North Carolina resident plus any North Carolina-source income for the rest of the year. You will also file a part-year return in the state you left. Deductions are prorated to the North Carolina share of income rather than granted in full.
Does North Carolina tax retirement income?
Social Security benefits are not taxed by North Carolina. Most other retirement income, including 401(k) and IRA distributions and private pensions, is taxable at the flat rate, with an exception for certain government pensions covered by a long-standing settlement. This makes North Carolina less favourable for retirees than Illinois but more so than states with high graduated rates.
We file North Carolina returns alongside your federal
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