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North Carolina Income Tax Guide

Flat 3.99% income-tax rateNCDOR lists 3.99% for taxable years beginning after 2025.
$12,750 single deductionThe state deduction rises to $25,500 jointly and $19,125 for heads of household.
State rules differ from federalNorth Carolina uses federal AGI but has its own additions, deductions, and itemizing rules.
Official SourcesNC tax rateNC deductions2026 worksheetIRS
NC tax rateNC deductions2026 worksheetIRS
Calculate for North Carolina

How North Carolina taxes work

Federal AGI is the starting pointNorth Carolina begins with federal adjusted gross income before applying state additions and deductions.
The state has its own deductionThe calculator applies the North Carolina standard deduction for the selected filing status, not the federal amount.
Taxable income uses one rateThe supported North Carolina taxable-income estimate is taxed at 3.99% for 2026.
Itemizing follows narrower rulesNorth Carolina itemized deductions are not identical to federal Schedule A and are not compared by the calculator.
State adjustments remain outsideRetirement adjustments, education benefits, credits, and other D-400 additions or deductions can alter a return.

Common North Carolina tax questions

Is the 3.99% rate progressive?No. North Carolina applies one individual income-tax rate to taxable income after applicable deductions.
Is the state deduction the federal deduction?No. North Carolina publishes separate amounts and separate rules for standard and itemized deductions.
Is there an extra deduction for age or blindness?NCDOR says there is no additional North Carolina standard deduction for taxpayers who are 65 or older or blind.
Does North Carolina add a city wage tax?No municipal wage income tax is added automatically. Sales and property taxes are separate from this estimate.
What about nonresident income?The calculator is primarily a full-year resident estimate and does not perform state income allocation.
Is this the same as Form D-400?No. It is a planning estimate, not a return or a calculation of every North Carolina adjustment and credit.