North Carolina paycheck taxes at a glance
| State income tax | Flat 3.99% |
|---|---|
| Standard deduction | $12,750 single, $25,500 joint, $19,125 head of household |
| Pre-tax deductions | 401(k), HSA and health premiums lower state tax too |
| Local income tax | None on wages |
| State payroll deductions | None |
| Reciprocity | None |
| Figures | Tax year 2026 |
Every paycheck also has federal income tax, Social Security (6.2% up to $184,500) and Medicare (1.45%), worked out with the same 2026 IRS figures as ourmain paycheck calculator.
Worked examples
A $60,000 salary in Charlotte, single, paid every two weeks
| Per paycheck | Per year | |
|---|---|---|
| Gross pay | $2,307.69 | $60,000 |
| Federal income tax | − $193.08 | − $5,020 |
| Social Security and Medicare | − $176.54 | − $4,590 |
| North Carolina income tax | − $72.51 | − $1,885 |
| Take-home pay | $1,865.57 | $48,505 |
Single, paid every two weeks (26 paychecks). North Carolina taxable income is $47,250 and the state tax is $1,885, an effective 3.142% of gross pay. After the $12,750 standard deduction the rest of the salary is taxed at 3.99%, so state tax works out to about 3.1% of gross pay.
A $110,000 household in Raleigh, married filing jointly with two children
| Per paycheck | Per year | |
|---|---|---|
| Gross pay | $4,230.77 | $110,000 |
| 401(k) at 5% | − $211.54 | − $5,500 |
| Federal income tax | − $145.38 | − $3,780 |
| Social Security and Medicare | − $323.65 | − $8,415 |
| North Carolina income tax | − $118.17 | − $3,072 |
| Take-home pay | $3,432.03 | $89,233 |
Married filing jointly, 2 children, paid every two weeks (26 paychecks). North Carolina taxable income is $77,000 and the state tax is $3,072, an effective 2.793% of gross pay. The 5% 401(k) deferral brings adjusted gross income to $104,500, where the child deduction is $1,000 per child, on top of the $25,500 joint standard deduction.
The rate fell to 3.99% in 2026
Session Law 2023-134 set the North Carolina income tax rate at 3.99% for tax year 2026, down from 4.25% in 2025. Because the tax is flat, every dollar of taxable income is taxed at the same rate, so your marginal and average state rates are close once you are well above the standard deduction. The NC-30 withholding tables for 2026 already use the new rate.
Child deduction: up to $3,000 per child
For each child who qualifies for the federal child tax credit you subtract a deduction from income. It is $3,000 per child at low incomes and drops by $500 at each income step: single filers lose it entirely above $70,000 of adjusted gross income, heads of household above $105,000 and joint filers above $140,000. At $110,000 joint income, for example, each child is worth $1,000. The calculator applies the right step for your income.
No local income tax and no reciprocity
No North Carolina city or county taxes wages, and there is no state disability, paid family leave or employee unemployment deduction. Unemployment insurance is paid by employers only. North Carolina has no reciprocal agreements, so if you live in Virginia or South Carolina and work here, North Carolina taxes those wages and your home state usually gives a credit.
Federal tip and overtime deductions do not carry over
The new federal deductions for tips, overtime pay and car loan interest lower your federal tax only. NCDOR has confirmed that North Carolina did not enact matching state deductions, so tips and overtime stay fully taxable at 3.99%. Traditional 401(k) deferrals, HSA contributions and cafeteria-plan health premiums are excluded from North Carolina wages just as they are for federal tax.
North Carolina vs. neighboring states
Take-home pay on a $75,000 salary, single, no pre-tax deductions and no local tax:
| State | Income tax | State tax + programs | Take-home |
|---|---|---|---|
| North Carolina | Flat 3.99% | $2,484 | $59,109 |
| Virginia | 2% to 5.75% (4 brackets) | $3,498 | $58,094 |
| Tennessee | None on wages | $0 | $61,593 |
| Georgia | Flat 4.99% | $2,994 | $58,599 |
| South Carolina | 1.99% to 5.21% (2 brackets) | $2,657 | $58,935 |
Where you work and where you live can both matter. See paycheck calculators for every state for the full comparison.