North Carolina taxes individual income at a single flat rate, so once you know your taxable income after the state standard deduction the math is simple. This calculator applies the 2024 flat 4.5 percent rate and the correct standard deduction for your filing status.
How it works
North Carolina starts from your adjusted gross income, subtracts a standard or itemized deduction, and applies one flat rate to the rest:
taxable income = AGI − deduction
NC tax = taxable income × 4.5%The 2024 standard deduction is $12,750 (single or married filing separately), $25,500 (married filing jointly), or $19,125 (head of household). There is no personal exemption. Because the rate is flat, your marginal rate equals 4.5 percent at every income level above the deduction.
Example
A single filer with $60,000 of AGI subtracts the $12,750 standard deduction, leaving $47,250 taxable. The North Carolina tax is $47,250 × 4.5% = $2,126, an effective rate of about 3.5 percent of AGI.
Notes
This tool models only the state income tax. North Carolina itemized deductions are restricted (mortgage interest and property tax capped at $20,000 combined, plus charitable and medical), so most filers use the standard deduction. The flat rate is scheduled to decline in future tax years, so confirm the current rate and deduction on Form D-400 instructions at ncdor.gov.