North Carolina State Income Tax Overview
North Carolina (NC) state income tax rate: 4.50% flat (flat rate system)
North Carolina Income Tax Brackets (2026)
Flat 4.50% on North Carolina taxable income (reduced from 5.25% in 2022; scheduled to reduce to 2.49% by 2030)
North Carolina is aggressively reducing its flat income tax rate — from 5.25% in 2021 to 4.5% in 2024, with a target of 2.49% by 2030. This is part of a broader tax reform that also reduced corporate taxes and removed the corporate income tax entirely by 2030.
Median Household Income in North Carolina
The median household income in North Carolina is $57,341. North Carolina's median income is below the national average but growing, driven by Research Triangle Park (Raleigh-Durham) and Charlotte's banking sector. The rapid income tax reductions are contributing to significant population inflows from higher-tax states.
How to Use This Calculator for North Carolina
- Enter your gross income and filing status
- The calculator applies North Carolina's flat income tax rate of up to 4.50% flat
- Subtract your standard deduction and any applicable credits
- Review your estimated state and federal tax liability
Frequently Asked Questions
What is the North Carolina state income tax rate?
North Carolina has a flat income tax with a top rate of 4.50% flat. Flat 4.50% on North Carolina taxable income (reduced from 5.25% in 2022; scheduled to reduce to 2.49% by 2030).
How does North Carolina's income tax compare to the national average?
North Carolina's top income tax rate of 4.50% flat applies to a flat rate system. North Carolina is aggressively reducing its flat income tax rate — from 5.25% in 2021 to 4.5% in 2024, with a target of 2.49% by 2030. This is part of a broader tax reform that also reduced corporate taxes and removed the corporate income tax entirely by 2030.
What is the median household income in North Carolina?
The median household income in North Carolina is $57,341. North Carolina's median income is below the national average but growing, driven by Research Triangle Park (Raleigh-Durham) and Charlotte's banking sector. The rapid income tax reductions are contributing to significant population inflows from higher-tax states.
Is this state income tax calculator free to use for North Carolina?
Yes, this state income tax calculator is 100% free with no signup required. It includes North Carolina-specific tax rates and calculates your estimated state and federal tax liability instantly.