North Carolina Income Tax Rates & Brackets — 2026
North Carolina taxes individual income at a flat 3.99% in 2026. A single filer on $100,000 owes about $3,481 — an effective rate of 3.48%.
The North Carolina tax gauge at $100,000
North Carolina
$100,000 · Single · TY2026North Carolina tax brackets for 2026
Every filing status, as published by North Carolina Department of Revenue. Rates apply to North Carolina taxable income — that is income after the deductions and exemptions shown on each card.
Single
Standard deduction $12,750| Taxable income | Marginal rate |
|---|---|
| $0 and above | 3.99% |
Married filing jointly
Standard deduction $25,500| Taxable income | Marginal rate |
|---|---|
| $0 and above | 3.99% |
Married filing separately
Standard deduction $12,750| Taxable income | Marginal rate |
|---|---|
| $0 and above | 3.99% |
Head of household
Standard deduction $19,125| Taxable income | Marginal rate |
|---|---|
| $0 and above | 3.99% |
How the maths actually works
North Carolina's flat rate applies to taxable income, not to gross income. A single filer on $100,000 first subtracts $12,750 of deductions and exemptions, leaving $87,250 taxable — which is why the effective rate (3.48%) is lower than the statutory 3.99%. Marginal vs effective rate, explained.
What North Carolina costs at different incomes
Single filer, standard deduction, no dependents. Rank is out of 50 jurisdictions, lowest tax first.
| Gross income | Taxable income | State tax | Effective rate | Per month | National rank | vs median state |
|---|---|---|---|---|---|---|
| $50,000 | $37,250 | $1,486 | 2.97% | $124 | 27th of 50 | +$41 |
| $75,000 | $62,250 | $2,484 | 3.31% | $207 | 22nd of 50 | −$64 |
| $100,000 | $87,250 | $3,481 | 3.48% | $290 | 21st of 50 | −$246 |
| $150,000 | $137,250 | $5,476 | 3.65% | $456 | 20th of 50 | −$590 |
| $250,000 | $237,250 | $9,466 | 3.79% | $789 | 20th of 50 | −$1,292 |
| $500,000 | $487,250 | $19,441 | 3.89% | $1,620 | 20th of 50 | −$2,689 |
| $1,000,000 | $987,250 | $39,391 | 3.94% | $3,283 | 20th of 50 | −$5,374 |
North Carolina income tax calculator
Change the income, filing status and number of dependents to see the bracket-by-bracket breakdown.
- Income
- $100,000
- Standard deduction
- $12,750
- Exemptions
- $0
- Taxable income
- $87,250
Bracket by bracket
| Taxable income in bracket | Rate | Income taxed | Tax |
|---|---|---|---|
| $0 and above | 3.99% | $87,250 | $3,481.27 |
This estimates state income tax only, using the standard deduction and personal/dependent exemptions. It does not model itemised deductions, most credits, retirement-income exclusions, or local income taxes. Your actual bill will differ. See how we calculate this and North Carolina's full brackets and sources.
North Carolina versus its neighbours
State income tax owed by a single filer on $100,000 in 2026.
What changed since 2025
North Carolina's income tax changed between 2025 and 2026. A single filer on $100,000 owes $227 less than in 2025.
| 2025 | 2026 | |
|---|---|---|
| Top marginal rate | 4.25% | 3.99% |
| Structure | flat | flat |
| Standard deduction (single) | $12,750 | $12,750 |
| Tax on $100,000 (single) | $3,708 | $3,481 |
The 2025 rules are kept in full on the North Carolina 2025 tax year page, for amended returns and late filings.
Recent legislated changes
- CutEffective · S.L. 2023-134
The flat individual income tax rate fell from 4.25% to 3.99%.
- CutEffective · S.L. 2023-134
Additional rate reductions may apply for tax years beginning in 2027 if the General Fund revenue triggers in Session Law 2023-134 are met.
Retirement income
How North Carolina treats retirement income in tax year 2025. This is verified separately from the rate schedule above and can be for a different tax year.
North Carolina does not tax Social Security benefits.
Under the Bailey settlement, all distributions from a qualifying federal, state or local government retirement account in which the retiree was vested as of 12 August 1989 are exempt, whatever the source of the funds in the account. Other pension income is taxed at the flat rate.
Distributions from private 401(k), 403(b) and traditional IRA accounts are taxed as ordinary income unless they fall within a qualifying Bailey account.
- Bailey settlement exemption. Requires five or more years of creditable service in a qualifying state, local or federal retirement system as of 12 August 1989 for most systems.
Not modelled: Whether a particular account qualifies under Bailey depends on the individual's service history and is not modelled. The Social Security treatment is recorded from the general rule; it was not separately confirmed in the Bailey directive, which addresses government retirement accounts only.
Source: North Carolina Department of Revenue — Bailey Decision Concerning Federal, State and Local Retirement Benefits (retrieved 2026-09-04). Compare every state.
Capital gains
How North Carolina taxes a capital gain in tax year 2025. This is verified separately from the rate schedule above and can be for a different tax year.
North Carolina taxes a capital gain at the ordinary rates, up to 4.25%. There is no preferential rate and no general exclusion.
Taxed at the same rates as every other kind of income: the holding period changes nothing.
North Carolina starts from federal adjusted gross income and applies the additions and deductions on Form D-400 Schedule S, none of which reaches a capital gain.
Not modelled: The ordinary treatment is established by the absence of any capital gains modification from the state's own complete instructions and subtraction schedule, rather than by an affirmative statement that no preference exists.
Source: North Carolina Department of Revenue — 2025 Form D-401 Individual Income Tax Instructions — Line 9, Deductions from Federal Adjusted Gross Income, and Form D-400 Schedule S (retrieved 2026-09-19). Compare every state.
Local income taxes
No North Carolina county or municipality levies an individual income or earnings tax.
What else to know about North Carolina
- North Carolina levies a single flat rate of 3.99% on North Carolina taxable income.
- The rate has stepped down every year under S.L. 2021-180 as amended by S.L. 2023-134: 4.99% (2022), 4.75% (2023), 4.50% (2024), 4.25% (2025) and 3.99% (2026).
- S.L. 2023-134 provides for further reductions beginning in tax year 2027 if General Fund revenue triggers are met.
- North Carolina allows no personal or dependent exemption; the standard deduction is $12,750 single, $25,500 married filing jointly, $19,125 head of household.
- A child deduction of up to $3,000 per qualifying child is allowed, phasing out as adjusted gross income rises.
- No North Carolina county or municipality levies a local individual income tax.
Capital gains
Capital gains are included in North Carolina taxable income and taxed at the flat rate; there is no preferential rate or exclusion.
What our figures leave out
Sources
- 1.North Carolina Department of RevenueState revenue department2026 Income Tax Withholding Tables and Instructions for Employers (Form NC-30)Retrieved
- 2.Tax FoundationResearch organisation (cross-check)State Individual Income Tax Rates and Brackets, 2026Retrieved
- 3.North Carolina Department of RevenueState revenue departmentTax Rate SchedulesRetrieved
- 4.North Carolina General AssemblyState statuteG.S. 105-153.5(a)(1) - North Carolina standard deduction amountsRetrieved
Figures on this page were last checked against these sources on . Found something wrong? Report it.