Basic Info
Deductions
Insurance Premiums
Your North Carolina Paycheck Results
Calculating your paycheck…
Take-Home Pay:
$0.00
Per Pay Period:
$0.00
Tax Breakdown
Federal Income Tax:
$0.00
State Income Tax (NC):
$0.00
Social Security:
$0.00
Medicare:
$0.00
Additional Medicare:
$0.00
Total Tax:
$0.00
Deduction Breakdown
401(k) Contribution:
$0.00
Traditional IRA:
$0.00
HSA Contribution:
$0.00
FSA Contribution:
$0.00
Health Insurance:
$0.00
Dental Insurance:
$0.00
Vision Insurance:
$0.00
Other Deductions:
$0.00
Total Deductions:
$0.00
Gross Annual Income:
$0.00
Effective Tax Rate:
0.00%
North Carolina State Income Tax Information
North Carolina employs a flat income tax rate of 4.25% for the 2025 tax year. This rate applies uniformly to all individual taxpayers, regardless of income level.
Standard Deduction
For the 2025 tax year, NC offers the following standard deductions based on filing status:
- Single or Married Filing Separately: $12,750
- Married Filing Jointly or Qualifying Widow(er): $25,500
- Head of Household: $19,125
Retirement Income
North Carolina provides tax benefits for retirees:
- Social Security Benefits: Fully exempt from state income tax.
- Other Retirement Income: Certain government retirement benefits may be exempt under specific conditions.
FICA Taxes
| Tax Component | Rate | Income Limit |
|---|---|---|
| Social Security | 6.2% | Up to $176,100 |
| Medicare | 1.45% | No Limit |
| Additional Medicare | 0.9% | Income above $200,000 (Single) / $250,000 (Married) |
These taxes are automatically withheld from your salary paycheck and go toward funding Social Security and Medicare programs.
Pre-Tax Deductions
Common pre-tax deductions available to North Carolina residents include:
- Contributions to 401(k), 403(b), and other retirement plans
- Health and dental insurance premiums
- Health Savings Account (HSA) and Flexible Spending Account (FSA) contributions
- Pre-tax transit and commuter benefits
North Carolina-Specific Tax Credits and Deductions
| Credit or Deduction | Description |
|---|---|
| Child Tax Credit | Provides a credit of $1,900 for children aged 6 and under, and $1,600 for qualifying children aged 7 and up. |
| Low-Income Housing Tax Credit | Offers incentives for developers to build affordable housing, indirectly benefiting eligible residents. |
| Property Tax Relief for Seniors | Eligible seniors may qualify for property tax exemptions or deferrals based on income and age. |
Interesting Facts About NC Taxes
- North Carolina’s flat income tax rate is scheduled to decrease to 3.99% by 2026.
- The state does not impose local income taxes, simplifying tax calculations for residents.
- Recent legislative efforts aim to restore the state’s Earned Income Tax Credit (EITC) to support low- to moderate-income workers.
Frequently Asked Questions (FAQs)
- Does North Carolina have a flat income tax rate?
- Yes, North Carolina applies a flat income tax rate of 4.25% for the 2025 tax year.
- Are Social Security benefits taxed in North Carolina?
- No, Social Security benefits are fully exempt from North Carolina state income tax.
- What is the standard deduction in NC for 2025?
- The standard deduction varies by filing status: $12,750 for Single or Married Filing Separately, $25,500 for Married Filing Jointly or Qualifying Widow(er), and $19,125 for Head of Household.
- Are there any state-specific tax credits available?
- Yes, NC offers various tax credits, including the Child Tax Credit and incentives for affordable housing development.
- How is gross pay determined for North Carolina employees?
- Gross pay is the total amount earned before any taxes or deductions. It includes regular wages, bonuses, commissions, and overtime, and serves as the starting point for calculating withholdings in NC.