North Carolina has a flat income tax that keeps falling: it is 3.99% for 2026, down from 4.25% in 2025, with further cuts on the schedule.
A generous standard deduction shields the first chunk of income, and there are no local income taxes. Here is how the declining flat rate works on a real paycheck. See your exact take-home with the free North Carolina paycheck calculator.
How North Carolina's income tax works
North Carolina starts from your federal adjusted gross income, subtracts a standard deduction of $12,750 for single filers ($25,500 married), and applies a single flat rate to the rest. There are no personal exemptions and, helpfully, no local income taxes anywhere in the state.
The rate has been on a multi-year downward path: 4.5% in 2024, 4.25% in 2025, and 3.99% in 2026, with the legislature targeting still-lower rates if revenue goals are met.
The standard deduction is generous and doubles for married couples ($12,750 single / $25,500 joint), and with no personal exemptions the math is clean: take income after the deduction and multiply by the flat rate. A single filer on $60,000, for example, is taxed on about $47,250, which at the 3.99% 2026 rate works out to roughly $1,885 in state tax.
Your take-home on a $65,000 salary in North Carolina
Here is how a $65,000 salary breaks down for a single filer, using 2026 federal and FICA figures alongside North Carolina's a flat 3.99% income tax (2026).
| Item | Annual |
|---|---|
| Federal income tax | $5,620 |
| FICA (Social Security + Medicare) | $4,973 |
| North Carolina income tax | $2,085 |
| Take-home pay | $52,323 |
| Percent of gross kept | 80.5% |
On a $65,000 salary a single filer owes about $2,085 in North Carolina income tax (after the $12,750 standard deduction) and keeps roughly $52,323, or 80.5% of gross. Compare with Georgia.
North Carolina's take-home pay across salaries
Estimated annual take-home for a single filer at common salaries, using 2026 federal and FICA figures alongside North Carolina's a flat 3.99% income tax (2026). Open the North Carolina paycheck calculator to add a 401(k), HSA, or a different filing status.
| Annual salary | Take-home pay | % kept |
|---|---|---|
| $40,000 | $33,233 | 83.1% |
| $60,000 | $48,505 | 80.8% |
| $80,000 | $62,427 | 78.0% |
| $100,000 | $75,699 | 75.7% |
| $150,000 | $108,315 | 72.2% |
A falling rate and no local income tax
North Carolina's combination of a flat rate, a sizable standard deduction, and zero local income taxes makes take-home pay unusually easy to predict, you only have one state rate to think about.
Because the rate steps down most years, the same salary nets a little more each January. If you are comparing offers across years, use the current 3.99% figure rather than older 4.25% or 4.5% numbers.
With its flat rate, generous deduction, and no local income taxes, North Carolina sits among the Southeastern states competing on simple, low wage taxes — its 3.99% is now below flat-tax neighbor Georgia (5.19%) and well under the top rates of progressive states. That predictability is a real draw for workers weighing where to live.
How to keep more of your North Carolina paycheck
Pre-tax 401(k) and HSA contributions reduce your North Carolina taxable income as well as your federal income, and the HSA also avoids FICA, so they trim every layer of withholding.