Estimate your take-home pay in North Carolina for 2026. The state levies income tax with a top rate of 4.25% (Flat rate of 4.25%). This means a portion of every paycheck goes toward state income tax in addition to federal withholding, Social Security, and Medicare.
North Carolina Tax Snapshot
- State Income Tax
- 4.25% top rate
- Sales Tax (state + local avg)
- 6.97%
- Avg Property Tax Rate
- 0.78%
- Median Home Value
- $296,200
- State Minimum Wage
- $7.25/hr
Did You Know?
North Carolina has reduced its flat income tax from 5.25% targeting 3.99% by 2027.
How North Carolina Taxes Affect Your Paycheck
When you earn a paycheck in North Carolina, your employer withholds federal income tax, Social Security (6.2%), and Medicare (1.45%). On top of that, the state withholds income tax based on flat rate of 4.25%. The state minimum wage is $7.25 per hour, which sets the floor for hourly workers. Understanding these deductions helps you budget effectively and plan for the average 0.78% property tax rate on homes valued around $296,200.
North Carolina also levies a combined state and average local sales tax of 6.97%, which affects your overall purchasing power. Factor this into your budget when calculating how far your paycheck stretches.