Estimate your take-home pay in North Carolina. The state applies a single flat income tax rate of 4.25% to taxable wages, so every paycheck gives up the same share to state tax on top of federal withholding, Social Security, and Medicare.
Disclaimer: All figures on this page are estimates for general informational purposes only and are not financial, tax, or legal advice. Tax rates, brackets, and withholding rules change and vary by locality and personal circumstances. Verify current rates with the North Carolina Department of Revenue or the IRS, and consult a qualified tax professional before making financial decisions.
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.
North Carolina vs. Other Flat-Tax States
North Carolina is one of 14 states that apply a single flat rate to taxable wages instead of graduated brackets. Its 4.25% rate is the 7th-lowest in that group, which runs from Arizona at 2.5% to Idaho at 5.695%.
Measured against all 42 states and jurisdictions that tax wages, North Carolina's 4.25% rate ranks 32nd-highest and sits below the national median top rate of 5.54%.
For comparison, nearby states line up like this: Georgia (top rate 5.39%); South Carolina (top rate 6.2%); Tennessee (no income tax); Virginia (top rate 5.75%).
How North Carolina's Flat Tax Affects Your Take-Home Pay
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.