North Carolina Income Tax Calculator
Calculate your 2026 North Carolina state income tax. See your bracket breakdown, effective rate, and how North Carolina compares to neighboring states.
Your Tax Inputs
Effective Rate vs Neighboring States
North Carolina Tax Brackets (2026)
Federal vs North Carolina Tax Comparison
Estimate for your income and filing status. Federal uses 2026 brackets and standard deduction.
| Item | Federal | North Carolina | Total |
|---|
About North Carolina state taxes (Tax year 2026)
North Carolina has a flat income tax rate of 4.5% on all taxable income. The rate has been steadily declining from 5.25% and is scheduled to reach 3.99% by 2027 if revenue targets are met.
Groceries are exempt from sales tax. Prescription drugs are exempt.
North Carolina's 4.5% flat rate is near the national average and continues to decline, making the state increasingly competitive for tax purposes.
Filing in North Carolina: returns for tax year 2026 are administered by the North Carolina Department of Revenue and are generally filed in 2027 by the federal April deadline unless North Carolina declares a state-specific extension. Tax type on this return: Flat. Top marginal rate: 4.5%. State sales-tax rate: 4.75%. For the most current contact info, see the Federation of Tax Administrators directory.
North Carolina — What is North Carolina's income tax rate? North Carolina has a flat income tax rate of 4.5% on all taxable income. This rate is scheduled to decrease further to 3.99% by 2027.
North Carolina — Does North Carolina tax groceries? No, groceries (unprepared food) are exempt from North Carolina's 4.75% state sales tax.
North Carolina — Is North Carolina's tax rate decreasing? Yes, North Carolina has been steadily reducing its flat rate from 5.25%. It is scheduled to reach 3.99% by 2027, contingent on state revenue meeting certain thresholds.
How this page is reviewed
| Risk tier | High YMYL |
|---|---|
| Author | Calculover Editorial Team Tax education |
| Editorial owner | Calculover Tax & Payroll Desk State-tax methodology owner |
| Reviewer | Calculover Editorial Review Government-source and limitation review |
| Last reviewed | 2026-05-14 |
| Last verified | 2026-05-14 |
| Data effective date | 2026-01-01 |
| Jurisdiction | North Carolina |
Methodology
State-tax per-state pages apply the published 2026 bracket schedule, standard deduction, and filing-status rules for the listed jurisdiction. Federal AGI inputs are mapped to state taxable income before bracket math runs. Local taxes (NYC, Philadelphia, certain Ohio cities) are flagged but not embedded in the base estimate.
Assumptions
- The user enters federal AGI, filing status, and state-specific adjustments as provided.
- Brackets, standard deductions, and credits reflect the 2026 statutory values published by the state Department of Revenue and the Tax Foundation.
- Local income taxes and reciprocity-agreement situations are noted but not auto-applied.
Limitations
- These pages do not predict mid-year legislative changes, rate adjustments, or new local tax assessments.
- Multi-state filers, convenience-of-employer rules, and special-circumstance credits require additional tax-professional analysis.
Sources
- State Tax Rates, Federation of Tax Administrators
- State Individual Income Tax Rates and Brackets, Tax Foundation
- State Government Resources, Internal Revenue Service
Professional guidance: This page is for state-tax education only and is not tax, legal, financial, or investment advice. State tax decisions and multi-state filing should be reviewed with a CPA or enrolled agent licensed in the relevant states.