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While we take all precautions to ensure that the data on this site is correct and up-to-date, we cannot be held liable for the accuracy of the tax data we present. Likewise, you can take an additional dependent exemption for each qualifying dependent (like a child or family member), who you financially support. Corporate income and franchise tax: Updates the North Carolina income tax code to conform to the Internal Revenue Code (IRC) as of January 1, 2017, Provides guidance on the Railroad Intermodal Facility Credit, Decreases the corporate income tax rate from 3 percent to 2.5 percent effective for tax years beginning on or after January 1, 2019, The Personal Exemption, which is not supported by the North Carolina income tax, is an additional deduction you can take if you (and not someone else) are primarily responsible for your own living expenses. Contact. North Carolina taxpayers are choosing a faster, more convenient way to file their State and Federal individual income tax returns by electronically filing. Qualifying deductions might include an itemized deduction, the North Carolina standard deduction, exemptions for dependants, business expenses, etc. Keep in mind that this estimator assumes all income is from wages, assumes the standard deduction, and does not account for tax credits. Sales Taxes: 6.75% [The total of all sales taxes for an area, including state, county and local taxes.Income Taxes: 8.25% [The total of all income taxes for an area, including state, county and local taxes.Federal income taxes are not included.] The current year 2019 North Carolina income tax rate of 5.25% continues the downward trend in rates from a high of 5.8% in 2014. Passed as part of the budget approved by the Republican-controlled North Carolina General Assembly, the state of North Carolina recently announced the corporate tax rate would be just 2.5% beginning January 1, 2019. North Carolina’s income tax is a flat rate of 5.499%. Complete form D-429 to determine the tax credits available for a disability of yours or a family members. How does North Carolina rank? Once you've filed your tax return, all you have to do is wait for your refund to arrive. Tax Bracket Tax Rate ; $0.00+ 5.25% : eFile your North Carolina tax return now . North Carolina Income Taxes. This page shows Tax-Brackets.org's archived North Carolina tax brackets for tax year 2007. Please be sure to send your completed tax forms to the correct address for your filing type. The chart below breaks down the North Carolina tax brackets using this model: eFiling is easier, faster, and safer than filling out paper tax forms. As in many other states, partnerships are not taxable in North Carolina. Is info on this page missing or out-of-date? COVID-19 Get the latest information on tax relief and other resources. start your online tax return today for free with TurboTax, list of North Carolina income tax deductions, list of North Carolina itemized deductions, Form D-400 - Individual Income Tax Return, Form D-422 - Estimated Tax Underpayment Form, Form D-429 - Disability Tax Credit Worksheet, Form NC-40 - Individual Estimated Income Tax, Form NC-40 Instructions - Estimated Tax Instructions, Printable North Carolina Tax Table & Tax Reference. North Carolina collects a state income tax at a maximum marginal tax rate of %, spread across tax brackets. To find a financial advisor near you, try our free online matching tool, or call 1-888-217-4199. Until updated 2018 tax rates become available for North Carolina, the tax brackets shown above and used in the income tax calculator will be from tax year 2016. Content © 2020 Tax-Brackets.org, all rights reserved. Tax-Rates.org provides a printable North Carolina datasheet including an income tax table, a list of North Carolina tax deductions, important URLs and addresses, and more. eFiling is easier, faster, and safer than filling out paper tax forms. Before 1989, the state had its own individual income tax system independent of the federal tax. Your average tax rate is 21.74% and your marginal tax rate is 35.15%.This marginal tax rate means that your immediate additional income will be taxed at this rate. Requirements for filing in North Carolina differ from federal returns. North Carolina's income tax brackets were last changed three years prior to 2012 for tax year 2009, and the tax rates were previously changed in 2007. If your state tax witholdings are greater then the amount of income tax you owe the state of North Carolina, you will receive an income tax refund check from the government to make up the difference. NCUI 604: File this application to establish your North Carolina Unemployment Insurance Tax Account. The North Carolina corporate tax rate was at 4% in 2017 and dropped to 3% in 2018, making the new 2.5% rate unprecedented. 3.00% effective for taxable years beginning on or after 1-1-2017. You can save time and money by electronically filing your North Carolina income tax directly with the . Essentially, it translates to $8,750.00 per year of tax-free income for single North Carolina taxpayers, and $17,500.00 for those filing jointly. North Carolina exempts all Social Security retirement benefits from income taxes. The North Carolina Department of Revenue reports that, as of 2010, workers who made up to $12,750 annually had a 6 percent tax rate. Usage is subject to our Terms and Privacy Policy. That rate applies to taxable income, which is income minus all qualifying deductions and exemptions, as well as any contributions to a retirement plan like a 401(k) or an IRA. Download .CSV file of NC income tax brackets, Download or print North Carolina income tax forms. Compare your take home after tax and estimate your tax return online, great for single filers, married filing jointly, head of household and widower North Carolina's personal income tax laws have become relatively straightforward, with a flat tax of 5.75 percent for all filers beginning in the tax year 2015. 4.00% effective for taxable years beginning on or after 1-1-2016. The state’s property and sales taxes are both moderate. Changes from 2019 are highlighted in yellow. Before the official 2020 North Carolina income tax rates are released, provisional 2020 tax rates are based on North Carolina's 2019 income tax brackets. The state supplemental income tax withholding rates that have thus far been released for 2020 are shown in the chart below. If you want to check the status of your North Carolina tax refund, you can visit the North Carolina Income Tax Refund page. Tax Rates for North Carolina, NC . This means that these brackets applied to all income earned in 2007, and the tax return that uses these tax rates was due in April 2008. D-400 can be eFiled, or a paper copy can be filed via mail. The first step towards understanding North Carolina’s tax code is knowing the basics. Currently, North Carolina’s corporate income tax rate is the lowest in the nation. 2013 North Carolina Tax Tables with 2021 Federal income tax rates, medicare rate, FICA and supporting tax and withholdings calculator. The latest available tax rates are for 2020 , and the North Carolina income tax brackets have been changed since 2011. For a more detailed estimate that takes these factors into account, click "View Detailed Estimate" (this will will redirect to an external website). Individual income tax North Carolina’s individual income tax has been in place since 1921. Both companies produce multiple editions for simple to very complex tax returns, so be sure to carefully compare the features offered by each package. You can learn more about how the North Carolina income tax compares to other states' income taxes by visiting our map of income taxes by state. North Carolina income is taxed at a constant rate of 5.25%. North Carolina Personal Income Taxes at a Glance. Our state ranking and income tax figures are based on a family of four (married parents with two children) earning the national median household income of $50,000 per year. While most in-depth tax software charges a fee, there are several free options available through the states, and simple versions are also offered free of charge by most tax software companies. Head over to the Federal income tax brackets page to learn about the Federal Income Tax, which applies in all states nationwide. North Carolina Income Tax Brackets; Single Tax Brackets; North Carolina — Single Tax Brackets TY 2019 - 2020. To e-file your North Carolina and Federal income tax returns, you need a piece of tax software that is certified for eFile by the IRS. Tax-Rates.org provides free access to tax rates, calculators, and more. For tax year 2019, all taxpayers pay a flat rate of 5.25%. This document is in PDF format. You may also electronically file your North Carolina tax return through a tax preparer or using. Workers who made between $12,750 and $60,000 had a 7 percent tax rate, and workers who made over $60,000 had a 7.75 percent tax rate. Deductions and personal exemptions are taken into account, but some state-specific deductions and tax credit programs may not be accounted for. As a “married filing jointly” couple in North Carolina, you would be in the 24% tax bracket at … (The Center … The corporate income tax rates are as follows: 2.50% effective for taxable years beginning on or after 1-1-2019. In North Carolina, income is taxed at a flat rate of 5.75% with no personal exemptions. For details on specific deductions available in North Carolina, see the list of North Carolina income tax deductions. You can think of the bracketed income tax as a flat amount for all of the money you earned up to your highest tax bracket, plus a marginal percentage of any amount you earned over that. If you failed to pay or underpaid your estimated taxes for the past tax year, you must file form D-422 to calculate any interest or penalties due with your income tax return. Outlook for the 2020 North Carolina income tax rate is … You can find all of North Carolina's 2020 income tax forms on the, Once you've filled out your North Carolina income tax return, you have several options for filing and paying your income tax. FREE for simple returns, with discounts available for Tax-Brackets.org users! Below, we have highlighted a number of tax rates, ranks, and measures detailing North Carolina’s income tax, business tax, sales tax, and property tax … The NC Income Tax is the Highest “Flat Tax” in The Country North Carolina is one of nine states that imposes a “flat” income tax. Help us keep Tax-Brackets.org up-to-date! Technically, you don't have just one "tax bracket" - you pay all of the North Carolina marginal tax rates from the lowest tax bracket to the tax bracket in which you earned your last dollar. Both North and South Carolina charge a state income tax to most workers. Both North Carolina's tax brackets and the associated tax rates were last changed one year prior to 2008 in 2007. There are -247 days left until Tax Day, on April 16th 2020. North Carolina has a flat income tax rate which applies to both single and joint filers. The North Carolina tax brackets on this page have been updated for tax year 2020, and are the latest brackets available. Note that the flat 37% rate applies even if an employee has submitted a federal Form W-4 claiming exemption from federal income tax withholding. File your North Carolina and Federal tax returns online with TurboTax in minutes. The three most common deductions encountered by taxpayers are the North Carolina Standard Deduction, the North Carolina Personal Exemption, and the North Carolina Dependent Deduction. State Tax Tables | Benefits of e-Filing your North Carolina tax return include instant submission, error checking, and faster refund response times. North Carolina's maximum marginal income tax rate is the 1st highest in the United States, ranking directly below North Carolina's %. The federal corporate income tax, by contrast, has a marginal bracketed corporate income tax.There are a total of twenty seven states with higher marginal corporate income tax rates then North Carolina. Most tax preparers can electronically file your return for you, or you can do it yourself using free or paid income tax software, like the examples listed below. Disclaimer: While we do our best to keep this list of North Carolina income tax rates up to date and complete, we cannot be held liable for errors or omissions. Taxes And North Carolina Gross Domestic Product Statistical Abstract 2013 - Part II. Statistical Abstract 2013 - Appendix - Tax Year 2012 Individual Income Tax Statistics Statistical Abstract 2013 - Part I. The state adopted a flat income tax rate in 2014. You can use our free North Carolina income tax calculator to get a good estimate of what your tax liability will be come April. North Carolina - Married Filing Jointly Tax Brackets, For earnings over $0.00, you'll pay 5.25% plus, The North Carolina tax brackets on this page were last updated from the, North Carolina tax return forms are available, Before the official 2020 North Carolina income tax brackets are released, the brackets used on this page are an, The North Carolina income tax estimator tool is provided by. Is any of our data outdated or broken? Unlike the Federal Income Tax, North Carolina's state income tax does not provide couples filing jointly with expanded income tax brackets. On the next page, you will be able to add more details like itemized deductions, tax credits, capital gains, and more. The others range from Indiana at 3.23%, to Massachusetts at 5.05%. Federal Tax Brackets | The North Carolina tax rate decreased from 5.50% last year (2018) to 5.25% this year (2019). Property Tax Rate: $7.63 [The property tax rate shown here is the rate per $1,000 of home value. Remember that North Carolina may have very different deduction laws from the Federal Income Tax, so you may have to write a whole new list of deductions for your North Carolina income tax return. It should take one to three weeks for your refund check to be processed after your income tax return is recieved. For comparison purposes, however, your North Carolina tax bracket is the tax bracket in which your last earned dollar in any given tax period falls. The 2020 state personal income tax brackets are updated from the North Carolina and, North Carolina tax forms are sourced from the North Carolina. Let us know in a single click, and we'll fix it as soon as possible. 2018 North Carolina Tax Tables with 2021 Federal income tax rates, medicare rate, FICA and supporting tax and withholdings calculator. North Carolina's income tax rates were last changed two years ago for tax year 2018, and the tax brackets were previously changed in 2012. Income tax deductions are expenses that can be deducted from your gross pre-tax income. North Carolina Directory of New Hires: Complete this form to report your new employee to the State. E-filing your return and filing early can help ensure your refund check gets sent as quickly as possible. California has the highest state income tax rate in the country at 13.3%. Overview of North Carolina Taxes North Carolina has a flat income tax rate of 5.25%, meaning all taxpayers pay this rate regardless of their taxable income or filing status. If you are not a resident of North Carolina, have a complicated tax return, or have other specialized circumstances you may need to download additional tax forms from the website. Please let us know so we can fix it! This site is a free public service not affiliated with the IRS or any governmental organization. You can mail your return to the at the correct address below, and include your payment by check or money order. You can use the income tax estimator to the left to calculate your approximate North Carolina and Federal income tax based on the most recent tax brackets. You must pay estimated income tax if you are self employed or do not pay sufficient tax withholding. income tax, corporate income tax and the sales tax. The Federal Income Tax, in contrast to the North Carolina income tax, has multiple tax brackets with varied bracket width for single or joint filers. Tax-Rates.org provides easy access to five of the most commonly used North Carolina income tax forms, in downloadable PDF format. NC’s tax rate of 5.25% across the board is actually the highest of those nine states. File your North Carolina and Federal tax returns online with TurboTax in minutes. If you are self employed or otherwise need to file form NC-40, reference these instructions to help you properly fill out and file your taxes. The Federal income tax also has a standard deduction, personal exemptions, and dependant deductions, though they are different amounts than North Carolina's and may have different rules. The average effective property tax rate in North Carolina is 0.86%, 21st-lowest in the country. View Sitemap. COVID-19 Updates: N.C. Department of Revenue Offers Relief in Response to COVID-19 Outbreak Important Notice: North Carolina Makes It Easier to Qualify for the Medical and Dental Expense Deduction - Impact on 2019 North Carolina Individual Income Tax Returns North Carolina has three income tax brackets. North Carolina income tax is a flat tax, meaning the state charges a consistent rate of 5.499 percent without income tax rates that fall into different tax brackets based on income level. The North Carolina tax calculator is designed to provide a simple illlustration of the state income tax due in North Carolina, to view a comprehensive tax illustration which includes federal tax, medicare, state tax, standard/itemised deductions (and more), please use the main 2020/21 tax reform calculator. Estimated tax payments must be sent to the North Carolina Department of Revenue on a quarterly basis. Information about the Extra Credit Grant Program. The primary sources of tax revenue for local governments are property taxes and sales taxes. Note: North Carolina's income tax has a single flat tax rate for all income. If you make $55,000 a year living in the region of North Carolina, USA, you will be taxed $11,957.That means that your net pay will be $43,043 per year, or $3,587 per month. Some states, including North Carolina, increase, but don't double, all or some bracket widths for joint filers (others include GA, MN, NM, ND, OK, RI, VT, and WI). Form D-400 is the general income tax return for North Carolina residents. Most US states impose either a flat income tax or a progressive income tax. Taxes And North Carolina Gross Domestic Product Statistical Abstract 2013 - Part II. Statistical Abstract 2013 - Appendix - Tax Year 2012 Individual Income Tax Statistics Statistical Abstract 2013 - Part I. Top individual income tax rate in North Carolina is 5.25% in 2020. North Carolina has a flat corporate income tax rate of 6.900% of gross income. North Carolina is among the flat tax states. For all of the tax forms we provide, visit our North Carolina tax forms library or the 's tax forms page. However, the deductions for taxable income range from $7,500 to $15,000, depending on filing status. States often adjust their tax brackets on a yearly basis, so make sure to check back later for North Carolina's updated tax year 2021 tax brackets! Prior to that, it had a progressive income tax. It’s one of just eight states that does this. When calculating your North Carolina income tax, keep in mind that the North Carolina state income tax brackets are only applied to your adjusted gross income (AGI) after you have made any qualifying deductions. Compare your take home after tax and estimate your tax return online, great for single filers, married filing jointly, head of household and widower Family members include dependants and/or a spouse. NC-4 or NC-4EZ: Have your employee complete this form which dictates how North Carolina income tax is withheld. In addition to marginal tax brackets, one of the major features of the North Carolina income tax is deductions. Please remember that the income tax code is very complicated, and while we can provide a good estimate of your Federal and North Carolina income taxes, your actual tax liability may be different. The current values of these deductions for tax year 2020 are as follows: The standard deduction, which North Carolina has, is a deduction that is available by default to all taxpayers who do not instead choose to file an itemized deduction. The IRS will start accepting eFiled tax returns in January 2020 - you can start your online tax return today for free with TurboTax . North Carolina moved to a flat income tax beginning with tax year 2014. This can make filing state taxes in the Tar Heel State simple, as even if your salary changes, you'll be paying the same rate. The two most popular tax software packages are H&R Block At Home, sold by the H&R Block tax preparation company, and TurboTax Federal & State, sold by the Intuit software company. If you filled out physical tax return forms, mail your completed North Carolina income tax return to the North Carolina no later then December 31st. Note: We don't currently have North Carolina's income tax brackets for tax year 2018. The sales tax in the state ranges from 6.75% to 7.5%, depending on the county. Using deductions is an excellent way to reduce your North Carolina income tax and maximize your refund, so be sure to research deductions that you mey be able to claim on your Federal and North Carolina tax returns. North Carolina has a flat income tax of 5.25% — All earnings are taxed at the same rate, regardless of total income level On this page: North Carolina Tax Calculator Other forms of retirement income are taxed at the North Carolina flat income tax rate of 5.25%. 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