North Carolina State Income Tax Calculator
Quickly estimate your North Carolina state income tax for 2024–2025. This professional-grade tool supports all filing statuses, the standard deduction or NC itemized deductions, and common NC adjustments so you can understand your taxable income, state tax owed, and effective state tax rate.
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Data Source and Methodology
Authoritative Source: North Carolina Department of Revenue (NCDOR) — Tax Rate Schedules and Individual Income Tax Estimator materials.
- NCDOR: Individual Income Tax — Tax Rate Schedules (accessed 2024–2025). Direct link.
- NCDOR: 2024 Individual Income Tax Estimator Worksheet. Direct link.
- North Carolina General Statutes and Session Law 2021‑180 (rate reductions).
All calculations are strictly based on the formulas and data provided by this source.
The Formula Explained
We model North Carolina’s flat tax as follows (LaTeX format):
\(\mathrm{AGI} = \max\{0,\, W - P\}\)
\(D = \begin{cases}
\text{SD}(\text{status}, \text{year}), & \text{if Standard}\\
\text{ID}, & \text{if Itemized}
\end{cases}\)
\(\mathrm{NC\ Taxable} = \max\{0,\, \mathrm{AGI} + A - S - D\}\)
\(\mathrm{Tax} = \mathrm{NC\ Taxable} \times r_{\text{year}}\)
\(\mathrm{AfterTax} = W - \mathrm{Tax}, \quad
\mathrm{EffRate} = \begin{cases}\mathrm{Tax}/W,& W>0\\ 0,& W=0\end{cases}\)
Glossary of Variables
How It Works: A Step‑by‑Step Example
Scenario: Tax Year 2024, Filing Status Single, W = $85,000, P = $8,000, A = $0, S = $0, Deduction Type = Standard.
- AGI = max(0, 85,000 − 8,000) = 77,000.
- Standard Deduction SD(Single, 2024) = 12,750.
- NC Taxable = max(0, 77,000 + 0 − 0 − 12,750) = 64,250.
- Tax = 64,250 × 0.045 = $2,891.25.
- After‑Tax Income (state only) = 85,000 − 2,891.25 = $82,108.75.
- Effective State Tax Rate = 2,891.25 ÷ 85,000 ≈ 3.40%.
Frequently Asked Questions (FAQ)
What is North Carolina’s state income tax rate?
NC uses a flat rate: 4.50% for 2024 and 4.25% for 2025 (per NCDOR and enacted legislation).
Which standard deduction should I use?
For 2024: $12,750 (Single or MFS), $25,500 (MFJ), $19,125 (Head of Household). The calculator applies these automatically based on your filing status.
Can I itemize in North Carolina?
Yes, but NC itemized deductions differ from federal rules and are limited. If you select Itemized, input your NC‑allowed itemized total.
Does this include Social Security or federal taxes?
No. This tool estimates North Carolina state income tax only. It does not include federal income tax, FICA, or other withholdings.
Do pre‑tax deductions lower NC taxes?
Often yes. NC generally starts from federal AGI, so eligible pre‑tax payroll deductions can lower NC taxable income.
Are credits included (e.g., child credit)?
No. This simplified estimator excludes credits. Consult NCDOR resources or a tax professional for credit eligibility.
Is the 2025 standard deduction final?
Amounts shown reflect the latest published figures available at the time of writing. They may change with new legislation or guidance. Always verify with NCDOR.