North Carolina uses a flat state income tax. Everyone pays the same percentage on taxable wages, regardless of income.
PayslipIQ provides educational information and estimated calculations only. It does not provide tax, legal, financial, accounting, employment, benefits, or payroll advice. PayslipIQ is not a CPA firm, law firm, financial advisor, payroll provider, or tax authority. Always verify your paycheck, deductions, withholdings, and tax position with your employer's payroll department, a qualified CPA, the IRS, your state tax authority, or another appropriately qualified professional. Calculations are estimates; your actual paycheck may differ based on factors specific to your employer, location, benefits elections, and personal tax situation.
How a North Carolina paycheck is built
Every North Carolina worker pays federal income tax, calculated on the W-4 you submitted to your employer using the IRS Publication 15-T tables. Federal income tax is followed by FICA: 6.2 percent Social Security up to the annual wage base, plus 1.45 percent Medicare on every dollar. The 0.9 percent Additional Medicare Tax applies once year-to-date wages cross $200,000 single or $250,000 married filing jointly.
North Carolina adds a flat state income tax of approximately 4.50 percent. Verify the current rate with the NC Department of Revenue.
What changed recently in North Carolina
- Flat rate cut from 4.5% to 4.25% in 2025.
- Scheduled cut to 3.99% in 2026.
- Standard deduction tied to federal.
North Carolina payroll quirks workers should know
- NC-4 form for state withholding.
- No local payroll tax.
Example breakdown
A hypothetical North Carolina worker on a $65,000 annual salary, paid bi-weekly, single filer, no extra adjustments. Educational only, your real paycheck differs.
| Gross (bi-weekly) | $2500.00 |
| Federal income tax | -$250.00 |
| Social Security (6.2%) | -$155.00 |
| Medicare (1.45%) | -$36.25 |
| North Carolina state tax | -$112.50 |
| Estimated take-home | $1946.25 |
Run your own numbers in the North Carolina paycheck calculator.
Authoritative sources
Frequently asked questions
- Does North Carolina have state income tax?
- Yes. North Carolina uses a flat state income tax rate. Verify the current rate with the NC Department of Revenue.
- Are there local income taxes in North Carolina?
- No. North Carolina does not have local income taxes on wages.
- Does North Carolina have State Disability Insurance or Paid Family Leave premiums?
- No. North Carolina does not have state-mandated SDI or PFL employee premiums.
- Does North Carolina have daily-overtime rules?
- No. North Carolina follows federal FLSA: 1.5x for hours above 40 in a workweek.
- What is FICA on a North Carolina paycheck?
- FICA is federal: 6.2 percent Social Security up to the annual wage base, plus 1.45 percent Medicare on every dollar. The 0.9 percent Additional Medicare Tax applies above $200,000 single or $250,000 married filing jointly. FICA applies in every state.
- Where do I verify North Carolina state tax withholding?
- The NC Department of Revenue (https://www.ncdor.gov/) is the authoritative source. For your specific paycheck, contact your employer's payroll team or a CPA.
- Did my North Carolina tax drop in 2025?
- Yes. Flat rate fell from 4.5% to 4.25%. Schedule cuts to 3.99% in 2026.