E-filing your return and filing early can help ensure your refund check gets sent as quickly as possible. Both North and South Carolina charge a state income tax to most workers. 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. 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. 4.00% effective for taxable years beginning on or after 1-1-2016. The corporate income tax rates are as follows: 2.50% effective for taxable years beginning on or after 1-1-2019. Unlike the Federal Income Tax, North Carolina's state income tax does not provide couples filing jointly with expanded income tax brackets. Both North Carolina's tax brackets and the associated tax rates were last changed one year prior to 2008 in 2007. Most US states impose either a flat income tax or a progressive income tax. D-400 can be eFiled, or a paper copy can be filed via mail. Currently, North Carolina’s corporate income tax rate is the lowest in the nation. North Carolina income is taxed at a constant rate of 5.25%. The others range from Indiana at 3.23%, to Massachusetts at 5.05%. Contact. 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. State Tax Tables | 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 - 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. This document is in PDF format. 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. 3.00% effective for taxable years beginning on or after 1-1-2017. Content © 2020 Tax-Brackets.org, all rights reserved. North Carolina has a flat income tax rate which applies to both single and joint filers. COVID-19 Get the latest information on tax relief and other resources. Statistical Abstract 2013 - Appendix - Tax Year 2012 Individual Income Tax Statistics Statistical Abstract 2013 - Part I. Tax-Rates.org provides easy access to five of the most commonly used North Carolina income tax forms, in downloadable PDF format. 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. North Carolina's maximum marginal income tax rate is the 1st highest in the United States, ranking directly below North Carolina's %. Keep in mind that this estimator assumes all income is from wages, assumes the standard deduction, and does not account for tax credits. 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. North Carolina’s income tax is a flat rate of 5.499%. Please be sure to send your completed tax forms to the correct address for your filing type. The North Carolina corporate tax rate was at 4% in 2017 and dropped to 3% in 2018, making the new 2.5% rate unprecedented. 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. Estimated tax payments must be sent to the North Carolina Department of Revenue on a quarterly basis. 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. North Carolina Personal Income Taxes at a Glance. 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 free access to tax rates, calculators, and more. 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. Outlook for the 2020 North Carolina income tax rate is … How does North Carolina rank? 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. As in many other states, partnerships are not taxable in North Carolina. The 2020 state personal income tax brackets are updated from the North Carolina and, North Carolina tax forms are sourced from the North Carolina. The first step towards understanding North Carolina’s tax code is knowing the basics. On the next page, you will be able to add more details like itemized deductions, tax credits, capital gains, and more. NCUI 604: File this application to establish your North Carolina Unemployment Insurance Tax Account. 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. North Carolina taxpayers are choosing a faster, more convenient way to file their State and Federal individual income tax returns by electronically filing. income tax, corporate income tax and the sales tax. 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. 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 … North Carolina Income Taxes. 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. You must pay estimated income tax if you are self employed or do not pay sufficient tax withholding. The latest available tax rates are for 2020 , and the North Carolina income tax brackets have been changed since 2011. 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. 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. Download .CSV file of NC income tax brackets, Download or print North Carolina income tax forms. Note: We don't currently have North Carolina's income tax brackets for tax year 2018. Complete form D-429 to determine the tax credits available for a disability of yours or a family members. 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.] Help us keep Tax-Brackets.org up-to-date! eFiling is easier, faster, and safer than filling out paper tax forms. Note: North Carolina's income tax has a single flat tax rate for all income. NC-4 or NC-4EZ: Have your employee complete this form which dictates how North Carolina income tax is withheld. 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. 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. North Carolina has a flat corporate income tax rate of 6.900% of gross income. Head over to the Federal income tax brackets page to learn about the Federal Income Tax, which applies in all states nationwide. Property Tax Rate: $7.63 [The property tax rate shown here is the rate per $1,000 of home value. North Carolina Directory of New Hires: Complete this form to report your new employee to the State. 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. In North Carolina, income is taxed at a flat rate of 5.75% with no personal exemptions. 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. Likewise, you can take an additional dependent exemption for each qualifying dependent (like a child or family member), who you financially support. The North Carolina tax rate decreased from 5.50% last year (2018) to 5.25% this year (2019). 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 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 In addition to marginal tax brackets, one of the major features of the North Carolina income tax is deductions. 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. File your North Carolina and Federal tax returns online with TurboTax in minutes. 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. 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. 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. For tax year 2019, all taxpayers pay a flat rate of 5.25%. (The Center … If you want to check the status of your North Carolina tax refund, you can visit the North Carolina Income Tax Refund page. You can save time and money by electronically filing your North Carolina income tax directly with the . 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. It’s one of just eight states that does this. Tax Rates for North Carolina, NC . The state’s property and sales taxes are both moderate. Once you've filed your tax return, all you have to do is wait for your refund to arrive. Prior to that, it had a progressive income tax. 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. The state supplemental income tax withholding rates that have thus far been released for 2020 are shown in the chart below. Form D-400 is the general income tax return for North Carolina residents. Usage is subject to our Terms and Privacy Policy. Compare your take home after tax and estimate your tax return online, great for single filers, married filing jointly, head of household and widower 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. Is any of our data outdated or broken? The average effective property tax rate in North Carolina is 0.86%, 21st-lowest in the country. Is info on this page missing or out-of-date? It should take one to three weeks for your refund check to be processed after your income tax return is recieved. 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, North Carolina is among the flat tax states. Family members include dependants and/or a spouse. California has the highest state income tax rate in the country at 13.3%. Information about the Extra Credit Grant Program. North Carolina has three income tax brackets. FREE for simple returns, with discounts available for Tax-Brackets.org users! 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. The primary sources of tax revenue for local governments are property taxes and sales taxes. 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. Changes from 2019 are highlighted in yellow. 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. 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. You can use our free North Carolina income tax calculator to get a good estimate of what your tax liability will be come April. File your North Carolina and Federal tax returns online with TurboTax in minutes. 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. However, the deductions for taxable income range from $7,500 to $15,000, depending on filing status. 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. 2018 North Carolina Tax Tables with 2021 Federal income tax rates, medicare rate, FICA and supporting tax and withholdings calculator. 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. Please let us know so we can fix it! Let us know in a single click, and we'll fix it as soon as possible. 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. For a more detailed estimate that takes these factors into account, click "View Detailed Estimate" (this will will redirect to an external website). 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