North Carolina individual income tax
North Carolina imposes a flat-rate individual income tax of 4.75% on both residents and nonresidents.
April 18
Return due in 2023
4.75%
Flat tax rate
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Pay income tax online
Visit the official state government’s website to pay individual income tax online.
Visit NCDOR
What is North Carolina income tax?
Individual income tax
Individual income tax is a type of direct tax levied by North Carolina on individuals that meet the taxable criteria.
Taxable incomes
North Carolina taxes incomes from wages, dividends, interests and capital gains.
Tax brackets
North Carolina has a flat rate tax of 4.75%.
Standard deduction
Standard deduction in North Carolina is $12,750 for single filers, $25,500 for joint filers and $19,125 for head of households.
Personal exemption
There is no personal exemption in North Carolina.
2022 tax rates
The following is the list of income tax rates for the tax year of 2022
| North Carolina taxable income | Tax rate |
|---|---|
| Flat tax rate | 4.75% |
Individual income tax
The State of North Carolina requires you to pay taxes if you are a resident (regardless of the whether they were earned within the state or not) or a non-resident that earns income from North Carolina
Types of taxable incomes
The income types on which tax is levied are:
In North Carolina, all types of income are generally subject to personal income tax unless they are specifically exempt by state law. This includes, but is not limited to, wages and salary, dividends, capital gains, royalties, and other types of income.
File return
To file a tax return in North Carolina, taxpayers must complete and submit a tax return form. The tax return form requires taxpayers to report their taxable income and any credits or deductions they are eligible to claim. Taxpayers must also calculate their tax liability and pay any taxes owed by the due date.
North Carolina provides a 6-months extension in filing taxes, due by October 16,2023, if taxes have already been paid, by filing form D-410
Due
quarterly or annually
Pay taxes
Taxes in North Carolina are due by 18 April, 2023. Go to the official North Carolina Department of Revenue website.
Estimated taxes must be paid quarterly if tax liability is more than $1000 or if your income isn't withheld.
Estimated taxes are to be made quarterly in instalments by the 15th of April, June, September, and January.
Type of tax
flat tax
Due
quarterly or annually
Deductions
Tax deductions are a reduction in the amount of income that is subject to taxation. It allows taxpayers to lower the amount of taxable income they have, which in turn reduces the amount of tax they owe. Tax deductions are available for a wide range of expenses, such as charitable donations, mortgage interest, medical expenses, and business expenses.
For the tax year 2022, North Carolina has a standard deduction of $12,750 for single filers, $25,500 for joint filers and $19,125 for head of households.
Credits
A tax credit allows taxpayers to reduce the amount of taxes they are required to pay. This is different from a tax deduction, which reduces the amount of income that is subject to taxation. Tax credits are applied directly to the tax liability, while deductions are applied to the taxable income.
Exclusions
Tax exclusions are an amount of money or income that is not subject to taxation. This means that taxpayers do not have to pay taxes on this income.
Residency
Residency in North Carolina refers to an individual's permanent home or place of residence in the state.
North Carolina resident
A North Carolina resident is someone who is domiciled in North Carolina, or who maintains a permanent place of residence in the state for more than 183 days in a year.
You are required to pay tax on all the income, regardless of where it's sourced, if you are a resident.
North Carolina part-year resident
A North Carolina Part-Year Resident is someone who moved into or out of the state during the tax year.
Income earned while the individual was a resident of North Carolina is subject to state taxes.
Income earned from North Carolina sources are also taxable.
North Carolina non-resident
A North Carolina Nonresident is someone who does not have a permanent residence in the state.
Nonresidents who receive income from North Carolina sources are required to pay North Carolina taxes. This includes income from North Carolina properties and personal services performed in the state.
Frequently asked questions
Business entities in North Carolina
There are several business entities in North Carolina
North Carolina LLC
Page sponsorWhy we like StartGlobal?
My genuine thoughts
Willy Justin
Founder, Statepedia
StartGlobal: Legal + Taxes + Bookkeeping for solopreneurs
Product
For small businesses, managing taxes, accounting and everything legal is just a pain. Nobody wants to do it, but they have to. Instead of working with CPAs, attorneys and others separately, Start brings all of them under a single subscription. It’s just smooth.
Team
I know the team behind StartGlobal very well. It’s a very hardworking group of individuals who are genuinely passionate about small businesses. They are backed by successful founders like Balaji Srinivasan, Biz Stone(Twitter) and others.
Price
Getting a CPA or attorney is a matter of thousands of dollars. It’s just unfair to pay so much when you’re a small business. Start has a single subscription that covers it all. It is a definite money saver.
$599 one-time