North Carolina Income Tax Rate 2025
North Carolina has a flat income tax rate of 4.5% on all taxable income, regardless of how much you earn. The state transitioned from a progressive system to a flat tax in 2014 and has been gradually lowering the rate since.
Tax Type
Flat Rate
Income Tax Rate
4.5%
Tax Brackets
1 (flat)
How It Works
With a flat tax, your North Carolina state income tax is simply 4.5% of your taxable income. North Carolina uses federal adjusted gross income as the starting point and provides a standard deduction of $12,750 for single filers. The state does not tax Social Security benefits.