North Carolina Tax Calculators.
2025 income tax rates, brackets, and sales tax for North Carolina. Free calculators with North Carolina-specific defaults.Income Tax
North Carolina has a flat income tax of 4.5%, down from 5.25% in recent years. The state has been gradually reducing its rate and plans to eventually reach 3.99%. NC offers a generous standard deduction.
Sales Tax
Groceries (unprepared food) are exempt from state tax. Prescription drugs are exempt.
North Carolina's 4.5% flat rate is below the national average and continues to decrease. Combined with moderate property taxes, NC has become more tax-competitive.
What is North Carolina's income tax rate?
North Carolina has a flat income tax rate of 4.5%. The rate has been declining in recent years and is scheduled to continue decreasing to 3.99%.
What is the sales tax in North Carolina?
North Carolina's state sales tax is 4.75%. With local taxes, the average combined rate is about 6.98%.
Does North Carolina tax retirement income?
Social Security is exempt. Other retirement income (pensions, 401k, IRA) is fully taxable in North Carolina.