North Carolina Paycheck Calculator

Quick TL;DR

• State income tax: Flat 4.25% in 2025; 3.99% in 2026. No local income tax.
• Local tax note: NC has no city/county income tax; locals apply to sales tax (most counties add 2.00%–2.75%). State rate is 4.75%; average combined ~7.0%. Groceries generally taxed at 2% local only.
• Average take-home (Single, monthly, standard withholding, typical benefits not included):
  • $50k salary: ≈ $3,390/mo
  • $100k salary: ≈ $6,270/mo

NC (North Carolina) Paycheck Calculator (2025–2026)

This guide walks employees, gig workers, and small business owners through what actually lands in your bank account in North Carolina for tax years 2025 and 2026. It covers federal vs. state income tax, FICA, local taxes, withholding forms, and a clear table of monthly take-home at common salary points.

How taxes your paycheck

1) Federal income tax (progressive brackets)

The federal government taxes your taxable income in layers (brackets). You subtract the standard deduction (unless you itemize) and then apply the 7-bracket system (10%–37%). For 2025, the standard deduction is $15,750 for single filers; for 2026, it rises to $16,100 (married filing jointly: $31,500 → $32,200; head of household: $23,625 → $24,150).

Note: Federal bracket thresholds adjust annually for inflation; the rates remain the same (10%, 12%, 22%, 24%, 32%, 35%, 37%).

2) FICA (Social Security & Medicare)

• Social Security (OASDI): 6.2% of wages up to the annual wage base. The wage base is $176,100 in 2025 and $184,500 in 2026.
• Medicare (HI): 1.45% of all wages (no cap), plus an Additional 0.9% on wages over $200,000 (employer must start withholding once your year-to-date pay passes $200k).

3) North Carolina income tax (flat)

North Carolina uses a flat state income tax:

• 2025: 4.25%
• 2026: 3.99%
  NC also offers a state standard deduction (separate from federal): $12,750 (Single), $25,500 (MFJ), $19,125 (Head of Household)—amounts used in NC withholding tables and return calculations.

Common state adjustments/benefits: NC’s Child Deduction reduces state taxable income based on AGI and filing status (not a credit). Many households with qualifying children see lower NC tax due to this deduction. ncdor.gov

4) Local/city add-ons

NC does not impose local income taxes. Local taxes primarily appear in sales and use tax, not on your paycheck. Most counties add 2.00%–2.75% to the 4.75% state rate (see Sales tax snapshot).

5) Federal credits that affect net pay

Although credits are reconciled on your annual return (not per-paycheck), they influence how you set withholding and your final effective tax:

• Child Tax Credit (2025): up to $2,200 per qualifying child; partial refundability rules apply; income thresholds and phaseouts apply. Amounts adjust for 2026 with inflation.
• Earned Income Tax Credit (EITC): income-based credit for workers; can significantly reduce final tax owed.

Take-home pay examples

Assumptions for the table below:

• Filing Single, standard deduction taken (no itemizing).
• 2025 federal brackets and standard deduction.
• NC 2025 flat rate (4.25%) and NC state standard deduction.
• Employee FICA at 7.65% (6.2% Social Security up to wage base + 1.45% Medicare); at these salaries, the Additional Medicare surtax does not apply.
• Pay frequency: Monthly (we display annual and monthly net).
• No pre-tax benefits (401(k), HSA, Section 125), no dependent credits, and no local income tax (NC has none).

Your numbers will vary with benefits, bonuses, dependents/credits, and W-4/NC-4 choices.

Estimated single-filer results (2025 rules)

These calculations layer federal tax after the federal standard deduction, add FICA, and add NC income tax after the NC standard deduction. (Social Security wage base is not reached at these incomes in 2025.)

Withholding & W-4/W-4-equivalent tips

Federal (Form W-4)

• Step 1: Select filing status correctly.
• Step 3: Claim dependents (if eligible) to reduce federal withholding.
• Step 4(a)/(b): Enter other income or deductions if you expect them (e.g., itemized deductions, high medical, SALT, mortgage interest).
• Step 4(c): Add an extra flat amount per paycheck if you often owe at filing.
• Update W-4 after major life events (marriage, new child, 2nd job) or if you frequently owe/over-withhold.

North Carolina (Form NC-4 / NC-4 EZ)

• Complete NC-4 (or NC-4 EZ) for state allowances and any additional state withholding. If you don’t submit NC-4, your employer must withhold as Single with zero allowances by default.
• Use NC-4 worksheets to reflect NC standard deduction and NC child deduction, which directly reduce state withholding. ncdor.gov
• Re-file NC-4 if your state allowances change (e.g., child turns 17, income change affecting child deduction bracket).

Avoiding under-withholding (practical)

• Two-income households / side gigs: Consider an extra fixed amount on either W-4 Step 4(c) or NC-4 “additional withholding” to cover untaxed gig income (which is still subject to income tax and SE tax).
• Bonuses / supplemental pay: Confirm how your employer withholds on supplemental wages; adjust a temporary extra amount on W-4/NC-4 the pay period you get a big bonus if needed.
• Crossing $200k: If your year-to-date gross will exceed $200,000, your employer must withhold the 0.9% Additional Medicare Tax on the excess. This can make December paychecks smaller; plan ahead. IRS

Minimum wage & overtime basics (2025–2026)

• Statewide minimum wage: $7.25/hour (NC follows the federal minimum). Some special industries have unique thresholds; most employees must be paid at least $7.25.
• Overtime: Generally 1.5× the regular rate for hours over 40 in a workweek under FLSA/NC law (limited exceptions). Seasonal amusement/recreation establishments follow specialized thresholds.

Sales tax snapshot

• State rate: 4.75%.
• Local add-ons: Most counties add 2.00%–2.75%. Average combined statewide sits near 7.0%; some areas are 6.75% and others up to 7.50%.
• Groceries: Most grocery food for home consumption is exempt from the 4.75% state portion but subject to a 2% local rate. Prepared food, soft drinks, candy, and dietary supplements are taxed at the full combined rate.
• Prescription drugs: Generally exempt; many OTC items are taxable. Check specific items when budgeting.

Employer corner (brief)

For NC employers and payroll teams.

• SUTA/Unemployment Insurance (UI):
  • Taxable wage base (2025): $32,600
  • New-employer (beginning) rate: 1.00%
  • Rate range: 0.06% to 5.76% (experience-rated)
  • Base rate & formulas are published annually; log into NCSUITS to view your assignment.
• Filing cadence: UI wage reports and contributions are generally quarterly via NCSUITS; verify due dates and rate notices posted by NC DES each December for the next year. des.nc.gov
• State disability / paid family leave: NC does not mandate a statewide SDI/PFL program as of 2025–2026; employers may offer benefits voluntarily.
• State withholding onboarding: Collect Form NC-BR (business registration) at setup and Form NC-4 / NC-4 EZ from each employee; withhold and remit per NCDOR wage-bracket/percentage tables. ncdor.gov

Practical notes to improve your take-home

• Use pre-tax benefits: Contributing to 401(k)/403(b), HSA/FSA, or commuter benefits reduces federal and state taxable wages (HSA/Section 125 items often reduce Medicare/Social Security as well, depending on plan design).
• Adjust for variable income: If you freelance or drive rideshare in addition to W-2 work, set aside cash for SE tax and consider a quarterly estimated schedule to avoid surprises.
• Track the Social Security cap: High earners see a net-pay “bump” once they pass the OASDI wage base ($176,100 for 2025; $184,500 for 2026) because the 6.2% employee share stops for the rest of the year—Medicare continues.
• Year-end planning: If you’re near the $200k Additional Medicare threshold, time bonuses and RSUs with your tax pro to manage withholdings. IRS

Worked example: how we built the estimates

For a $60,000 single-filer in 2025 with no pre-tax deductions:

1. Federal taxable income ≈ $60,000 − $15,750 = $44,250 → taxed progressively across 10% and 12% brackets.
2. FICA = 6.2% of wages (below the 2025 SS cap) + 1.45% Medicare.
3. NC taxable income ≈ $60,000 − $12,750 = $47,250 → flat 4.25%.

Combine those three to get the estimated annual tax and divide the remainder by 12 for a monthly net. This is the approach used in the table.

Frequently asked quick questions

Does NC tax bonuses?
Yes. Employers follow federal supplemental wage rules for withholding, then NC withholding applies normally; you can add a one-time extra withholding amount via W-4/NC-4 to offset.

Do counties add “income” tax?
No. Local add-ons are sales tax, not payroll tax.

Will my 2026 paychecks look different?
Possibly. The federal standard deduction and bracket thresholds rise with inflation and the NC flat rate is scheduled down to 3.99% for tax years after 2025 (subject to future legislative changes).

Final checklist before payday

• Submit an accurate W-4 and NC-4; revisit after life changes. IRS
• Enroll in pre-tax benefits if offered to reduce taxable wages.
• If you have side income, add a small extra withholding per paycheck or make quarterly estimates.
• For high earners, know the SS wage base and $200k Additional Medicare trigger.

Important disclaimer

This is a general educational guide. Actual take-home pay varies with benefits, multiple jobs, itemized deductions, credits, and employer payroll settings. Confirm details with your payroll department or a qualified tax professional, especially if your situation includes complex elements like RSUs, multi-state work, large bonuses, or self-employment income.