Calculate your take home pay after federal & North Carolina taxes
Last updated on Jul 19 2021
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North Carolina state income tax
North Carolina state has a population of over 10 million (2019) and has a very diverse economy with many different industry sectors. The state also has the oldest State University in the United States, The University of North Carolina. The median household income is $52,752 (2017).
Brief summary:
- the income tax is a flat rate of 5.25%
- no state-level payroll tax
- has standard deduction
- has Earned Income Tax Credit (EITC) and Child Tax Credit (CTC)
North Carolina fiscal year starts from July 01 the year before to June 30 the current year. So the fiscal year 2021 will start from July 01 2020 to June 30 2021.
Calculating your North Carolina state income tax is similar to the steps we listed on our Federal paycheck calculator:
- figure out your filing status
- work out your adjusted gross income [Total annual income – Adjustments = Adjusted gross income]
- calculate your taxable income [Adjusted gross income – (Post-tax deductions + Exemptions) = Taxable income]
- understand your tax liability [Taxable income Γ Tax rate = Tax liability]
- determine whether your tax liability is more than your tax credits and withheld
- Tax liability – (Credits + Withheld) = What you owe or
- (Credits + Withheld) – Tax liability = Tax refunds
State payroll tax
There is no state-level payroll tax.
Income tax brackets
| Fiscal year | Filing status | Taxable income | Rate |
|---|---|---|---|
| 2021 2020 |
Single Married, Filing Jointly or Widow(er) Married, Filing Separately Head of Household |
Any | 5.25% |
Deductions
| Fiscal year | Filing status | Standard deduction amount |
|---|---|---|
| 2021 | Single Married, Filing Separately |
$10,750 |
| Married, Filing Jointly | $21,500 | |
| Head of Household | $16,125 | |
| 2020 | Single Married, Filing Separately |
$10,000 |
| Married, Filing Jointly | $20,000 | |
| Head of Household | $15,000 |
Exemptions
There is no state-level exemptions.
Earned Income Tax Credit (EITC)
| Fiscal year | No. of child | Maximum credit amount | Percentage of Federal EITC | Maximum income |
|---|---|---|---|---|
| 2020 | 0 | $243 | 85% | $30,000 |
| 1 | $1,626 | |||
| 2 | $2,691 | |||
| 3 or more | $3,027 |
Child Tax Credit (CTC)
| Fiscal year | Filing status | Amount per dependent | Refundable | Comment |
|---|---|---|---|---|
| 2021 2020 |
Single Married, Filing Separately Head of Household |
$100 per child | No | Only if federal adjusted gross income is below $80,000 for head of household $60,000 for single $50,000 for married filing separately |
| Married, Filing Jointly | Combined adjusted gross income up to $40,000: $125/qualifying child Combined adjusted gross income between $40,000 and $100,000: $100/qualifying child |
Only if federal adjusted gross income is below $100,000 for married filing jointly |
FAQs
What taxes do North Carolinians pay?
North Carlinians pay a flat income tax rate of 5.25% regardingless of filing status.
How much do you make after taxes in North Carolina?
A single filer earning $53,000 per year will take home $42,072.37 after tax.
A married couple with a combined annual income of $106,000 will take home $84,144.75.