North Carolina moved to a flat income tax beginning with tax year 2014. North Carolina taxpayers are choosing a faster, more convenient way to file their State and Federal individual income tax returns by electronically filing. E-filing your return and filing early can help ensure your refund check gets sent as quickly as possible. NCUI 604: File this application to establish your North Carolina Unemployment Insurance Tax Account. North Carolina income tax is a flat tax, meaning the state charges a consistent rate of 5.499 percent without income tax rates that fall into different tax brackets based on income level. Likewise, you can take an additional dependent exemption for each qualifying dependent (like a child or family member), who you financially support. COVID-19 Updates: N.C. Department of Revenue Offers Relief in Response to COVID-19 Outbreak Important Notice: North Carolina Makes It Easier to Qualify for the Medical and Dental Expense Deduction - Impact on 2019 North Carolina Individual Income Tax Returns Note that the flat 37% rate applies even if an employee has submitted a federal Form W-4 claiming exemption from federal income tax withholding. Both companies produce multiple editions for simple to very complex tax returns, so be sure to carefully compare the features offered by each package. You can learn more about how the North Carolina income tax compares to other states' income taxes by visiting our map of income taxes by state. In addition to marginal tax brackets, one of the major features of the North Carolina income tax is deductions. Our state ranking and income tax figures are based on a family of four (married parents with two children) earning the national median household income of $50,000 per year. However, the deductions for taxable income range from $7,500 to $15,000, depending on filing status. Prior to that, it had a progressive income tax. Note: North Carolina's income tax has a single flat tax rate for all income. The primary sources of tax revenue for local governments are property taxes and sales taxes. As a “married filing jointly” couple in North Carolina, you would be in the 24% tax bracket at … There are -247 days left until Tax Day, on April 16th 2020. California has the highest state income tax rate in the country at 13.3%. North Carolina Personal Income Taxes at a Glance. The North Carolina tax rate decreased from 5.50% last year (2018) to 5.25% this year (2019). Property Tax Rate: $7.63 [The property tax rate shown here is the rate per $1,000 of home value. 3.00% effective for taxable years beginning on or after 1-1-2017. The Federal income tax also has a standard deduction, personal exemptions, and dependant deductions, though they are different amounts than North Carolina's and may have different rules. North Carolina’s income tax is a flat rate of 5.499%. Complete form D-429 to determine the tax credits available for a disability of yours or a family members. North Carolina's income tax brackets were last changed three years prior to 2012 for tax year 2009, and the tax rates were previously changed in 2007. The current values of these deductions for tax year 2020 are as follows: The standard deduction, which North Carolina has, is a deduction that is available by default to all taxpayers who do not instead choose to file an itemized deduction. Before the official 2020 North Carolina income tax rates are released, provisional 2020 tax rates are based on North Carolina's 2019 income tax brackets. eFiling is easier, faster, and safer than filling out paper tax forms. Essentially, it translates to $8,750.00 per year of tax-free income for single North Carolina taxpayers, and $17,500.00 for those filing jointly. If you filled out physical tax return forms, mail your completed North Carolina income tax return to the North Carolina no later then December 31st. Workers who made between $12,750 and $60,000 had a 7 percent tax rate, and workers who made over $60,000 had a 7.75 percent tax rate. Your average tax rate is 21.74% and your marginal tax rate is 35.15%.This marginal tax rate means that your immediate additional income will be taxed at this rate. How does North Carolina rank? The latest available tax rates are for 2020 , and the North Carolina income tax brackets have been changed since 2011. The sales tax in the state ranges from 6.75% to 7.5%, depending on the county. Some states, including North Carolina, increase, but don't double, all or some bracket widths for joint filers (others include GA, MN, NM, ND, OK, RI, VT, and WI). Both North and South Carolina charge a state income tax to most workers. NC’s tax rate of 5.25% across the board is actually the highest of those nine states. The Personal Exemption, which is not supported by the North Carolina income tax, is an additional deduction you can take if you (and not someone else) are primarily responsible for your own living expenses. North Carolina has a flat income tax of 5.25% — All earnings are taxed at the same rate, regardless of total income level On this page: North Carolina Tax Calculator You can save time and money by electronically filing your North Carolina income tax directly with the . income tax, corporate income tax and the sales tax. Income tax deductions are expenses that can be deducted from your gross pre-tax income. Once you've filed your tax return, all you have to do is wait for your refund to arrive. The chart below breaks down the North Carolina tax brackets using this model: eFiling is easier, faster, and safer than filling out paper tax forms. Unlike the Federal Income Tax, North Carolina's state income tax does not provide couples filing jointly with expanded income tax brackets. This means that these brackets applied to all income earned in 2007, and the tax return that uses these tax rates was due in April 2008. The Federal Income Tax, in contrast to the North Carolina income tax, has multiple tax brackets with varied bracket width for single or joint filers. Statistical Abstract 2013 - Appendix - Tax Year 2012 Individual Income Tax Statistics Statistical Abstract 2013 - Part I. 4.00% effective for taxable years beginning on or after 1-1-2016. Download .CSV file of NC income tax brackets, Download or print North Carolina income tax forms. D-400 can be eFiled, or a paper copy can be filed via mail. Taxes And North Carolina Gross Domestic Product Statistical Abstract 2013 - Part II. That rate applies to taxable income, which is income minus all qualifying deductions and exemptions, as well as any contributions to a retirement plan like a 401(k) or an IRA. If you failed to pay or underpaid your estimated taxes for the past tax year, you must file form D-422 to calculate any interest or penalties due with your income tax return. View Sitemap. Disclaimer: While we do our best to keep this list of North Carolina income tax rates up to date and complete, we cannot be held liable for errors or omissions. You can find all of North Carolina's 2020 income tax forms on the, Once you've filled out your North Carolina income tax return, you have several options for filing and paying your income tax. States often adjust their tax brackets on a yearly basis, so make sure to check back later for North Carolina's updated tax year 2021 tax brackets! North Carolina has a flat income tax rate which applies to both single and joint filers. The NC Income Tax is the Highest “Flat Tax” in The Country North Carolina is one of nine states that imposes a “flat” income tax. Top individual income tax rate in North Carolina is 5.25% in 2020. Below, we have highlighted a number of tax rates, ranks, and measures detailing North Carolina’s income tax, business tax, sales tax, and property tax … While most in-depth tax software charges a fee, there are several free options available through the states, and simple versions are also offered free of charge by most tax software companies. This site is a free public service not affiliated with the IRS or any governmental organization. The current year 2019 North Carolina income tax rate of 5.25% continues the downward trend in rates from a high of 5.8% in 2014. The average effective property tax rate in North Carolina is 0.86%, 21st-lowest in the country. North Carolina's income tax rates were last changed two years ago for tax year 2018, and the tax brackets were previously changed in 2012. North Carolina Income Tax Brackets; Single Tax Brackets; North Carolina — Single Tax Brackets TY 2019 - 2020. If your state tax witholdings are greater then the amount of income tax you owe the state of North Carolina, you will receive an income tax refund check from the government to make up the difference. For comparison purposes, however, your North Carolina tax bracket is the tax bracket in which your last earned dollar in any given tax period falls. The North Carolina tax calculator is designed to provide a simple illlustration of the state income tax due in North Carolina, to view a comprehensive tax illustration which includes federal tax, medicare, state tax, standard/itemised deductions (and more), please use the main 2020/21 tax reform calculator. Tax Bracket Tax Rate ; $0.00+ 5.25% : eFile your North Carolina tax return now . North Carolina is among the flat tax states. The two most popular tax software packages are H&R Block At Home, sold by the H&R Block tax preparation company, and TurboTax Federal & State, sold by the Intuit software company. For all of the tax forms we provide, visit our North Carolina tax forms library or the 's tax forms page. This document is in PDF format. While we take all precautions to ensure that the data on this site is correct and up-to-date, we cannot be held liable for the accuracy of the tax data we present. Using deductions is an excellent way to reduce your North Carolina income tax and maximize your refund, so be sure to research deductions that you mey be able to claim on your Federal and North Carolina tax returns. North Carolina income is taxed at a constant rate of 5.25%. Is any of our data outdated or broken? Help us keep Tax-Brackets.org up-to-date! North Carolina has a flat corporate income tax rate of 6.900% of gross income. Note: We don't currently have North Carolina's income tax brackets for tax year 2018. Outlook for the 2020 North Carolina income tax rate is … Keep in mind that this estimator assumes all income is from wages, assumes the standard deduction, and does not account for tax credits. Passed as part of the budget approved by the Republican-controlled North Carolina General Assembly, the state of North Carolina recently announced the corporate tax rate would be just 2.5% beginning January 1, 2019. The North Carolina corporate tax rate was at 4% in 2017 and dropped to 3% in 2018, making the new 2.5% rate unprecedented. Benefits of e-Filing your North Carolina tax return include instant submission, error checking, and faster refund response times. If you want to check the status of your North Carolina tax refund, you can visit the North Carolina Income Tax Refund page. North Carolina Income Taxes. 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