North Carolina State Taxes
Quick Tax Facts
Income Tax: 4.75%
State Sales Tax: 4.75%
Median Property Tax: $1,209
Overview
North Carolina offers both big-city living and small-town charm. If you love the outdoors, you’ll also have plenty of spectacular views from the pristine beaches to the Blue Ridge Mountains. When it comes to taxes, however, it’s a bit of a mixed bag. Sales taxes are on par with the rest of the country and property taxes are fairly modest. Although the income tax rate was recently lowered, it can still take a good chunk out of many taxpayers’ wallets.
North Carolina Income Tax
North Carolina has a flat income tax rate of 4.75% (2023). That is a decrease from the 4.99% flat rate levied for the 2022 tax year.
Who Must File?
The following individuals must file a North Carolina income tax return:
- Every resident whose gross income for the tax year exceeds the amount shown in the filing requirements chart below.
- Every part-year resident who received income while a resident of North Carolina or who received income while a non-resident that was (1) attributable to the ownership interest of any interest in real or tangible personal property in the state, or (2) derived from a business, trade, profession, or occupation carried on in North Carolina, or (3) derived from gambling activities in the state and whose gross total income for the tax year exceeds the amounts shown in the chart below.
| 2023 Filing Requirements |
|---|
| Filing Status | Must file if federal gross income exceeds: |
|---|---|
| Single | $12,750 |
| Married Filing Jointly | $25,500 |
Married Filing Separately
| |
| $12,750 | |
| $0 | |
| Head of Household | $19,125 |
| Qualifying Surviving Spouse | $25,500 |
| Nonresident Alien | $0 |
Non-residents who receive income for the tax year from North Carolina sources (same as those mentioned for part-year residents) must also file.
North Carolina Sales Tax
North Carolina has a state sales tax rate of 4.75%. Local governments may also impose an additional sales tax of up to 2.75%. Most combined sales tax rates average 7%.
North Carolina Property Taxes
North Carolina has some of the lowest median property tax rates in the country. County tax rates range between 0.318% and 0.99% of a property’s assessed value.
The median property tax bill in North Carolina is approximately $1,209 (based on a median home value of $155,500). Orange County has the highest property tax at an average of $2,829. The lowest amount is $494 in Montgomery County.
| Highest | $2829 |
|---|---|
| Median | $1209 |
| Lowest | $494 |
Yearly Cost Per Resident
North Carolina Tax Holidays
North Carolina previously held a Back-to-School Tax-Free Weekend but this program ended in 2013 when the state lowered the personal and corporate income tax rates.
North Carolina Tax Resources
If you need assistance preparing your North Carolina state taxes, you can speak with a tax professional from Tax Defense Network by calling 855-476-6920.
You can also visit the North Carolina Department of Revenue website for additional resources.
- Payment Options
- Where’s My Refund?
- Individual Income Tax Forms & Instructions
- Taxpayer Assistance: 877-252-3052
