Easily estimate take home pay after income tax so you can have an idea of what to possibly expect when planning your budget
Income Before Tax
Take Home Pay
Average Tax Rate
$ = US Dollar
Income Before Tax
Federal Income Tax
State Income Tax
State Tax Credits
State Disability Insurance
State Paid Family and Medical Leave (PFML)
State Unemployment Insurance
State Worker Comp
State Transit Tax
Mental Health Services Tax
Local Income Tax
Take Home Pay
Average Tax Rate
Table of Contents
Enter your employment income into the paycheck calculator above to estimate how taxes in North Carolina, USA may affect your finances. You'll then get your estimated take home pay, an estimated breakdown of your potential tax liability, and a quick summary down here so you can have a better idea of what to possibly expect when planning your budget.
This paycheck calculator also works as an income tax calculator for North Carolina, as it shows you how much income tax you have to pay based on your salary and personal details.
To learn more about North Carolina, its income tax, and tax brackets, so that you can get a deeper understanding of how your budget and finances may be affected, scroll down to the detail section below!
Frequently Asked Questions
What is the income tax rate in North Carolina?
The state income tax rate in North Carolina is under 5% while federal income tax rates range from 10% to 37% depending on your income. This paycheck calculator can help estimate your take home pay and your average income tax rate.
How many income tax brackets are there in North Carolina?
The state income tax system in North Carolina only has a single tax bracket. However, there are multiple tax brackets for federal income tax. For more details, check out our detail section.
How Your North Carolina Paycheck Works
Your paycheck from a job in North Carolina reflects your gross income (the amount you earn before any withholdings) minus various taxes and contributions.
One of the taxes that will be withheld from your paycheck is the state income tax, which in North Carolina, is a flat rate of 4.99% for all taxpayers regardless of their taxable income or filing status. This means that even if your salary changes, you will still pay the same percentage of your income to the state.
In order for your employer to determine how much state income tax to withhold from your paycheck, you will need to fill out Form NC-4, Employee’s Withholding Allowance Certificate. This form allows you to claim allowances based on your personal and financial situation. For example, it will ask about your marital status, among other things. The more allowances you claim, the less tax will be withheld from your paycheck.
As for local income taxes, North Carolina doesn't have any, so you don’t have to worry about paying additional taxes to your city or county.
Another tax that will be withheld from your paycheck is the federal income tax, which as the name suggests, is paid to the federal government via the IRS. In contrast to North Carolina state tax, federal income tax is a progressive one where different portions of your income are taxed at different rates.
Just like with state tax, your employer will also need you to fill out a form in order to figure out how much to withhold for federal taxes. This time, the form is called the W-4. If you have things like additional income, you should note those down as well. Be sure to update the form whenever your life circumstances change so that your withholding amounts are accurately revised.
In addition to state and federal income taxes, you will also have to pay Social Security and Medicare taxes, which are also known as the FICA taxes. These are federal programs that provide benefits for many including retirees, disabled people, and their dependents. Social Security tax is 6.2% of your wages up to a certain max ($147,000 for 2022), and Medicare tax is 1.45% of your wages with no limit. Your employer will match these amounts and pay them on your behalf. High earners will also see a 0.9% Medicare surtax.
Another item that may affect your North Carolina paycheck is health insurance. If you enroll in a health insurance plan through your employer, you may have to pay a portion of the premium as a pre-tax withholding from your paycheck. The amount you pay will depend on the type of plan you choose and whether you cover any dependents.
You may have additional pre-tax contributions like ones to retirement plans such as 401(k) or 403(b), flexible spending accounts (FSAs), health savings accounts (HSAs), or more. Since these are pre-tax, they reduce your taxable income for federal and state purposes, which means you will pay less in taxes.
Post-tax withholdings are amounts that are taken out of your net income after taxes have been withheld. They include contributions to Roth retirement plans or other voluntary items. These do not affect your taxable income or taxes, but they reduce your take-home pay.
At the end of the year, in addition to filing a federal tax return, you will also need to file a state income tax return specific to North Carolina using Form D-400, Individual Income Tax Return. This form allows you to report your income and deductions for the year and calculate your tax liability or refund.
When filing, you'll see that a state standard deduction exists and is available for those that qualify for a federal standard deduction. The amount varies based on your filing status.
More From Investomatica:
For sales tax, please visit our North Carolina Sales Tax Rates and Calculator page.
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- The content shown on this page is strictly for educational purposes only. It does not represent advice nor is it a substitute for a professional advisor.
- Estimated results are just estimates. They are not a guarantee of future results.
- Tax situations vary widely and calculations can get very complex. This paycheck calculator only provides a rough estimate according to the most common scenarios for standard employment income that comes from an employer. If you are self-employed, your taxes might differ.
- There may be additional deductions, credits, exemptions, allowances, reliefs, etc depending on many factors. Some factors are about your family such as the number of dependents, children, relatives, parents, etc. Other factors may include mortgage payments, property depreciation, charitible donations, additional voluntary retirement contributions, etc. Whether or not you are handicapped and/or disabled may also sometimes be an additional factor.
- Depending on region and jurisdiction, salary bonuses may be treated and taxed differently from standard salary.
- Calculators from other sites may show slightly different numbers due to different deductions/credits being included or they are based on data from a different year.
- Generally, we review changes once a year since tax codes usually change once a year. If you notice a major miscalculation or error with our paycheck calculator (most likely caused by a typo somewhere), feel free to direct message us on twitter and let us know. However, if you have specific questions about your own personal situation, please consult a licensed tax professional.
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