North Carolina Tax Overview
North Carolina switched from a progressive income tax to a flat rate in 2014 and has been gradually lowering it, reaching 4.50% with plans to decrease further. The state is a popular destination for retirees due to its moderate climate and tax treatment of retirement income. North Carolina does not tax Social Security benefits.
North Carolina Tax Quick Facts (2026)
| Income Tax | flat (top rate: 4.5%) |
| Sales Tax (State) | 4.75% |
| Property Tax (Avg Effective) | 0.73% |
| Median Household Income | $66,186 |
| Capital | Raleigh |
| Population | 10.7 million |
Frequently Asked Questions About North Carolina Taxes
Does North Carolina have a state income tax?+
Yes, North Carolina has a flat income tax system with a top marginal rate of 4.5%.
What is the property tax rate in North Carolina?+
The average effective property tax rate in North Carolina is approximately 0.73% of assessed home value. On a $300,000 home, that is about $2,190 per year.
What is the sales tax rate in North Carolina?+
The state sales tax rate in North Carolina is 4.75%. Local jurisdictions may add additional sales tax.
What is the median household income in North Carolina?+
The median household income in North Carolina is approximately $66,186 per year.
How does North Carolina's tax burden compare to other states?+
North Carolina's total tax burden depends on income tax, property tax, and sales tax combined. Use the calculator above to compare your specific situation.
Related Calculators
James Whitfield, CPA, MST
James Whitfield is a Certified Public Accountant with a Master of Science in Taxation. He specializes in US federal and state tax calculations and ensures all tax-related tools meet current IRS guidelines. Last updated: April 2026. Uses 2026 tax year data from state revenue departments and IRS publications.