North Carolina has a flat individual income tax rate of 4.25%. This rate applies to all individual taxpayers, regardless of income level.
North Carolina State Tax Rates
The 4.25% individual income tax rate is part of a series of gradual reductions enacted by the state legislature.
| Tax Type | Rates | Notes |
|---|---|---|
| Individual Income Tax | 4.25% | This is a flat rate on all taxable income. The rate is scheduled to decrease further to 3.99% for the 2026 tax year and thereafter. |
| Corporate Income Tax | 2.25% | This is also a flat rate and is part of a plan to phase out the corporate tax entirely by 2030. |
| State Sales Tax | 4.75% | Counties and municipalities may add a local sales tax ranging from 2% to 2.75%, making the combined rate typically between 6.75% and 7.5%. |
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