North Carolina

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North Carolina State Income TaxNorth Carolina State Income Tax Rates Filing and Forms

If you are a full time resident of North Carolina and you made over $5,500 as a single tax payer ($6,250 if you’re 65 or older) then you will be required to file a state income tax return. If you’re a married filing jointly and you made over $11,000 (or $11,600 if one spouse is over 65, and $12,200 if both of you are over 65) then you will be required to file a state income tax return. If you’re married filing separately then you’ll have to file if you made over $2,500. If you were a part year resident or non-resident and you accumulated income from a source in North Carolina then you will have to file a state income tax return to report that income.

North Carolina implements both income and sales tax on its citizens and the income tax rate brackets look like this:

Single Filers
$0 – $12,750 – 6%
$12,750 – $60,000 – 7%
$60,000+ – 7.75%

Married Filing Jointly
$0 – $21,250 – 6%
$21,250 – $100,000 – 7%
$100,000+ – 7.75%

The standard deduction for single filers is $3,000. For those married and filing jointly the standard deduction is $6,000 and if you or your spouse are older than 65 then you can claim and addition deduction. Singles filers may take a personal exemption of $1,200 and those who are married filing jointly may take a $2,400 exemption.

The state of North Carolina implements a 4.750% sales tax on most goods besides prescription drugs and medical equipment.  Like most states, counties and cities have their own right to impose their own sales tax which in North Carolina comes out to an additional 2% or 3%. The state also has a fairly significant gasoline excise tax of 39.2 cents per gallon which is the same rate for diesel fuel. The cigarette excise tax in North Carolina is a moderate 45 cents per pack. All types of property are subject to North Carolina taxes and an estate tax law was signed into action in June of 2011 and consequently applies to the estates of decedents who died on or after January 1st 2011.


Like most states, the state of North Carolina encourages you to e-file your tax return in order save time and money and reduce the amount of paper typically wasted in the process. Using this method will also ensure that you file without mistakes and get the most out of your taxes.

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