North Carolina Income Tax
North Carolina has a flat income tax with a rate of 4.5%. All taxable income is taxed at the same rate regardless of how much you earn.
North Carolina Sales Tax
The state sales tax rate in North Carolina is 4.75%. With an average local sales tax of 2.22%, the combined average sales tax rate is 6.97%.
North Carolina Property Tax
The effective property tax rate in North Carolina is 0.8%. With a median home value of $260,900, the median annual property tax bill is $1,862 ($155/month).
Corporate & Business Taxes
The corporate tax rate in North Carolina is 2.5%.
Other Taxes in North Carolina
| Tax Type | Rate / Amount |
|---|---|
| Gas Excise Tax | $0.41/gallon |
| Cigarette Tax | $0.45/pack |
| Estate Tax | No |
| Inheritance Tax | No |
Key Facts
Flat income tax. Corporate tax rate is one of the lowest in the nation.
Compare to Other States
See how salaries compare on our average salary in North Carolina page. Thinking about starting a business? Check our LLC guide for North Carolina. See the current minimum wage in North Carolina.
Financial Calculators
Plan your finances in North Carolina with our free tools:
- Paycheck Calculator — estimate take-home pay after taxes
- Salary Calculator — convert hourly to annual pay
- Mortgage Calculator — estimate monthly home payments
- Home Affordability Calculator — see how property taxes affect what you can afford