Home
Back
North Carolina State Tax Formula:
| From: | To: |
The North Carolina State Tax Calculator estimates state income tax withholding for paychecks using North Carolina's flat tax rate of 4.75% for 2025 with allowance adjustments. This helps employees and employers accurately calculate state tax obligations.
The calculator uses the North Carolina state tax formula:
Where:
Explanation: The calculation applies North Carolina's flat income tax rate to gross pay and subtracts applicable allowances to determine the final state tax amount.
Details: Accurate state tax calculation ensures proper withholding for North Carolina residents, helps with budgeting, and prevents underpayment penalties or large tax refunds at year-end.
Tips: Enter gross pay in USD, allowances in USD. Both values must be non-negative numbers. The result shows the calculated state tax amount in USD.
Q1: What is North Carolina's state tax rate for 2025?
A: North Carolina uses a flat state income tax rate of 4.75% for the 2025 tax year.
Q2: What are tax allowances?
A: Allowances are deductions or exemptions that reduce your taxable income, such as personal exemptions, dependents, or other tax credits.
Q3: Is this calculator for individual or business use?
A: This calculator is designed for both individual employees checking their withholdings and employers calculating payroll taxes.
Q4: Are there other deductions not included here?
A: Yes, this calculator only covers state income tax. Federal taxes, Social Security, Medicare, and local taxes are separate calculations.
Q5: How often should I recalculate my withholdings?
A: Recalculate whenever your income changes significantly, you have major life events, or at least annually to ensure accurate withholding.