North Carolina utilizes a flat-rate income tax system, which makes it simpler than many other states with progressive brackets. For the 2024 tax year, the state income tax rate is 4.5%. This rate applies to your North Carolina taxable income after your standard deduction.
Key Factors in Your NC Paycheck:
Federal Income Tax: Calculated based on the IRS progressive tax brackets (10% to 37%).
FICA Taxes: A combined 7.65% for Social Security (6.2% up to the wage base) and Medicare (1.45%).
NC Standard Deduction: For 2024, this is $12,750 for single filers and $25,500 for married couples filing jointly.
NC Flat Tax: Every dollar of taxable income in North Carolina is taxed at the same 4.5% rate.
Example Calculation:
If you earn $60,000 annually as a single filer in Raleigh, NC:
Gross Period Pay (Bi-weekly): $2,307.69
FICA Withholding: ~$176.54
Federal Tax Withholding: ~$215.00 (varies by W-4)
NC State Tax: ~$88.00 (4.5% after state deduction)
Estimated Take-Home: ~$1,828.15
*Note: This calculator provides estimates based on standard 2024 tax tables and North Carolina flat rates. Actual withholding depends on your specific IRS Form W-4 and NC-4 selections.