1. What is the NC Income Tax Calculator?

This calculator estimates your total tax burden in North Carolina, including federal income tax, North Carolina state tax (4.75% flat rate), and FICA taxes (Social Security and Medicare).

2. How Does the Calculator Work?

The calculator uses three components:

Where:

• Federal Tax — Calculated using IRS tax brackets based on filing status
• North Carolina State Tax — Flat 4.75% of income
• FICA — 7.65% (6.2% Social Security + 1.45% Medicare)

3. Understanding North Carolina Taxes

Details: North Carolina has a flat income tax rate of 4.75% as of 2023. This is in addition to federal income taxes and FICA taxes that apply nationwide.

4. Using the Calculator

Tips: Enter your gross annual income and select your filing status. The calculator will estimate your total tax burden and net income after taxes.

5. Frequently Asked Questions (FAQ)

Q1: Why is North Carolina's tax rate flat?
A: North Carolina switched to a flat tax system in 2014, replacing the previous progressive tax structure.

Q2: Are there deductions available?
A: This calculator provides estimates before deductions. Actual taxes may vary based on deductions and credits.

Q3: Does this include local taxes?
A: No, North Carolina doesn't have local income taxes, though some counties may have other local taxes.

Q4: What about self-employment tax?
A: Self-employed individuals pay additional SECA taxes (similar to FICA) which aren't included here.

Q5: How accurate is this calculator?
A: It provides estimates based on standard tax rates. For precise calculations, consult a tax professional.