1. What is the North Carolina Paycheck Calculator?

This calculator helps estimate your net pay (take-home pay) after deducting federal tax, North Carolina state tax (4.75% flat rate), and FICA contributions from your gross pay.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Gross Pay — Your total earnings before any deductions
• Federal Tax — Amount withheld for federal income tax
• North Carolina State Tax — Flat 4.75% of gross pay
• FICA — Social Security and Medicare contributions

3. Understanding North Carolina Taxes

Details: North Carolina has a flat state income tax rate of 4.75% as of 2023. This is applied to all taxable income with no progressive brackets.

4. Using the Calculator

Tips: Enter your annual gross pay, estimated federal tax withholding, and FICA contributions. The calculator will automatically compute North Carolina state tax and your net pay.

5. Frequently Asked Questions (FAQ)

Q1: Why is North Carolina's tax rate flat?
A: North Carolina moved to a flat tax system in recent years to simplify the tax code and attract businesses.

Q2: Are there any deductions from North Carolina state tax?
A: Yes, North Carolina offers standard deductions and some tax credits that may reduce your taxable income.

Q3: How accurate is this calculator?
A: This provides an estimate. Actual take-home pay may vary based on additional factors like retirement contributions or other deductions.

Q4: What's included in FICA?
A: FICA includes Social Security (6.2%) and Medicare (1.45%) taxes, totaling 7.65% of gross pay.

Q5: Are local taxes included?
A: No, North Carolina doesn't have local income taxes, but some municipalities may have other taxes.