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North Carolina State Income Tax Tables in 2025 The Income tax rates and personal allowances in North Carolina are updated annually with new tax tables published for Resident and Non-resident taxpayers. The Tax tables below include the tax rates, thresholds and allowances included in the North Carolina Tax Calculator 2025. North Carolina Single Filer Standard Deduction The standard deduction ...

The new rate for each tax year is as follows: For Taxable Years beginning in 2024, the North Carolina individual income tax rate is 4.5%. For Taxable Years beginning in 2025, the North Carolina individual income tax rate is 4.25%. For Taxable Years after 2025, the North Carolina individual income tax rate is 3.99%.

In addition to North Carolina changes, the federal standard deduction, which reduces the amount of income subject to tax, will also see an increase. For single taxpayers, the standard deduction for the 2025 tax year will rise by $400 to $15,000, while for married taxpayers filing jointly, it will increase by $800 to $30,000.

The House-passed budget would raise the standard deduction amounts to $13,000 and $26,000 for single and married filers, respectively, in 2024. The Senate-passed budget would not change the standard deduction, but would reduce the individual income tax rate faster and further.

The North Carolina standard deduction is a key element of state tax filings, directly impacting how much residents owe. Understanding this deduction helps taxpayers reduce liabilities and plan financially.

Currently, North Carolina offers a standard deduction of $12,750 for single filers and $25,500 for married couples filing jointly, slightly below the federal standard deduction amounts of $13,850 and $27,700, respectively.

"(a) Deduction Amount. – In calculating North Carolina taxable income, a taxpayer may deduct from adjusted gross income either the standard deduction amount provided in subdivision his subsect on or the itemized deduction amount p vided in subdivision (2) of th subsection. The deduction amounts are as follows: for

The decision between the North Carolina standard deduction and itemizing is often linked to choices made on your federal tax return. The federal standard deduction for 2024 is $13,850 for single filers and $27,700 for married couples filing jointly. Taxpayers frequently align their state and federal strategies, as many itemized deductions overlap.

Updated Jan. 08, 2025 Find North Carolina standard deductions, tax brackets and rates by tax year. North Carolina Income Tax Returns

The next phase of the General Assembly’s income tax reduction plan took effect on Wednesday for all North Carolina workers, dropping the flat tax rate from 4.5% in 2024 to 4.25% for the 2025 calendar year. The phased tax reductions started in 2022 and will continue into 2026 when the rate is scheduled to lower to 3.99%.

Learn about North Carolina state income tax rates, brackets, filing requirements, refund and available deductions for residents.

Here’s a breakdown of five key updates to keep on your radar for 2025: 1. North Carolina’s Individual Income Tax Rate Reduction North Carolina residents will see a welcome reduction in state income taxes. For the 2025 tax year, the individual income tax rate drops to 4.25%, down from 4.5% in 2024.

Standard Deduction in North Carolina The standard deduction is a pre-set amount determined by the tax authorities that taxpayers can claim without the need to itemize their expenses.

The budget also increases the state’s standard deduction and child deduction. The law increases the standard deduction from $21,500 to $25,500 for married, filing jointly; from $16,125 to $19,125 for head of household; from $10,750 to $12,750 for single filers, and from $10,750 to $12,750 for married filers filing separately.

Before information on the 2025 income tax deductions are released, provisional 2025 deduction information is based on 's 2024 tax deduction policy. The 2025 standard deductions, personal exemptions, and dependent deduction amounts are sourced from the .

Taxpayers must account for North Carolina-specific deductions, such as the standard deduction, which varies based on filing status. In 2023, the standard deduction amounts are $21,500 for married couples filing jointly, $10,750 for single filers, and $16,125 for heads of household.

The North Carolina income tax has one tax bracket, with a maximum marginal income tax of 4.750% as of 2025. Detailed North Carolina state income tax rates and brackets are available on this page.

For single taxpayers and married individuals filing separately in tax year 2025, the standard deduction is rising to $15,000 — up $400 from 2024.

The House would stop there. The Senate would keep cutting. The Senate budget would drop the rate to 3.99% in 2025 and 2.49% by 2030. Competing tax plans differ on more than just rates. The House would raise the standard deduction and child deduction in 2024. Both deductions add progressivity to North Carolina’s income tax.