North Carolina state income tax rate 2027

What the statute says

General Statute 105-153.7 imposes a flat percentage of North Carolina taxable income: 4.99% for 2022, 4.75% for 2023, 4.5% for 2024, 4.25% for 2025 and "after 2025, 3.99%". Read alone, 2027 is 3.99%.

The revenue trigger

Subsection (a1) lets the rate fall faster. If total General Fund revenue in a named fiscal year exceeds a trigger amount, the rate for the indicated tax year and later years becomes the greater of the prior year's rate minus 0.5 point or 2.49%. The first trigger is $33,042,000,000 of revenue in fiscal year 2025-2026, measured by the State Controller's August 2026 accounting, and it applies to the tax year beginning in 2027. The next triggers are $34.1 billion for 2026-2027 (tax year 2028), then $34.76 billion, $35.75 billion, $36.51 billion, $38 billion, $38.5 billion and $39 billion, ending with tax year 2034.

If the 2025-2026 trigger was met, the 2027 rate is 3.49% (3.99% minus 0.5). This page could not confirm the controller's figure from a readable official source, so it shows 3.99% as the base and gives the 3.49% case as a scenario: change the rate box to compare. Check the Department of Revenue's withholding tables for 2027 when they publish.

Standard deduction

North Carolina applies the rate to adjusted gross income less the greater of the standard or itemized deduction. G.S. 105-153.5 lists $25,500 for married filing jointly, $19,125 for head of household and $12,750 for single and married filing separately, the amounts used here. The statute gives no personal exemption.

Worked example

Single, $75,000 of wages, standard deduction $12,750: taxable income $62,250 and tax $2,483.78 at 3.99%, or $2,172.53 at 3.49%, a difference of $311.25. A couple with $120,000 of wages and a $25,500 deduction has $94,500 taxable and a tax of $3,770.55 at 3.99%. Net pay is on the North Carolina paycheck calculator.

Who this is for, and what it does not cover

It is for employees and planners estimating North Carolina state income tax on wages for 2027. It does not cover local income taxes, tax credits, retirement or investment income, self-employment tax, federal income tax or payroll taxes, and it does not file or submit anything. The result changes if you enter a different rate, so use the rate box when the state announces a final 2027 figure.

FAQ

What is the North Carolina state income tax rate for 2027?

G.S. 105-153.7 sets 3.99% for years after 2025. It also contains a revenue trigger that would lower the 2027 rate to 3.49% if fiscal year 2025-2026 General Fund revenue exceeded $33.042 billion.

Is North Carolina income tax flat?

Yes. The statute applies one percentage to North Carolina taxable income, with no brackets.

How does the North Carolina rate trigger work?

If General Fund revenue in the named fiscal year exceeds the trigger amount, the rate for the matching tax year and later becomes the greater of the prior rate minus 0.5 point or 2.49%.

Which rate should I use for 2027 withholding?

Use the rate in the Department of Revenue's 2027 withholding tables when they appear. This page cannot confirm whether the first trigger was met.

What is the North Carolina standard deduction?

G.S. 105-153.5 lists $12,750 for single filers, $25,500 for married filing jointly and $19,125 for head of household.

Is this my final 2027 North Carolina tax?

No. It is a projection. The rate may be 3.99% or 3.49% depending on the trigger, and credits and adjustments are not modelled.

Sources

Retrieved 2026-11-01. Each link was opened and checked against the claim next to it; where a page blocks automated readers a dated archive copy is named.

• N.C. General Statute 105-153.7 (Wayback copy of ncleg.gov): The rate schedule through 2025, 3.99% after 2025 and the (a1) trigger table.
• N.C. General Statute 105-153.5 (Wayback copy): The standard deduction table of $12,750, $19,125 and $25,500.