What Is the State Income Tax in North Carolina?

North Carolina residents use Form D-400 to calculate state income tax.

The North Carolina state income tax varies from 6 percent to 7.75 percent for the tax years 2009 and 2010, according to the North Carolina Department of Revenue. Rates are calculated based on residents' income and filing status. Categories include single residents, married couples filing jointly, married couples filing separately, widowed residents and heads of households.

Filing Guidelines

To determine who must file a state tax return, North Carolina uses income guidelines, which are outlined on page 4 of Form D-400. Single residents must file if income exceeds $5,500; residents age 65 or above, $6,250; married residents filing jointly, $11,000; and heads of households, $6,900. Single dependents must file if unearned income from investments and interest is greater than $500 or if earned income from salaries and wages is greater than $3,000.

Single Taxpayers

According to North Carolina's official tax table for 2009-2010, single taxpayers earning less than $12,750 will pay 6 percent of their estimated taxable income on Form D-400. Those earning between $12,750 and $60,000 will pay $765 plus 7 percent of the amount over $12,750. Residents earning $60,000 or more will pay $4,072.50 plus 7.75 percent of the amount over $60,000.

Head of Household Taxpayers

According to North Carolina's official tax table for 2009-2010, taxpayers filing as heads of households who make less than $17,000 will pay 6 percent of their taxable income on Form D-400. Those earning between $17,000 and $80,000 will pay $1,020 plus 7 percent of the amount exceeding $17,000. Those earning $80,000 or more will pay $5,430 plus 7.75 percent of the amount exceeding $80,000.

Married, Filing Jointly or Widowed

The North Carolina official 2009-2010 tax table estimates that taxpayers who are married and filing jointly or widowed taxpayers will pay the following rates. For income less than $21,250, tax is 6 percent of the taxable income calculated on Form D-400. For income of $21,250 up to $100,000, tax is $1,275 plus 7 percent of the amount above $21,250. For income of $100,000 or more, the tax is $6,787.50 plus 7.75 percent of the amount exceeding $100,000.

Married, Filing Separately

For married taxpayers filing separately, the North Carolina official tax schedule for 2009-2010 is as follows. Taxpayers with income up to $10,625 pay 6 percent of taxable income from Form D-400. Those earning $10,625 up to $50,000 pay $637.50 plus 7 percent of the earnings above $10,625. Those earning $50,000 or above will pay $3,393.75 plus 7.75 percent on the amount exceeding $50,000.

References

• North Carolina Department of Revenue: Individual Income Tax Information
• North Carolina Department of Revenue: Tax Rate Schedule for Tax Years 2009 and 2010