Use our North Carolina Paycheck Calculator to quickly figure out how much you’ll take home after taxes. Just enter your salary, pay frequency, and deductions to see a detailed breakdown of your gross pay, taxes, and net pay in seconds.
How Your North Carolina Paycheck is Calculated
Your paycheck depends on how much you earn and how much is withheld for taxes. The general formula is:
Gross Pay – (Federal Taxes + State Taxes + Local Taxes + FICA) = Net Pay
Here’s what each term means:
- Gross Pay: The total amount you earn before any deductions.
- Federal Income Tax: The amount withheld by the IRS based on your income and filing status.
- FICA Taxes: Federal Insurance Contributions Act taxes, which include Social Security and Medicare contributions.
- State Income Tax: The amount North Carolina withholds for state income tax.
- Local Taxes: Some cities or counties may charge additional taxes, but North Carolina generally has no local income tax.
A Guide to North Carolina State Payroll Taxes
North Carolina State Income Tax
North Carolina has a flat income tax rate, meaning everyone pays the same percentage regardless of income level.
2025 North Carolina State Income Tax Rate:
| Tax Year | Flat Tax Rate |
|---|---|
| 2025 | 4.5% |
Standard Deductions:
- Single: $12,750
- Head of Household: $19,125
- Married Filing Jointly: $25,500
North Carolina does not offer personal exemptions, but you can claim federal itemized or standard deductions on your state tax return.
State-Specific Programs & Withholdings
North Carolina does not have a state disability insurance (SDI) tax or a separate state unemployment insurance (SUI) tax for employees. However, employers pay SUI on behalf of their workers. Employees mainly contribute to state taxes through income tax withholding.
Understanding Federal & FICA Taxes
Federal and FICA taxes apply to all U.S. employees regardless of where they live. These deductions fund national programs such as Social Security and Medicare.
For 2025:
- Social Security Tax: 6.2% on wages up to $168,600
- Medicare Tax: 1.45% on all wages
- Additional Medicare Tax: 0.9% on wages over $200,000 for single filers ($250,000 for married couples filing jointly)
These withholdings ensure you contribute to federal retirement and healthcare programs.
Local Taxes in North Carolina
North Carolina does not levy local or city income taxes. However, local governments may impose sales taxes and property taxes, which do not affect paycheck withholdings. Whether you work in Durham, Winston-Salem, or Fayetteville, your state income tax rate remains the same across all cities.
Frequently Asked Questions (FAQs) About North Carolina Paychecks
What is the minimum wage in North Carolina?
As of 2025, North Carolina’s minimum wage is $7.25 per hour, which matches the federal minimum wage.
How often are paydays in North Carolina?
Employers in North Carolina typically pay employees on a weekly, bi-weekly, or semi-monthly schedule. The exact frequency depends on the employer’s payroll policy.
What is the North Carolina state tax rate for 2025?
For 2025, the North Carolina state income tax rate is a flat 4.5% for all income levels.
Are 1099 contractors subject to North Carolina taxes?
Yes. Independent contractors in North Carolina must pay state income tax and self-employment taxes, which include both the employer and employee portions of FICA taxes.
What are the overtime laws in North Carolina?
Under state and federal law, employees must receive overtime pay at 1.5 times their regular hourly rate for any hours worked beyond 40 in a workweek.