2026 Tax Tables
North Carolina completed its final scheduled income tax rate reduction in 2026, dropping from 4.25% to 3.99% as part of the S.B. 105 phased reduction plan. North Carolina eliminated personal exemptions, so only the standard deduction ($13,000 single / $26,000 married) applies before the flat rate. Employees use Form NC-4 to indicate their filing status. The NC Child Deduction may further reduce withholding for employees with qualifying children, though the phase-out calculation is income-dependent.
Calculate North CarolinaWithholding →State Tax Rate
3.99% flat
State W-4 Form
NC-4
Tax Year
2026
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North Carolina's flat income tax rate is 3.99% for 2026, reduced from 4.25% in 2025. This was the final step in the phased reduction schedule established by S.B. 105.
The NC standard deduction is $13,000 for single filers and head of household, and $26,000 for married filing jointly. This is subtracted from annualized wages before applying the 3.99% rate.
No. North Carolina eliminated personal exemptions as part of its tax reform. The only pre-rate deduction in the withholding formula is the standard deduction. Employees with qualifying children may reduce withholding through the NC Child Deduction on Form NC-4.
No. North Carolina uses its own NC-4 form (Employee's Withholding Allowance Certificate). The filing status on the NC-4 determines which standard deduction amount applies.