North Carolina Paycheck Calculator | NC Tax Rates 2024 (2024)

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Calculate your paycheck in these states

How to calculate your North Carolina paycheck

Understanding your North Carolina paycheck

If deciphering your North Carolina paycheck makes you feel as if you’re decoding a secret message, fear not! We’re here to help illuminate the mystery behind those all-important deductions and taxes.

First, let’s talk about federal income taxes and FICA taxes. Uncle Sam takes a piece of your hard-earned income through federal income taxes, while FICA taxes cover Social Security and Medicare contributions. It’s worth noting that self-employed individuals pay a higher FICA tax rate due to their dual status as both employer and employee.

Next on our decoding journey is the Form W-4. This document plays a significant role in determining the correct amount of federal income tax to withhold from your paycheck. It’s essential to fill it out accurately and update it whenever you experience significant life changes, such as getting married or having a child.

Speaking of marital status, it can impact the tax withheld from your pay. Pre-tax deductions, such as contributions to retirement funds, can also reduce your taxable income, potentially lowering your tax liability.

As a North Carolinian, you also need to consider state income tax. The state has a flat tax rate of 4.99%, meaning everyone pays the same percentage, regardless of income level.

But there’s a silver lining! North Carolina offers a generous state standard deduction, helping to reduce your taxable income. However, the state no longer provides personal exemptions.

Lastly, let’s explore post-tax deductions. These deductions come from your paycheck after taxes have been calculated, including charitable donations, garnishments, or health insurance premiums.

Calculate your North Carolina paycheck

Calculating your North Carolina state income tax is similar to the steps we listed on our main paycheck calculator page:

1. Determine your gross income
   • Annual salary
     Annual salary = Gross income
   • Hourly wage
     Hourly wage × Hours worked per day × Days worked per week × Weeks worked per year = Your weekly paycheck
2. Work out your total federal income tax
   1. Gross income adjusted
      Gross income − Pre-tax deductions = Gross income adjusted
   2. Federal taxable income
      Gross income adjusted − Federal standard/itemized deductions = Federal taxable income
   3. Federal income tax liability
      Federal taxable income × Federal income tax rate = Federal income tax liability
   4. Federal payroll tax liability
      Gross income adjusted × Federal payroll tax rate = Federal payroll tax liability
3. Calculate your total North Carolina state income tax
   1. State taxable income
      Gross income adjusted − State standard/itemized deductions = State taxable income
   2. State income tax liability
      State taxable income × State income tax rate = State income tax liability
4. Figure out your net pay
   You need to account for any other deductions such as health insurance, 401(k) contribution, as well as additional withholdings.
   Gross income − (Total income tax liability + Total payroll tax liability + Total pre-tax deductions + Total post-tax deductions + Total withholdings) = Your net pay
5. Divide your net pay by your pay frequency
   
   • Daily
     Your net pay / Days worked per week / Weeks worked per year = Your daily paycheck
   • Weekly
     Your net pay / 52 = Your weekly paycheck
   • Bi-weekly
     Your net pay / 26 = Your bi-weekly paycheck
   • Semi-monthly
     Your net pay / 24 = Your semi-monthly paycheck
   • Monthly
     Your net pay / 12 = Your monthly paycheck
   • Quarterly
     Your net pay / 4 = Your quarterly paycheck
   • Semi-annual
     Your net pay / 2 = Your semi-annual paycheck
   • Annual
     Your net pay = Your annual paycheck

State income tax brackets

State standard deduction

FAQs