North Carolina payroll taxes, 2026
North Carolina taxes income at a flat 3.99% in 2026, withholds with a 4.09% factor and the standard deduction built into its tables, and charges employers unemployment tax on the first $34,200 of wages.
Income tax withholding
The NCDOR 2026 withholding tables and instructions say the individual income tax rate for 2026 is 3.99% and that the percentage-method calculations use that rate plus 0.1%, a withholding factor of 4.09%. The standard deduction ($12,750 for single filers) is already inside the table brackets, so employers do not subtract it separately; the tables list the amounts for other filing statuses.
Employees give the employer an NC-4, NC-4 EZ, or NC-4 NRA. Without one, the employer withholds as single with no allowances. This site’s North Carolina paycheck calculator applies 3.99% to income after the standard deduction, so it can come in a little under a stub that uses the 4.09% factor.
Bonuses and other supplemental pay
When the employer withholds from regular wages, NCDOR allows a flat 4.09% on supplemental wages. Federal withholding on a bonus is separate: a flat 22% for most employees (see the bonus tax calculator).
Unemployment tax (SUI)
The Division of Employment Security lists a 2026 taxable wage base of $34,200 per employee. The base rate is 1.9%, minus an employer reserve-ratio percentage that depends on the employer’s payroll and account balance. Individual rates run from 0.06% to 5.76%, and new employers pay 1%. State law allows a 20% surtax in a year when the trust fund is low; the Division’s 2026 rate page did not list one when checked, so confirm on your rate notice. Source: NC DES tax rate information.
Local tax and the minimum wage
The calculator applies no city or county wage tax in North Carolina, and we did not find one; confirm with NCDOR if unsure. North Carolina follows the federal minimum wage of $7.25 an hour: see the North Carolina minimum wage. To restate a wage as a salary, try the North Carolina hourly to salary calculator. Checked October 19, 2026.
| Salary | Biweekly net | State tax and programs per year | Net per year |
|---|---|---|---|
| $40,000 | $1,278.18 | $1,087.27 | $33,232 |
| $60,000 | $1,865.56 | $1,885.27 | $48,504 |
| $80,000 | $2,401.02 | $2,683.27 | $62,426 |
| $100,000 | $2,911.48 | $3,481.27 | $75,698 |
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Questions
What is the North Carolina income tax rate in 2026?
3.99% flat. The Department of Revenue’s employer publication says the withholding calculations add 0.1%, a 4.09% factor, so withholding runs slightly above the statutory rate.
What is the North Carolina standard deduction?
$12,750 for single filers, confirmed in the NCDOR 2026 withholding tables, which already factor the standard deduction in. Confirm the married and head-of-household amounts in those tables.
What if an employee does not give the employer an NC-4?
The employer withholds as if the employee were single with no allowances.
How are bonuses withheld in North Carolina?
If the employer withholds from regular wages, supplemental wages can be withheld at a flat 4.09% in 2026.
What is the North Carolina unemployment wage base?
$34,200 per employee for 2026, up from $32,600 in 2025. The base rate is 1.9% reduced by a reserve-ratio credit, individual rates run from 0.06% to 5.76%, and new employers pay 1%. These are employer taxes.
Will the rate change in 2027?
State law schedules a cut from 3.99% to 3.49% for tax year 2027, according to a May 2026 budget office analysis, but the governor’s budget proposal would hold 3.99%. It is not settled and does not affect 2026 paychecks.