How to Calculate Paycheck Taxes in North Carolina
A comprehensive guide to understanding and calculating your paycheck taxes in North Carolina
Overview of North Carolina Paycheck Taxes
When calculating your paycheck taxes in North Carolina, you need to consider several components:
- Federal Income Tax
- North Carolina State Income Tax (4.75% flat rate)
- Social Security Tax (6.2%)
- Medicare Tax (1.45%)
- Additional Medicare Tax (0.9% for high earners)
Step 1: Calculate Gross Pay
Start with your gross pay, which is your total earnings before any deductions. This includes:
- Regular wages
- Overtime pay
- Bonuses
- Commissions
Example:
If you earn $50,000 per year and are paid bi-weekly:
Gross pay per paycheck = $50,000 ÷ 26 = $1,923.08
Step 2: Calculate Pre-Tax Deductions
Subtract pre-tax deductions from your gross pay. Common pre-tax deductions include:
- 401(k) contributions
- Health insurance premiums
- Flexible Spending Account (FSA) contributions
- Health Savings Account (HSA) contributions
Example:
If you contribute 6% to 401(k) and pay $200 monthly for health insurance:
401(k) deduction = $1,923.08 × 0.06 = $115.38
Health insurance deduction = $200 ÷ 2 = $100
Total pre-tax deductions = $215.38
Step 3: Calculate Federal Income Tax
Use the 2024 federal tax brackets to calculate your federal income tax:
| Filing Status | Tax Rate | Income Range |
|---|---|---|
| Single | 10% | $0 – $11,600 |
| Single | 12% | $11,601 – $47,150 |
| Single | 22% | $47,151 – $100,525 |
Example:
For a single filer with $50,000 annual income:
First $11,600 at 10% = $1,160
Next $35,550 at 12% = $4,266
Remaining $2,850 at 22% = $627
Total federal tax = $6,053 per year
Step 4: Calculate North Carolina State Tax
North Carolina uses a flat tax rate of 4.75% for all income levels.
Example:
For $50,000 annual income:
State tax = $50,000 × 0.0475 = $2,375 per year
Per paycheck = $2,375 ÷ 26 = $91.35
Step 5: Calculate FICA Taxes
FICA taxes include Social Security (6.2%) and Medicare (1.45%):
Example:
For $50,000 annual income:
Social Security = $50,000 × 0.062 = $3,100 per year
Medicare = $50,000 × 0.0145 = $725 per year
Total FICA = $3,825 per year
Per paycheck = $3,825 ÷ 26 = $147.12
Important Notes:
- Social Security tax has a wage base limit of $168,600 for 2024
- Additional Medicare tax of 0.9% applies to income over $200,000 for single filers
- North Carolina does not have local income taxes
- Tax rates and brackets are subject to change annually
Final Calculation Example
Bi-weekly Paycheck Breakdown for $50,000 Annual Salary:
Gross Pay: $1,923.08
Pre-tax Deductions: -$215.38
Federal Tax: -$232.81
State Tax: -$91.35
FICA Taxes: -$147.12
Net Pay: $1,236.42