If you live or work in North Carolina, you’ve probably wondered how much of your paycheck actually lands in your bank account after taxes. Between federal taxes, FICA (Social Security and Medicare), and North Carolina’s flat state tax, it can feel confusing.
This guide walks you through exactly how to calculate paycheck taxes in North Carolina — step-by-step, with examples, clear formulas, and take-home pay tables you can use to plan your finances.
Step 1. Start with Your Gross Pay
Your gross pay is your total earnings before taxes and deductions.
It’s the starting point for all paycheck calculations.
Examples:
- If you earn $60,000 per year, your monthly gross is $5,000.
- If you earn $25/hour and work 40 hours per week, your gross pay is $1,000 per week, or $52,000 per year.
Whether you’re salaried or hourly, your gross pay tells you the total before anything is taken out.
Step 2. Subtract Pre-Tax Deductions
Some deductions happen before taxes are calculated. These lower your taxable income, which reduces what you owe in both federal and state taxes.
Common pre-tax deductions:
- 401(k) or 403(b) retirement plan contributions
- Health, dental, or vision insurance premiums
- Health Savings Account (HSA) or Flexible Spending Account (FSA) contributions
Example:
If your monthly pay is $5,000 and you contribute $300 to a 401(k) and $200 to health insurance, your taxable income becomes $4,500.
Step 3. Apply Federal Income Tax
The IRS uses progressive tax brackets, meaning higher income portions are taxed at higher rates. For 2025 (single filer):
| Tax Rate | Income Range |
|---|---|
| 10% | Up to $11,600 |
| 12% | $11,601 – $47,150 |
| 22% | $47,151 – $100,525 |
| 24% | $100,526 – $191,950 |
| 32% | $191,951 – $243,725 |
| 35% | $243,726 – $609,350 |
| 37% | Over $609,351 |
Federal withholding depends on your W-4 details (filing status, dependents, and other income). Massachusetts residents can compare Boston results via the Boston calculator.
Compare hourly and salary income through the Utah hourly calculator.
Step 4. Add FICA Taxes (Social Security + Medicare)
All North Carolina paychecks include FICA taxes, which fund federal social programs.
| Tax Type | Rate | Notes |
|---|---|---|
| Social Security | 6.2 % | Up to $168,600 in income |
| Medicare | 1.45 % | No income cap |
| Additional Medicare | 0.9 % | For income above $200,000 (single) |
Example:
On a $60,000 salary:
- Social Security = $3,720
- Medicare = $870
Total FICA = $4,590 per year (≈ 7.65 %).
Step 5. Apply North Carolina State Income Tax
Unlike many states, North Carolina uses a flat tax rate. This means everyone pays the same percentage on taxable income, regardless of how much they earn.
2025 North Carolina Income Tax Rate
| Income Range | Rate |
|---|---|
| All taxable income | 4.5 % |
Example:
If your taxable income is $60,000:
$60,000 × 4.5 % = $2,700 in state taxes per year.
Residents of Philadelphia can verify deductions using the Pennsylvania paycheck calculator.
Step 6. Subtract Post-Tax Deductions
After taxes, your employer might still withhold:
- Roth 401(k) contributions
- Union dues
- Wage garnishments
- Charitable donations
These don’t reduce taxable income but lower your final net paycheck.
Step 7. Calculate Your Net (Take-Home) Pay
Now it’s time to put it all together.
Net Pay = Gross Pay – (Federal Tax + FICA + State Tax + Pre-Tax + Post-Tax Deductions)
Example: Single Filer – $60,000 Salary
| Category | Amount |
|---|---|
| Gross Pay | $60,000 |
| Pre-Tax Deductions | – $2,500 |
| Federal Tax (~12 %) | – $6,840 |
| FICA (7.65 %) | – $4,590 |
| NC State Tax (4.5 %) | – $2,700 |
| Net Take-Home Pay | ≈ $43,370 / year |
That’s roughly $3,615 per month or $1,670 biweekly.
Step 8. Understand Pay Frequency
Your total tax doesn’t change, but how often you’re paid affects how big each check looks.
| Pay Schedule | Paychecks per Year | Example Net Pay ($60k salary) |
|---|---|---|
| Weekly | 52 | ≈ $833 |
| Biweekly | 26 | ≈ $1,670 |
| Monthly | 12 | ≈ $3,615 |
If you’re paid weekly or biweekly, your checks are smaller but more frequent—helpful for cash-flow management.
Step 9. Compare North Carolina to Other States
| State | State Income Tax | Local Tax | Net Pay (on $60,000) |
|---|---|---|---|
| North Carolina | 4.5 % (flat) | None | ≈ $43,370 |
| Texas | 0 % | None | ≈ $46,000 |
| California | up to 9.3 % | None | ≈ $41,000 |
| New York | up to 10.3 % | up to 3.9 % | ≈ $40,500 |
North Carolina sits near the middle — lower than coastal states, but higher than no-tax states like Texas.
Step 10. Tips to Maximize Your Take-Home Pay
- Adjust Your Withholding: Review your W-4 and NC-4 forms annually.
- Use Pre-Tax Accounts: Contribute to a 401(k), HSA, or FSA to lower taxable income.
- Track Local Taxes: North Carolina doesn’t impose city income taxes — but double-check if you work out of state.
- Check Pay Stubs Regularly: Ensure withholding aligns with your expectations.
- Plan for Bonuses: Supplemental income is usually taxed at 22 % federally.
Our yearly net pay summary helps you estimate what you’ll earn after taxes over the course of 12 months.
Frequently Asked Questions
1. What percentage of my paycheck goes to taxes in North Carolina?
For most workers, around 18–25 % of gross income goes to combined federal, state, and FICA taxes.
2. Does North Carolina have local income tax?
No. North Carolina does not impose local (city or county) income taxes.
3. What is the flat income tax rate in North Carolina for 2025?
It’s 4.5 % on all taxable income.
4. How do pre-tax deductions affect my taxes?
They lower your taxable income, which reduces both federal and state tax liability.
5. How can I reduce the tax withheld from my paycheck?
Increase pre-tax contributions or update your W-4 allowances based on your filing status and dependents.
Bettye is the creator of CityPaycheckCalculator.com, a resource designed to help individuals quickly and accurately estimate their take-home pay across U.S. cities. With a strong focus on clarity, accuracy, and user experience, Bettye provides reliable paycheck calculators and helpful insights to support smarter financial decisions. Her mission is to make complex payroll and tax information simple and accessible for everyone.