TaxGrader

Taxes in North Carolina: Income, Sales, and Property Tax Guide

Top Income Tax Rate

4.5%

Combined Sales Tax

7.0%

Avg Property Tax Rate

0.7%

Median Household Income

$66,186

How North Carolina Compares to National Average

IRS Statistics of Income Data

Average AGI

$53,500

Average Tax Liability

$7,000

Itemized Deduction Rate

24.0%

Avg SALT Deduction

$6,200

Avg Mortgage Interest Deduction

$8,800

Avg Charitable Deduction

$4,800

Source: IRS Statistics of Income (2022 tax year)

What This Means for You

With a top marginal rate of 4.5%, North Carolina's income tax is near the national median. Combined with a 7.0% sales tax and 0.7% property tax rate, the overall tax burden in North Carolina varies depending on your income, spending, and homeownership status.

Frequently Asked Questions

Does North Carolina have an income tax?

Yes, North Carolina has a state income tax with a top marginal rate of 4.5%.

What is the sales tax in North Carolina?

The combined state and local sales tax rate in North Carolina is approximately 7.0%.

How does North Carolina compare to other states?

Visit our state comparison page or use the Compare tool to see how North Carolina's tax burden compares to neighboring states and the national average.

Related Resources

Data sources: Tax Foundation (2024), IRS Statistics of Income (2022). TaxGrader is not a CPA, tax advisor, enrolled agent, or attorney. This content is for educational and informational purposes only.