Current Tax Year Rates

Session Law 2023-134 updated the NC individual income tax rate for future tax years. The new rate for each tax year is as follows:

For Taxable Years beginning in 2025, the North Carolina individual income tax rate is 4.25% (0.0425).

For Taxable Years after 2025, the North Carolina individual income tax rate is 3.99% (0.0399).

Additional rate changes may apply to tax years beginning with 2027 based on certain rate reduction triggers. For more information, see Session Law 2023-134 .