North Carolina payroll taxes

North Carolina state income tax: Flat-rate income tax. Employers withhold using your NC-4 and the latest Department of Revenue tables.
Local income tax: North Carolina cities/counties do not levy wage-based local income taxes on employees.
Employer payroll taxes: State Unemployment Insurance (SUI) is employer-paid; employees do not contribute from wages.
FICA (federal): Social Security and Medicare—see the FICA section below.
Federal income tax (FIT): Withheld using IRS rules and your federal Form W-4 elections.
Pre-tax deductions: Traditional 401(k), HSA/FSA, and Section 125 premiums can reduce taxable wages (FIT/state and sometimes FICA).
Post-tax deductions: Roth 401(k), garnishments, union dues, and other after-tax items reduce net pay after taxes.

How Your North Carolina Paycheck Works

Start with gross pay (salary for the period or hourly rate × hours; include overtime where due).
Subtract pre-tax items (401(k), HSA/FSA, cafeteria plans) to determine taxable wages.
Apply FICA (Social Security up to the annual wage base; Medicare on all wages; Additional Medicare for high earners).
Calculate federal withholding using IRS methods and your W-4.
Calculate North Carolina state withholding using NC-4 and current state tables.
Employer separately pays North Carolina SUI—this does not reduce your net pay.
Subtract post-tax deductions to arrive at net pay.

North Carolina unemployment insurance (SUI) — 10-year snapshot

Employees do not pay North Carolina UI from wages. Employers contribute on a taxable wage base at new-employer or experience rates (confirm your annual rate notice).

Year	Employee UI Rate	Employee Pays?	Employer Taxable Wage Base (approx.)	New Employer Rate (typ.)	Experienced Employer Rate Range (approx.)
2016	0%	No	$23,000	~1.2%–2.7%	~0.06%–5.7%
2017	0%	No	$23,200	~1.2%–2.7%	~0.06%–5.7%
2018	0%	No	$23,500	~1.2%–2.7%	~0.06%–5.8%
2019	0%	No	$24,000	~1.2%–2.7%	~0.06%–5.8%
2020	0%	No	$25,000	~1.2%–2.7%	~0.06%–5.9%
2021	0%	No	$26,000	~1.2%–2.7%	~0.06%–5.9%
2022	0%	No	$27,000	~1.2%–2.7%	~0.06%–6.1%
2023	0%	No	$28,000	~1.2%–2.7%	~0.06%–6.3%
2024	0%	No	$30,000	~1.2%–2.7%	~0.06%–6.5%
2025	0%	No	$31,200	~1.2%–2.7%	~0.06%–6.7%

North Carolina salary threshold

North Carolina follows federal FLSA white-collar rules. Exempt status requires meeting the current federal salary threshold and the applicable duties tests. If either test is not met, overtime is due after 40 hours in a workweek.

Median Household Income — North Carolina (10 years, current dollars)

Illustrative nominal values showing trend; confirm with the latest American Community Survey for official statistics.

Year	Median Household Income
2015	$48,300
2016	$50,300
2017	$52,700
2018	$55,600
2019	$57,300
2020	$58,700
2021	$60,500
2022	$65,200
2023	$68,400
2024	$70,100

North Carolina Federal Insurance Contributions Act (FICA)

Social Security: 6.2% employee + 6.2% employer, up to the annual federal wage base.
Medicare: 1.45% employee + 1.45% employer on all wages.
Additional Medicare: 0.9% employee-only on wages above $200,000 (employer remains 1.45%).

Number of cities that have local income taxes

North Carolina does not levy municipal wage-based income taxes on employees. Paychecks show federal withholding, North Carolina state income tax, FICA, and any benefit or court-ordered deductions. Some jurisdictions impose business privilege or license taxes on employers, but those charges are not taken from employee wages nor affect standard withholding.

Local income tax table (employee wage tax)

City/County	Local Income/Wage Tax	Notes
Statewide (North Carolina)	None	No municipal/county percentage-of-wages income tax on employees

North Carolina Wage and Hour Laws: Overtime, Pay Frequency

Overtime: Most non-exempt employees earn 1.5× after 40 hours/week (no statewide daily overtime rule).
Minimum wage: North Carolina follows the federal minimum wage for most covered employers.
Pay frequency: Employers must set regular, established paydays (weekly/biweekly/semimonthly common) and pay wages on time; final-pay deadlines apply at separation.
Meals/rests: Follow federal/state standards; minors and certain industries may have additional protections.

Additional North Carolina forms

NC-4 — Employee’s Withholding Allowance Certificate (state).
Withholding returns — Employer deposit schedule and annual reconciliation with W-2 filing.
UI Employer Registration & Rate Notice — NC Division of Employment Security account setup and rate assignment.
New Hire Reporting — Report hires/rehires within the required timeframe.
Required workplace posters — Wage/hour, unemployment, safety, and federal postings.

FAQs — North Carolina Salary Paycheck Calculator

How do I use a North Carolina Salary Paycheck Calculator to estimate net pay?

Enter gross pay and pay frequency, your federal W-4 and NC-4 elections, plus any pre-/post-tax deductions. The calculator applies FICA, federal withholding, and North Carolina state withholding to produce per-paycheck and annual take-home estimates.

Does any North Carolina city take a local income tax from my paycheck?

No. North Carolina cities and counties do not levy wage-based local income taxes. Your pay stub typically shows federal, state, FICA, and benefit/garnishment lines only.

Do employees pay North Carolina unemployment insurance from wages?

No. North Carolina UI is funded by employer contributions. Employees will not see a state UI deduction on their pay stubs.

Which form changes my North Carolina state withholding?

Use NC-4 to set or update your North Carolina withholding elections—especially after life events, address changes, or when you hold multiple jobs.

What salary makes me exempt from overtime in North Carolina?

North Carolina follows federal FLSA rules. Exempt status requires meeting the current federal salary threshold and the applicable duties tests; otherwise, overtime is due after 40 hours/week.

How are bonuses and commissions taxed on a North Carolina paycheck?

They’re subject to federal supplemental methods, FICA, and North Carolina state withholding. There is no local wage tax. Enter bonuses as supplemental pay to apply correct withholding.

Can I add a flat extra amount of North Carolina withholding each paycheck?

Yes. Request an additional state withholding amount on NC-4. Add the same extra amount in the calculator to preview its impact on take-home and your year-end balance.

How do pre-tax benefits (401(k), HSA, FSA) affect my North Carolina paycheck?

Pre-tax benefits reduce federal and North Carolina taxable wages—and sometimes FICA—raising take-home pay. Enter them as pre-tax in the calculator for accurate results.

Are Roth 401(k) contributions pre-tax?

No. Roth contributions are post-tax and do not reduce taxable wages today. Enter them as post-tax deductions; qualified withdrawals may be tax-free later.

How should I handle overtime and shift differentials?

Input overtime hours and premium rates; the calculator adds them to gross pay and recomputes FICA, federal, and state withholding for the period.

What pay frequency should I pick?

Use your employer’s schedule (weekly, biweekly, semimonthly, monthly). The calculator prorates gross and withholdings per period and annualizes statutory caps like the Social Security wage base.

Why did my net increase mid-year without a raise?

You may have reached the Social Security wage base; Social Security withholding stops for the rest of the year while Medicare continues, increasing your net pay.

How are tips treated for North Carolina payroll?

Reported tips are subject to FIT, FICA, and North Carolina withholding. Include tips in your estimate to avoid under-withholding and year-end surprises.

Does Additional Medicare tax apply in North Carolina?

Yes—federally. Employees pay an extra 0.9% on wages above $200,000. Employers do not match it. The calculator adds it automatically if applicable.

Do student employees ever avoid FICA?

Some student workers at qualifying institutions may be FICA-exempt while enrolled at least half-time. If exempt, remove FICA for that job in your estimate.

How do I reflect year-to-date (YTD) wages and taxes?

Enter YTD amounts so the calculator can stop Social Security after the annual cap and continue Medicare, improving mid-year accuracy.

How are PTO payouts taxed?

PTO payouts are taxable wages subject to FIT, FICA, and North Carolina withholding. If paid separately, employers may use supplemental methods; model as supplemental wages for precision.

Can I claim exempt from North Carolina withholding?

Only if you meet state criteria (e.g., no NC tax liability last year and none expected this year). Otherwise, use standard NC-4 elections or add a specific extra amount.

Are charitable payroll deductions pre-tax?

Typically no; they are post-tax and do not reduce payroll taxable wages. Any deduction benefits are reconciled on your income tax return.

How are non-cash awards or imputed benefits handled?

Add the fair market value to taxable wages; the calculator withholds FIT, FICA, and NC state tax on the imputed amount while cash received remains unchanged for that portion.

What if I work partly outside North Carolina?

Withholding generally follows where wages are sourced. If you earn in another state, that state may require withholding; your NC return may allow credits for tax paid elsewhere.

How do garnishments affect my paycheck?

Enter court-ordered amounts as post-tax deductions. The calculator subtracts them after taxes. Statutory limits and employer processing timelines apply.

How can I avoid a large balance due at year-end?

Increase per-paycheck withholding (federal and state) via extra amounts on W-4 and NC-4, adjust pre-tax contributions, or make estimated payments. Use the calculator to preview outcomes first.

Can I compare traditional vs. Roth 401(k) effects on take-home?

Yes. Run a traditional (pre-tax) scenario and a Roth (post-tax) scenario to see immediate net-pay differences and plan long-term tax outcomes.

How do I model a mid-year raise or promotion?

Run two scenarios—old rate for already-paid periods and new rate for remaining periods—then combine to project full-year taxes and take-home pay.

North Carolina Salary Paycheck Calculator