Retirement Tax Breakdown for North Carolina Residents

Complete North Carolina retirement tax guide: income tax rates, capital gains treatment, Social Security and pension taxation, property taxes, and sales tax. Overall retiree-friendliness rank: #13 of 51.

State Income Tax
4.5% top rate

1 bracket(s)

Capital Gains Rate
4.5%

Treated as ordinary income

Property Tax Rate
0.77%

#29 (Above Avg)

Sales Tax Rate
7%

State 4.75% + local avg 7%

Tax-Friendly State

North Carolina fully exempts all retirement income. The flat income tax rate is being reduced each year. Property taxes are below average.

Retirement Income Taxation

Social Security

Not taxed

Pension Income

Not taxed

Retirement Exemption

None

Tax Comparison Summary

State income tax4.5% top
Capital gains4.5%
Property tax0.77% effective
Sales tax7% combined
Overall retiree rank#13 of 51

North Carolina Income Tax Brackets

State Tax Bracket Schedule

RateFromTo
4.5%$0No limit

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