How to Calculate 2016 North Carolina State Income Tax by Using State Income Tax Table
1. Find your income exemptions
2. Find your pretax deductions, including 401K, flexible account contributions ...
3. Find your gross income
4. Check the 2016 North Carolina state tax rate and the rules to calculate state income tax
5. Calculate your state income tax step by step
6. If you want to simplify payroll tax calculations, you can download
ezPaycheck payroll software, which can calculate federal tax, state tax, Medicare tax, Social Security Tax and other taxes for you automatically. You can try it free for 30 days, with no obligation and no credt card needed.
Withholding Formula >(North Carolina Effective 2016)<
Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages.
Subtract the nontaxable biweekly Federal Health Benefits Plan payment(s) (includes dental and vision insurance program, and flexible spending account - health care and dependent care deductions) from the amount computed in step 1.
Add the taxable biweekly fringe benefits (taxable life insurance, etc.) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.
Multiply the adjusted gross biweekly wages by 26 to obtain the annual wages.
Determine the standard deduction allowance by applying the following guideline and subtract this amount from the annual wages.
If the Employee Is:
The Standard Deduction Is:
Single, Married or Qualifying Widow(er)
$ 7,750
Head of Household
12,400
Determine the dependent allowance by applying the following guideline and subtract this amount from the result of step 5.
Dependent Allowance = $2,5001 x Number of Dependents
Apply the taxable income computed in step 6 to the following table to determine the North Carolina tax withholding.
Tax Withholding Table
Single, Married Person, Qualifying Widower and Head of Household
If the Amount of
Taxable Income Is:
The Amount of North Carolina
Tax Withholding Should Be:
Over:
But Not
Over:
$ 0
and over
5.85%
minus
$ 0.00
Divide the annual North Carolina tax withholding by 26 and round to the nearest dollar to obtain the biweekly North Carolina tax withholding.