Last updated: December 18th, 2025
Each state has unique income tax withholding rules. Below are North Carolina's 2026 withholding instructions, including allowance calculations, standard deduction adjustments, and the percentage method for determining tax due.
Employers must also adhere to federal income tax withholding rules. More information can be found here about federal rates.
Alternatively, employers can automatically calculate payroll withholding by using ezPaycheck.
| State Abbreviation | NC |
|---|---|
| State Tax Withholding State Code | 37 |
| Acceptable Exemption Form | NC-4 |
| Basis For Withholding | State Exemptions |
| Acceptable Exemption Data | S, M, H / Number of Allowances |
| TSP Deferred | Yes |
| Special Coding | None |
| Additional Information | None |
| Official State Tax Website | Visit Official Website |
NC-4 focuses on the N.C. Child Deduction. Personal exemptions remain repealed.
| Component | Allowances | Notes |
|---|---|---|
| Yourself | 0 allowances | Repealed |
| Spouse | 0 allowances | Repealed |
| Qualifying Children | 1-2 allowances | 1 for one child, 2 for two or more |
Total Allowances = Child Deduction Allowances (0-2)
For links to official state tax and revenue websites for all 50 states, visit our State and Local Tax Sites page.
Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages.
Subtract the nontaxable biweekly Federal Health Benefits Plan payment(s) from the amount computed in step 1.
Add the taxable biweekly fringe benefits 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 and subtract this amount from the annual wages.
Determine the dependent allowance ($2,500 × Number of Dependents) and subtract this amount from the result of step 5.
Dependent Allowance = $2,500 × Number of Dependents
Apply the taxable income computed in step 6 to the flat rate to determine the North Carolina tax withholding.
Tax = Taxable Income × 4.09%
Divide the annual North Carolina tax withholding by 26 to obtain the biweekly North Carolina tax withholding.
Want to calculate in an easier way? Learn how to calculate North Carolina taxes via ezPaycheck below.
Learn More| Annualized Wages | Deduction |
|---|---|
| All | $12,750 |
Standard deduction for Single or Married Filing Separately.
| Annualized Wages | Deduction |
|---|---|
| All | $12,750 |
Standard deduction for Married Filing Jointly or Surviving Spouse.
| Annualized Wages | Deduction |
|---|---|
| All | $19,125 |
Standard deduction for Head of Household.
| Withholding Allowance | Annual Amount |
|---|---|
| 1 | $2,500 |
Formula: $2,500 × Number of Allowances
Allowance amount.
Rate: 4.09%
The flat tax rate for 2026 is 4.09% as established by Session Law 2023-134.
ezPaycheck simplifies payroll calculations, including North Carolina's withholding rules. Easily compute taxes, generate reports, and print paychecks or tax forms.
We strive to provide accurate and up-to-date North Carolina state tax information for 2026. If you notice any discrepancies, errors, or have questions about the tax rates or calculations shown on this page, please contact our support team. We appreciate your feedback and will review and update the information as needed.
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