North Carolina Decreases Income Tax Rate for 2024

December 11, 2023, 7:59 PM UTC

North Carolina’s flat tax rate will decrease in 2024, the state revenue department said Dec. 8.

The tax rate decreases to 4.5%, instead of 4.75%, the department said on the first page of North Carolina’s 2024 withholding methods. The rate used for withholding, including supplemental payments, is 0.1 percentage points higher than the actual income tax rate, meaning withholding uses a rate of 4.6% in 2024, down from 4.85%.

The state’s withholding formula was otherwise unchanged from 2023. The additional withholding amounts that nonresident aliens must enter on Form NC-4 NRA, Nonresident Alien Employee’s Withholding Allowance Certificate, decreased to ...

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