North Carolina to Decrease Income Tax Rate for 2026

North Carolina’s flat income tax rate will decrease for 2026, the state revenue department said in its 2026 withholding methods.

The income tax rate is 3.99% for 2026, down from 4.25% for 2025, the department said in the withholding methods. The rate used for withholding in 2026 is 4.09%, down from 4.35%, the department said.

No changes were made to the percentage method tables except for the tax rate, while the wage-bracket tables were adjusted.

The amounts of additional withholding that nonresident aliens must claim decreased to $41 from $44 for a monthly pay period, $22 from $24 for ...