File NC Taxes and Get Your Tax Refund Faster
North Carolina is one of 42 states (and the District of Columbia) that impose taxes on individual incomes earned from wages, salaries, and investments. It is one of 14 states that subscribe to a single-rate or “flat tax” structure, in which all taxable income is assessed a 4.5 percent levy for 2024 taxes, regardless of income bracket, because the state does not use a graduated tax rate schedule, unlike the 28 states that do. The tax rate on income in 2025 will be 4.25 percent. For the taxable years thereafter, North Carolina’s income tax rate falls to 3.99 percent.
Who Must File Taxes?
In general, residents must file North Carolina income taxes if they meet or exceed the benchmark income levels of $12,750 for single filers, $19,125 for heads of households, and $25,500 for married taxpayers filing their returns jointly. These figures also represent the standard deduction amounts that state taxpayers are eligible to claim.
Nonresidents who earned income from wages or investment from jobs or property located in the state will need to file for NC taxes. The same applies to part-year residents, but this group can file for a credit for taxes paid to another state.
Nonresidents or part-year residents must complete a Form D-400 Schedule PN, Part-Year and Nonresident Schedule to determine the total gross income percentage of all sources subject to North Carolina tax.
For those who are not required to file state or federal returns but paid taxes during the year, a state tax return must be submitted to qualify for NC tax refunds.
The tax deadline for filing state taxes is the same as the April 15 federal deadline, but taxpayers may request a six-month extension using Form D-410, which may be filed electronically. While the extension is automatic (as long as the taxpayer receives a federal income tax extension), filing a Form D-410 will not extend the deadline for paying any taxes due for that year.
If a NC Tax Return Has Errors
State tax returns should be amended as soon as the taxpayer determines that the original return contained errors or omissions, using Form D-400 for the tax year in question and filling in the “Amended Return” circle on the top right corner. Amended tax returns that include a refund should be submitted within three years from the original deadline or two years from the date taxes were paid. Amended returns can be tracked by calling the Department of Revenue at 1-877-252-4052.
Changes made by the IRS on the federal return should be reported to NCDOR as an amendment on state tax returns. The amendment must be filed within 6 months of filing a federal amendment return. If this isn’t done, the taxpayer could be subject to a 5 percent penalty for every month the taxes aren’t filed, not to exceed 25 percent of the tax due.
Preparing to File NC Taxes
Taxpayers should prepare and submit their federal tax returns prior to or at the same time as filing state taxes. A copy of the federal return may have to be attached if the return does not show an NC address. Typically, filers will use Form D-400 to file North Carolina tax returns. However, special circumstances may require the use of Forms D-400 Schedule S and D-400TC. The North Carolina Department of Revenue (NCDOR) recommends e-filing NC tax returns with a partnering online software provider, such as E-file, for more efficient processing.
The status of NC tax refunds can be tracked at https://eservices.dor.nc.gov/wheresmyrefund/SelectionServlet.
There is no phone number to check the status. Taxpayers can call NCDOR at 1-252-3052 for general questions about filing and returns. Additionally, other options for individual filers can be found on the eServices section of the Department of Revenue website, including a form for "Estimated Income Tax."
Penalties for Unpaid NC Taxes
The NC Revenue Department will impose a 5 percent penalty every month that taxes due are unpaid after the April 15 deadline. This penalty is capped at 25 percent of the tax due.
Frequently Asked Questions
Is any income exempt from state income tax?
Social Security or railroad retirement benefits are generally exempt, as long as they are taxed on the federal return. If this is the case, the taxpayer can take these benefits as deductions on their state tax returns. Additionally, military retirement pay is exempt from taxation in North Carolina.
How long does it take for the state to issue a tax refund?
NC taxpayers typically receive their refunds within two weeks if filing electronically. Those who file paper returns might have to wait longer—up to three months or more.
Note: States & U.S. territories may make changes to their tax laws with little notice. We do our best to keep this information up-to-date, but it is provided on an "AS IS" basis. For more see our terms.