1. What is the North Carolina Paycheck Tax Calculator?

The North Carolina Paycheck Tax Calculator helps employees and employers calculate net pay after deducting federal tax, North Carolina state tax (4.99%), and FICA (7.65%) from gross pay.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• \( Gross Pay \) — Total earnings before deductions (USD)
• \( Federal Tax \) — Federal income tax based on percentage rate
• \( NC State Tax \) — North Carolina state tax at 4.99%
• \( FICA \) — Federal Insurance Contributions Act tax at 7.65%

Explanation: The calculation deducts all applicable taxes from the gross pay amount to determine the actual take-home pay.

3. Importance of Net Pay Calculation

Details: Understanding net pay is essential for budgeting, financial planning, and ensuring accurate payroll processing. It helps employees know their actual take-home amount after all mandatory deductions.

4. Using the Calculator

Tips: Enter gross pay in USD and federal tax percentage. The calculator automatically applies NC state tax (4.99%) and FICA (7.65%) rates. All values must be valid (gross pay > 0, federal tax between 0-100%).

5. Frequently Asked Questions (FAQ)

Q1: What is included in FICA?
A: FICA includes Social Security tax (6.2%) and Medicare tax (1.45%), totaling 7.65% of gross pay.

Q2: Is NC state tax always 4.99%?
A: Yes, North Carolina has a flat state income tax rate of 4.99% for all income levels as of 2025.

Q3: How do I determine my federal tax percentage?
A: Federal tax percentage depends on your filing status, income level, and W-4 allowances. Consult IRS tax tables or your payroll department.

Q4: Are there other deductions not included?
A: This calculator includes only mandatory taxes. Other deductions like health insurance, retirement contributions, or voluntary deductions are not included.

Q5: Can this calculator be used for different pay periods?
A: Yes, simply enter the gross pay for your specific pay period (weekly, bi-weekly, monthly, etc.).