States / North Carolina

North Carolina

Last checked Oct 22, 2026

North Carolina practitioners use about six separate state logins for tax and payroll work, run by four agencies. The Department of Revenue still runs its taxes on ITAS, a mainframe system Andersen Consulting built and the state put into service in 1994, plus Oracle's PSRM, implemented in 2013 for a few smaller taxes. Its first attempt to replace ITAS, CGI's Tax Information Management System, was stopped in January 2014 after about $63.8 million had been paid to CGI. The second attempt, estimated at $158.3 million, posted its request for proposals in March 2025. On October 23, 2026 the Department announced that it had selected FAST Enterprises and its GenTax system after a competitive RFP; no contract amount was announced, and the Department's August 2026 report to the General Assembly put full implementation at December 2031. Unemployment insurance is newer: benefits run on SCUBI, a Capgemini system shared with South Carolina since September 2018, and employer taxes on NCSUITS, built by Sagitec and live since November 2023. North Carolina has no state paid family and medical leave program.

Who administers what

Every fact links to its source and carries a label: Public record Vendor claim Press / secondary

What the state has spent

Contract totals are the approved ceilings or current contract values the sources state, not money paid, and they are added up only where a plain contract figure exists. The yearly average spreads each system's payments over the years they cover (marked p), or, where no payment data was found, its contract total over the contract term (marked c); systems with neither are left out; it is an estimate of the yearly cost, not a reported figure. Payments to date and project budgets or estimates are added up in their own tiles, from the figures shown in the table; the three kinds of figure overlap and are never added together. Follow each system below for its sources.

Portals practitioners use

Leadership and contacts

Checked Oct 30, 2026. People change roles often; confirm on the agency's site before relying on a name.

Chain of command

• Voters
  • Governor: Josh Stein
    • Secretary of Revenue: McKinley Wooten, Jr. North Carolina Department of Revenue
    • Secretary of Commerce: Lee Lilley North Carolina Department of Commerce, Division of Employment Security
    • Secretary of Health and Human Services: Dr. Devdutta Sangvai North Carolina Department of Health and Human Services, Child Support Services
  • Secretary of State: Elaine F. Marshall North Carolina Department of the Secretary of State

Employer account numbers

Checked Oct 24, 2026.

Two agencies issue North Carolina employer numbers: the Department of Revenue (income tax withholding, registered on Form NC-BR or online) and the Department of Commerce's Division of Employment Security (unemployment insurance, in NCSUITS). North Carolina has no state paid family or medical leave or disability insurance program with its own employer account.

Layout: 9 is a digit, A is a letter, other characters are shown as the agency writes them. No real account numbers appear on this site.

Employer tax ID numbers for every state researched

Unemployment insurance tax

Checked Nov 3, 2026. North Carolina Department of Commerce, Division of Employment Security (DES)

North Carolina's taxable wage base is $34,200 for 2026, up from $32,600 in 2025; it is indexed to half the State's average yearly insured wage, and the 2027 figure was not yet published. A new employer pays 1.0%, and 2026 experience rates run from 0.06% to 5.76% on a 1.9% base rate. A 20% surtax applies only in a year after the trust fund falls below $1 billion, and it is not FUTA certified.

Taxable wage base

2026: $34,200
Indexed. N.C.G.S. 96-9.3: the greater of the FUTA taxable wage base or 50% of the average yearly insured wage (the average weekly wage on the computation date times 52), rounded to the nearest $100; DES sets it each calendar year. DES's table: $26,000 (2021), $28,000 (2022), $29,600 (2023), $31,400 (2024), $32,600 (2025), $34,200 (2026). source Public record

New employer rate

2026: 1% Standard beginning rate under N.C.G.S. 96-9.2(b); the rate can change after the first two years, once the account has been chargeable with benefits for at least 12 calendar months ending July 31. No separate construction or out-of-state rate was found. source Public record

Rate range

2026: 0.06% to 5.76%, Base rate 1.9% minus the Employer's Reserve Ratio Percentage (reserve ratio times 0.68), because the trust fund was above 1.25% of total insured wages N.C.G.S. 96-9.2(c) sets the base rate at 2.9% when the fund is 1% of insured wages or less, 2.4% above 1% to 1.25%, and 1.9% above 1.25%. The reserve ratio uses the last three fiscal years of payroll as of July 31. 2027 rates were not yet published. source Public record

Other assessments

• Surtax for the Unemployment Insurance Reserve Fund (N.C.G.S. 96-9.7): 20% of contributions, only in a calendar year after the State's trust fund account was under $1 billion on September 1 of the prior year (2026) does not count toward the FUTA credit source Public record

Rate notices

The Unemployment Tax Rate Notice (Form NCUI 104) is posted to the NCSUITS inbox each November or December; 2026 rate documents were posted November 17, 2025.. Protest: In writing before May 1 of the year the rate applies (April 30, 2026 for 2026 rates), through the NCSUITS inquiry feature, by fax or by mail, signed by an owner, partner or corporate officer. source Public record

Voluntary contributions

Allowed, For 2026 rates, December 17, 2025 (DES's 2026 table). The statute credits a voluntary contribution made within 30 days after the date on the annual rate notice as of the previous July 31. source Public record

Filing

Quarterly Tax and Wage Report
Due: April 30, July 31, October 31 and January 31.
Electronic filing: Required for employers or agents reporting wages for 10 or more employees.
NCSUITS source Public record

FUTA credit reduction

None. Not on the U.S. Department of Labor's list of states with a Title XII advance balance on January 1, 2026 (only California and the Virgin Islands). North Carolina's credit reductions were for 2011 to 2014. source Public record

DES's voluntary contribution answer still gives a January 15, 2025 deadline for 2025 rates, which differs from the December 17, 2025 date in its 2026 table; the table for the current year is used here. The U.S. Department of Labor's Significant Provisions of State UI Laws, effective July 2026, gives the same 2026 figures: $34,200, 0.06% to 5.76%, new employer 1.00%.

Not confirmed: The 2027 taxable wage base and rate notice dates (DES posts the notices in November or December). Whether the 20% surtax applies in 2026: DES gives only the rule (fund under $1 billion on September 1 of the prior year), not the year's status. Governor's FY2026-27 budget recommendation for a workforce training assessment tied to UI taxes (seen only in a search result from osbm.nc.gov; not read, and not shown to be enacted).

Unemployment insurance tax in every state

Income tax withholding

Checked Nov 3, 2026

Each new employee completes Form NC-4, NC-4 EZ or NC-4 NRA; without one the employer withholds as if the employee were single with no allowances. Supplemental wages may be withheld at a flat 4.09% for 2026 when tax is withheld from regular wages, or by the aggregate method. North Carolina has no reciprocity: a nonresident is withheld on for any wages for services performed in the state, the Department places the work at the physical location where the services are performed, and there is no local income tax.

Withholding certificate

Form NC-4, Employee's Withholding Allowance Certificate (or NC-4 EZ; NC-4 NRA for nonresident aliens). When a new employee is hired; the certificate takes effect with the first payment of wages after it is filed and stays in effect until a new one is furnished, except that an exemption from withholding must be renewed each year. With no certificate on file: If the employee does not give a completed NC-4, NC-4 EZ or NC-4 NRA, withhold as if the employee is single with no withholding allowances. Nonresident aliens always use the single filing status. A military spouse who meets the Servicemembers Civil Relief Act conditions gives the employer Form NC-4 EZ with line 4 checked, with a copy of the spousal military ID and the servicemember's latest leave and earnings statement, and must submit a new NC-4 EZ each year. On February 16 the employer begins withholding for an employee who claimed exemption the prior year and has not filed a new certificate, as if single with no allowances. source Public record

Supplemental wages

2026: 4.09%. If tax is withheld from regular wages: withhold a flat 4.09 percent, or add the supplemental and regular wages for the most recent payroll period, compute the tax on the total and subtract the tax already withheld. If no tax was withheld from regular wages, use the aggregate method. source Public record

Withholding tables

NC-30, 2026 Income Tax Withholding Tables and Instructions for Employers (Web 11-25) (2026). Wage bracket tables by filing status and payroll period, plus the percentage and annualized wages methods, at the 3.99% rate for tax year 2026 under Session Law 2023-134. No 2027 NC-30 was published at the time of checking.

Reciprocity

No reciprocal agreements. North Carolina has no reciprocal agreement: any relief from double withholding for a nonresident employee must be granted by the employee's state of residence. source Public record

Nonresidents working here

From the first day: a nonresident employee is subject to North Carolina withholding on any part of the wages paid for performing services in the state. Convenience of the employer: no: the Department says the location of the services is determined by the physical location at which the employee performs them. NC-30, Sections 4 and 5. source Public record

Deposits and returns

• quarterly: Average of less than $250 of North Carolina withholding a month. Due Form NC-5 and payment by the last day of the month after the quarter
• monthly: Average of at least $250 but less than $2,000 a month. Due Form NC-5 and payment by the 15th of the following month; December is due January 31
• semiweekly: Average of $2,000 or more a month. Due Payment (with Form NC-5P) at the same time as the federal deposit for the same wages; North Carolina did not adopt the federal next-day rule for $100,000, so state tax is due by the normal semiweekly date. Form NC-5Q quarterly reconciliation by the last day of the month after the quarter, with 10 more days if all payments were made.

Form NC-5, Withholding Return (quarterly and monthly filers); Form NC-5P payment voucher and Form NC-5Q quarterly return (semiweekly filers). The initial frequency comes from the expected average monthly withholding on Form NC-BR, and an employer stays on it until the Department authorizes a change in writing. The NC-3 annual reconciliation is covered on the information returns page. Returns may be filed and tax paid online (bank draft or card) or by ACH credit or debit after enrolling with the Department; the NC-30 read does not state an electronic payment mandate. NCDOR File and Pay source Public record

Annual reconciliation

NC-3, due January 31. With the W-2 and 1099 filing rules

Recent and coming changes

• Jan 1, 2026 The individual income tax rate is 3.99% for taxable years beginning after 2025 (4.25% in 2025), under Session Law 2023-134; the 2026 NC-30 tables and the 4.09% supplemental rate reflect it. source Public record
• Jan 1, 2027 Rate reduction trigger: if total General Fund revenue for fiscal year 2025-2026 exceeds $33,042,000,000, the rate for taxable years beginning in 2027 drops by one-half point (to 3.49%); a further trigger of $34,100,000,000 for fiscal year 2026-2027 applies to 2028 (G.S. 105-153.7(a1)). source Public record

No local income tax is described in the NC-30. The NC-3 annual reconciliation and W-2 and 1099 filing are on the information returns page. North Carolina State Lottery winnings of $600 or more are withheld at 3.99 percent.

Not confirmed: Whether the fiscal year 2025-2026 revenue trigger was met (reported by the Office of State Controller in August 2026), which would make the 2027 rate 3.49%, was not confirmed from a primary source; a legislative revenue forecast from May 2026 projected that it would be met. The electronic funds transfer mandate threshold for withholding (in G.S. 105-241) was not read. Whether a federal W-4 may be used in place of the NC-4 is not stated in the NC-30 read. The NC-4 form itself could not be saved (the document's download link returned 404); its contents rest on the NC-30.

Withholding rules in every state

Credits for other states' taxes and part-year residents

Checked Nov 3, 2026

North Carolina residents claim the credit for income tax paid to another state or country on Form D-400TC, Part 1 (line 7a, carried to Form D-400 line 16), limited to the lesser of the net tax paid there or the North Carolina tax times the share of resident-period income taxed by the other state. A part-year resident is taxed on a taxable percentage: Schedule PN divides income received while a resident or from North Carolina sources by total income (an allocation and proration), and that percentage on Form D-400 line 13 is applied to taxable income. Nonresidents get no credit, and North Carolina is an associate member of the Multistate Tax Commission.

Residents: credit for tax paid to other states

Form D-400TC, Part 1, Credit for Income Tax Paid to Another State or Country (the Out-of-State Tax Credit Worksheet when more than one state or country). Line: Form D-400TC line 7a, included in Form D-400 line 16 (tax credits). Limit: The lesser of the net tax paid to the other state or country on the doubly taxed income (line 6) or the North Carolina tax (Form D-400 line 15) times the share of resident-period income taxed by the other state (lines 1 to 5). Covers: Income tax paid to another state or country on income taxed by North Carolina for a period of North Carolina residence and earned in or derived from sources in the other state or country, including tax on the taxpayer's share of S corporation income whether the other state taxes it at the individual or the corporate level. No: no credit for income taxes paid to a city, county or other political subdivision, or to the federal government. Foreign taxes: Yes: tax paid to another country qualifies on the same terms as another state. Pass-through entity taxes: Handled by a deduction rather than the credit: a resident owner deducts the distributive share of pass-through entity income not attributable to North Carolina that was included in income reported to another state or the District of Columbia and subject to an entity-level income tax (Schedule S line 38b). S corporation tax paid to another state is included in the credit. Attach: A copy of the return filed with the other state or country and proof of payment (a copy of a check, receipt or other proof); for S corporation tax, a schedule showing the corporation's tax and the shareholder's pro rata share. A withholding statement alone is not enough. Use a separate worksheet for each state or country. 2025 Form D-401 instructions, Form D-400TC Part 1. source Public record

Part-year residents: income while a nonresident

Allocated or prorated On Schedule PN, Column A is income from all sources and Column B is income from North Carolina sources or received while a North Carolina resident. Column B over Column A (as modified by North Carolina adjustments) is the taxable percentage, and North Carolina taxable income is the full-year amount times that percentage. Form D-400 with Schedule PN, Part-Year Resident and Nonresident Schedule (and Schedule PN-1 when needed). Line: Schedule PN line 24 (percentage) entered on Form D-400 line 13; Form D-400 line 14 is line 12b times that percentage. source Public record

Part-year residents: credit for the period of residence

Available. The credit is allowed when income is taxed by North Carolina for a period during which the taxpayer was a legal resident and the same income is taxed by another state or country; line 1 of the worksheet is income from all sources while a resident of North Carolina. Form D-400TC, Part 1. source Public record

Nonresidents: reverse credit

No. Nonresidents are not entitled to the credit; they pay North Carolina tax on the taxable percentage of income from North Carolina sources. source Public record

Local income taxes

Not applicable: no credit is allowed for income taxes paid to a city, county or other political subdivision. source Public record

Multistate Tax Compact

Associate member. source Public record

Other interstate rules

• A part-year resident who is a partner in a partnership doing business in North Carolina and other states prorates the partnership income between the periods of residence and nonresidence by the number of days in each period. source Public record

North Carolina has no reciprocal wage agreement (see the withholding data).

Not confirmed: Whether North Carolina has adopted UDITPA or the Compact apportionment article was not checked against the statute. The Form D-400TC form itself was not saved (the URL tried returned 404); the facts come from the D-401 instructions, which include the worksheet.

Multistate rules in every state

Business return deadlines and annual reports

Checked Nov 4, 2026

Corporations file one franchise and income tax return, Form CD-405, by the 15th day of the fourth month after the income year (April 15, 2026 for calendar 2025); for tax years beginning in 2025 the extension is seven months, automatic with a federal extension or by Form CD-419. S corporations (CD-401S) and partnerships (D-403) are also due the 15th day of the fourth month. Business corporations, LLCs, LLPs and LLLPs file an annual report with the Secretary of State: corporations and LLPs by the 15th day of the fourth month after their fiscal year ends ($25 on paper or $18 online for a corporation, $200 for an LLP), and LLCs by April 15 ($200).

Corporate return

Franchise tax. Form CD-405, C Corporation Tax Return (franchise and corporate income tax on one return). Due: The 15th day of the fourth month following the close of the income year (G.S. 105-130.17). For tax year 2025: Apr 15, 2026. Fiscal years: An income year ending on a day other than the last day of a month is deemed to end on the last day of the nearest calendar month. Tax-exempt nonprofits reporting unrelated business income file by the 15th day of the fifth month; certain foreign corporations by the 15th day of the seventh month. source Public record

Corporate extension

Federal extension accepted. Seven months from the original due date for tax years beginning on or after January 1, 2025 (six months for earlier years). Automatic with a federal extension (certify it on the return); otherwise Form CD-419, Application for Extension for Franchise and Corporate Tax, by the statutory due date. The extension does not extend the time to pay the franchise or income tax or the time when the failure to pay penalty attaches (G.S. 105-263).

S corporations

Form CD-401S, S Corporation Tax Return (franchise and income tax). Due: The 15th day of the fourth month following the close of the income year (the C corporation due date). For tax year 2025: Apr 15, 2026. Seven months: automatic with a federal extension (fill in the Federal Extension circle on Form CD-401S), or apply on CD-419 by the original due date. The extension does not extend the time to pay. source Public record

Partnerships

Form D-403, Partnership Income Tax Return. Due: On or before the 15th day of the 4th month following the end of the partnership's tax year (April 15 for a calendar year; next business day after a weekend or holiday). For tax year 2025: Apr 15, 2026. Automatic with a federal partnership extension (fill in the Federal Extension Yes circle on Form D-403); otherwise Form D-410P by the original due date. No payment is needed to get the extension, but it does not extend the time to pay. source Public record

Individuals

Form D-400. For tax year 2025: Apr 15, 2026. Automatic when a federal extension is granted (certify it on the State return); otherwise an extension application to the Department. The extension does not extend the time to pay. source Public record

Annual report

Filed with the North Carolina Secretary of State through File an annual report (Secretary of State).

Professional entities formed under Chapter 55B are excluded. Nonprofit corporations and limited partnerships (other than LLLPs) are not among the entities the Secretary of State names as filing annual reports. The report is due whether or not the company is conducting business. Licensed charities renew their solicitation license each year (on the start-up planner).

Recent and coming changes

• Jan 1, 2025 The corporate franchise and income tax extension (CD-405 and CD-401S) is seven months for tax years beginning on or after January 1, 2025, up from six months. source Public record

The franchise tax is reported on the same return as corporate income tax, so the corporate tax is listed as franchise tax. The pass-through entity tax is covered separately.

Not confirmed: The D-410P extension length for partnerships is not stated in the saved D-403 instructions. The D-400 instructions were not saved; the individual date and extension rest on G.S. 105-155 and 105-263. No late filing fee for Secretary of State annual reports was found in the statutes read. Tax year 2026 instructions are not yet published; the 2025 CD-405 instructions note the 2026 form was not yet available.

Deadlines and annual reports in every state

Electronic payment, penalties and interest

Checked Nov 4, 2026

North Carolina requires electronic payment by letter once a business tax liability reaches $240,000 in a 12-month period (an average of $20,000 a month for that tax), and corporations that must pay federal estimated tax electronically must do the same for state estimated tax. The late filing penalty is 5% a month up to 25%, and the late payment penalty is a flat 5% of the tax; both can apply in the same month. Interest is 7% through December 31, 2026 and 8% for January 1 to June 30, 2027.

Interest on unpaid tax

On or before June 1 and December 1 each year the Secretary sets the rate for the six months beginning July 1 and January 1, considering current market conditions and the federal rate under the Code. If no new rate is set, the old rate continues. The rate may not be less than 5% or more than 16% a year, and the same rate applies to assessments and overpayments. Compounding: No: interest accrues only on the principal of the tax and not on any penalty. N.C. Gen. Stat. 105-241.21. source Public record

When tax must be paid electronically

• Other: any business tax for which the Department sends notice (sales and use, withholding, corporate estimated, alcoholic beverage, tobacco, motor fuel, insurance premium and others): Business tax liability of at least $240,000 in a 12-month period; by statute, an average of at least $20,000 a month in required payments of that tax, applied separately to each tax and reviewed every 12 months. Methods: ACH credit or ACH debit batch; any of the Department's electronic payment methods (including eServices bank draft) satisfies the requirement. ACH credit and ACH debit batch require an authorization agreement (EFT-100C for ACH credit) and a confirmation letter; payments through other eServices need no enrollment. Taxpayers are notified by letter. Penalty for paying another way: Making a payment in a form other than the form the Secretary requires: 5% of the tax, at least $1 and no more than $1,000. source Public record
• Corporate: A corporation required under the Internal Revenue Code to pay federal estimated corporate income tax electronically must pay its state estimated corporate income tax electronically. Methods: Electronic funds transfer. Penalty for paying another way: 5% of the tax for paying in the wrong form, $1 to $1,000. source Public record
• Other: prepayment of sales and use tax and other prepayment taxes (G.S. 105-116 and 105-164.16): Any taxpayer required to prepay tax. Methods: Electronic funds transfer. Penalty for paying another way: 5% of the tax for paying in the wrong form, $1 to $1,000. source Public record

Penalties

Late filing

Covers: Any return (income, franchise, sales and use, withholding and others). 5% of the net tax due for each month or part of a month the return is late, determined with regard to extensions. Maximum: 25%. N.C. Gen. Stat. 105-236(a)(3). source Public record

Late payment

Covers: Any tax not paid when due, without intent to evade. 5% of the tax not paid by the original due date (for taxes assessed on or after January 1, 2023). Not charged on tax shown on an amended return paid with the return, or on a proposed assessment paid within 45 days. With an extension, charged if less than 90% of the tax was paid by the original due date. Maximum: 5% (a flat penalty). Both the late filing and late payment penalties can be applied for the same month; a late return with net tax due gets both at once. N.C. Gen. Stat. 105-236(a)(4). source Public record

Estimated tax, individuals

Charged as interest. Interest at the G.S. 105-241.21 rate on each underpaid installment, from its due date to the earlier of April 15 or payment. Safe harbor: The required annual payment is the lesser of 90% of this year's tax or 100% of last year's tax (if last year was 12 months and a return was filed), in four 25% installments, with an annualized income option. No interest if this year's tax after withholding is less than $1,000, or if there was no tax liability for the preceding year. Filing and paying in full by January 31 removes interest on the fourth installment. Farmers and fishermen use 66 2/3% with one installment. Form: Form D-422, Underpayment of Estimated Income Tax by Individuals. source Public record

Estimated tax, corporations

Charged as interest. Interest at the rate on assessments under G.S. 105-241.21 on each installment shortfall measured against 90% of the year's tax. Safe harbor: No interest if payments equal the least of the prior year's tax (for a 12-month prior year return), the current rates applied to the prior year's facts, or 90% of the tax on annualized income; large corporations as defined in IRC 6655 cannot use the two prior year methods. Form: Form CD-429B (C corporations); Form NC-429 PTE for taxed partnerships and taxed S corporations. source Public record

Penalty relief

The Secretary may waive penalties under the Department's Penalty Waiver Policy (updated July 8, 2025), which has three types: good compliance, automatic (death, serious and sudden illness, or natural disaster, generally for returns and payments due within 3 months of the event) and special circumstances. Interest generally cannot be waived. A taxpayer who disputes a penalty, rather than asking for a waiver, must request Departmental review within 45 days of the proposed assessment. First-time or good history: Good compliance waiver: one penalty waiver for each tax type every three years, if all returns are filed, all tax and interest are paid, the mistake is not a repeat, and requested documents are provided. It does not cover a late payment penalty on trust taxes (sales tax and withholding) collected but not remitted. How: Form NC-5500, Request to Waive Penalties (Form NC-5501 for informational return penalties), submitted online or by mail to PO Box 1661, Raleigh, NC 27602-1661. Time limit: To get back a penalty already paid, the request must generally be made by the later of three years after the return's due date or two years after the tax was paid. source Public record

Other penalties

• Bad check or failed electronic funds transfer. 10% of the check or transfer, at least $1 and no more than $1,000. source Public record
• Paying in a form other than the form required (for example, not paying electronically when required). 5% of the tax, at least $1 and no more than $1,000. source Public record
• Informational return filed late (including withholding and 1099 information returns). $50 a day, up to $1,000; $200 for not filing in the prescribed format. source Public record
• Negligence; large tax deficiency. 10% of the deficiency due to negligence; 25% of the deficiency when individual taxable income is understated by 25% or more of gross income (or any other tax is understated by 25% or more). source Public record
• Fraud. 50% of the total deficiency. source Public record
• Frivolous return. Up to $2,000. source Public record
• Collection assistance fee. 20% of tax, penalty and interest not paid within 60 days after it becomes collectible, unless an installment agreement is entered first. source Public record

Recent and coming changes

• Jan 1, 2027 The interest rate rises from 7% to 8% for January 1 to June 30, 2027. source Public record
• Jul 1, 2030 The late payment penalty changes from a flat 5% to 2% a month, up to 10%, for tax assessed on or after July 1, 2030. S.L. 2026-31 (section 5.6) moved the start from July 1, 2027 to July 1, 2030; the Department's penalties page still says July 1, 2027. source Public record

Interest on an income or franchise tax refund starts 45 days after the latest of the filing date, the unextended due date or the overpayment date; for other taxes, 90 days after the tax was paid. Withholding deposit schedules are on the withholding page.

Not confirmed: The Department's Penalties and Fees Overview page still gives July 1, 2027 for the new late payment penalty, which S.L. 2026-31 moved to July 1, 2030.

Electronic payment, penalties and interest in every state

Disaster relief rules

Checked Nov 4, 2026

North Carolina follows IRS disaster postponements automatically by statute, but as penalty relief rather than an extension: the late license, late filing, late payment and informational return penalties may not be assessed for the period the IRS disregards under section 7508A for a presidentially declared disaster. Interest is still charged. The Department removes the penalties itself; a taxpayer assessed one in error files Form NC-5500 or NC-5501 with the disaster name at the top, or calls 1-877-252-3052.

When the IRS postpones deadlines

Follows IRS postponements automatically, for some or all taxes G.S. 105-249.2(b): the penalties in G.S. 105-236(a)(2), (3), (4) and (10)c. "may not be assessed for any period in which the time for filing a federal return or report or for paying a federal tax is disregarded under section 7508A of the Code because of a presidentially declared disaster." The period the IRS disregards applies only to the corresponding State return or payment. Presidentially declared disasters only (the meaning in section 1033(h)(3) of the Code), so IRS relief on a FEMA declaration. The Department applies it to the taxpayers the IRS identifies as affected: residents and businesses in the area, others whose records are there, recognized relief workers and visitors killed or injured (Hurricane Helene notice, Oct. 3, 2024). N.C. Gen. Stat. 105-249.2(b), as amended by S.L. 2026-31, s. 5.3. source Public record

Taxes covered

Every State tax: the relief follows the corresponding federal return or payment, and for State returns and payments with no federal counterpart (such as sales and use tax) the IRS period for individual income tax returns and payments applies. Penalties covered: failure to obtain a license, failure to file, failure to pay and failure to file an informational return. Not covered: Interest, which the Department says it cannot waive. Under the Helene notice, semiweekly withholding payers got relief only for payments due Sept. 25 to Oct. 9, 2024 made by Oct. 10, 2024, and payments on 2023 returns that were due before the disaster were not covered. source Public record

State-declared disasters

No statute ties relief to a governor's declaration, but the Department's Penalty Waiver Policy treats a natural disaster, such as a tornado or hurricane, or an accident such as a fire that destroyed property or records, as a reason for automatic waiver: for a disaster addressed in a memo from the Secretary or the Governor, for the period set in the memo; otherwise for 3 months after the event. Taxpayers outside the IRS area whose filing was prevented by the disaster can request a waiver on Form NC-5500 (natural disaster section) or NC-5501. source Public record

How to get relief

Automatic: the Department removes the qualifying penalties if the license is obtained, the return filed or the tax paid by the end of the IRS period. A taxpayer assessed a penalty in error submits Form NC-5500, Request to Waive Penalties, or Form NC-5501, Request for Waiver of an Informational Return Penalty, with the disaster name written at the top, or calls 1-877-252-3052. Form NC-5502 requests a waiver of interest, or interest and penalties. Penalties: Penalties only. The Department can waive interest only for taxes in a Chapter 7 or Chapter 13 bankruptcy; interest waivers for disaster victims have come from the General Assembly (for Hurricane Helene, S.L. 2024-51, s. 13.1, later extended to Sept. 25, 2025). source Public record

Where relief is posted

NCDOR Disaster Related Tax Relief

Other disaster tax rules

• G.S. 105-263(c), the automatic State extension for a taxpayer with an automatic federal extension, does not apply when the federal return is extended because of a presidentially declared disaster; disaster relief is the penalty bar in G.S. 105-249.2, not an extension. source Public record
• Hurricane Helene: a deduction for tax year 2024 (or 2023 by amended return) for an eligible timber casualty loss on 20 to 2,000 acres of North Carolina timberland in a county in FEMA-4827-DR (added by S.L. 2026-31, Part I). source Public record
• Hurricane Helene: the General Assembly ordered interest waived on franchise, corporate and individual income tax (including estimated tax) and withholding underpayments for taxpayers in the listed counties; S.L. 2026-31, s. 1.7 moved the end date from May 1, 2025 to Sept. 25, 2025. source Public record

Recent changes

• Jul 2, 2026 S.L. 2026-31, s. 5.3 rewrote G.S. 105-249.2(b) to speak of the period "disregarded" under section 7508A instead of the time "extended", and retitled the section "Relief for certain military personnel or persons affected by a presidentially declared disaster". Part 5 is effective when it became law; the act was approved July 2, 2026. source Public record

The relief is a bar on penalties, not a postponement: interest runs from the original due date unless the General Assembly waives it.

Not confirmed: What S.L. 2023-12, s. 1.7(a) changed in G.S. 105-249.2 was not read. No NCDOR rule on sales tax refunds or property tax relief for disaster rebuilding was looked for. The Important Notice of July 22, 2026 (additional interest relief for Hurricane Helene) is listed on the relief page but was not read.

Current disaster relief and every state's rules

Federal tax picture

From the IRS's own statistics: the Data Book for fiscal 2025 and Statistics of Income for tax year 2023. Every state

Collected by type: Individual income tax withheld and FICA tax $93.3B; Individual income tax payments and SECA tax $23.9B; Business income taxes $8.4B; Estate and trust income tax $840M; Excise taxes $804M; Estate tax $424M; Unemployment insurance tax $237M; Railroad retirement tax $53M; Gift tax $14M. source Public record

Filers moving in and out, 2022 to 2023

170,751 returns (295,243 people) with $13.7B of income moved in from other states; 131,633 returns (226,135 people) with $9.8B moved out, a net gain of $3.9B in income. source Public record

Minimum wage

Checked Nov 3, 2026. N.C. Department of Labor

North Carolina's minimum wage is $7.25 an hour: the statute sets the higher of $6.15 or the federal minimum wage, so it moves only with the federal rate and no change is set for 2027. Tipped employees must be paid at least $2.13 in cash. Local governments are preempted from setting wage levels for private employers.

Rate

$7.25 (2026) G.S. 95-25.3(a): the higher of $6.15 or the federal minimum wage. Agricultural and domestic employees are under the federal minimum wage.
$7.25 (2027) No change scheduled; follows the federal rate. source Public record

How it is set

Fixed in law: The higher of $6.15 or the federal minimum wage under 29 U.S.C. 206(a)(1), as it may change G.S. 95-25.3(a) source Public record

Tipped employees

2026: cash wage $2.13, tip credit $5.12 Tips count only up to the federal 3(m) amount, with advance notice, the employee keeping all tips and certified tip records; tip pools may not take more than 15% of an employee's tips.
2027: cash wage $2.13, tip credit $5.12 No change scheduled. source Public record

Youth and training wages

$6.50. Full-time students, learners, apprentices and messengers as defined under the FLSA: 90% of the state rate, rounded to the lowest nickel ($6.50 at $7.25, computed). source Public record

Local minimum wages

Not allowed: state law preempts them source Public record

Poster

Wage and Hour Notice to Employees (North Carolina Workplace Labor Laws Posters, free from NCDOL)

G.S. 95-25.1(d) preempts local rules on private employers' wage levels, hours, benefits and leave, with exceptions such as a local government's own employees. The Commissioner may by regulation set rates of not less than 85% for certain economically disadvantaged workers and for seasonal food service establishments (G.S. 95-25.3(d) and (e)).

Not confirmed: The effective date of the $7.25 rate is not stated on the NCDOL page or in G.S. 95-25.3; it follows the federal rate. The NCDOL poster PDF itself was not downloaded; only the poster requirements page was read.

Minimum wage in every state

Paid family and medical leave

Checked Nov 3, 2026. No program

North Carolina has no state paid family and medical leave or temporary disability insurance program funded by payroll contributions, so there is no rate, wage base or employer filing for 2026 or 2027. The NC Paid Family Leave Insurance Act (S 480 and H 499, 2025 to 2026 session), which would create General Statutes Chapter 96A, was referred to the Rules committees on March 26, 2025, the last action shown.

Recent and coming changes

• S 480 / H 499, the NC Paid Family Leave Insurance Act (new Chapter 96A), referred to the Senate and House Rules committees; no later action shown. source Public record

Not confirmed: No North Carolina agency page states that North Carolina has no paid leave program; status none rests on the absence of any program found. No North Carolina law authorizing private paid family leave insurance policies was found; this was not searched for in Chapter 58.

Paid leave in every state

Sick leave and time off

Checked Nov 5, 2026. No paid sick leave law

North Carolina does not require private employers to give paid sick leave or paid leave for any reason, and since July 1, 2023 the Wage and Hour Act preempts local rules on employee benefits and leave (G.S. 95-25.1(d)). There is no state family and medical leave law for private employers, so the federal FMLA applies. Earned vacation must be paid at separation unless the employer gave advance written notice of a policy under which it is forfeited (G.S. 95-25.12).

Paid sick leave

No state law requires private employers to give paid sick leave.

Local laws: The Wage and Hour Act supersedes and preempts any ordinance, regulation, resolution or policy of a unit of local government or other political subdivision that imposes a requirement on an employer pertaining to compensation of employees, such as wage levels, hours of labor, payment of earned wages, benefits, leave, or well-being of minors in the workforce. It does not apply to a local government's own employees, certain economic development incentives, federal community development block grant requirements, or programs under G.S. 160D-1311. Added by S.L. 2023-134 (HB 259), section 5.9(a), effective July 1, 2023; the same section bars cities and counties from requiring a private contractor to give paid sick leave as a condition of bidding (G.S. 160A-20.1(a), 153A-449(a)). (G.S. 95-25.1(d); G.S. 160A-20.1(a); G.S. 153A-449(a)) source Public record

Family and medical leave

North Carolina has no state family and medical leave law for private employers; it relies on the federal FMLA. The four hours a year of school involvement leave (G.S. 95-28.3) is listed under other leave.

Vacation and PTO at the end of employment

Paid unless policy says no No employer must offer vacation, but an employer that does must give the time off or pay in lieu of it according to its policy or practice. A policy or practice under which vacation time or pay is lost or forfeited binds only employees notified of it under G.S. 95-25.13; employees not notified may not lose it. Final wages are due on or before the next regular payday. The Department of Labor says earned vacation cannot be forfeited without a written forfeiture clause, that even with one the employee may still be owed it depending on its terms and the reason for separation, and that sick leave need not be paid at termination unless the policy or practice provides for it. (G.S. 95-25.12; G.S. 95-25.7; G.S. 95-25.13) source Public record

"Use it or lose it" policies: allowed.

Other leave the law requires

What was checked: Read on the General Assembly's site: G.S. 95-25.1 and Section 5.9 of S.L. 2023-134 (local preemption), S.L. 2017-4 (HB 142, which repealed HB 2 of 2016 and barred local ordinances regulating private employment practices only until December 1, 2020), G.S. 95-25.7, 95-25.12 and the Department of Labor's wage benefits page (vacation), 95-28.3 (school involvement), 50B-5.5 (domestic violence), 166A-19.76 (volunteer responders), 127A-201 to 127A-203 (National Guard), 9-32 (jury), 15A-825 and 15A-841 (crime victims). The jury statute, G.S. 9-32, only bars discharging or demoting an employee for being called or serving as a juror, so it is not listed as leave. G.S. 15A-841 (employer intimidation of crime victims) was repealed by S.L. 2019-216, and G.S. 15A-825 only asks prosecutors to seek employer cooperation, so no crime victim leave is listed. No statute was found requiring private employers to give voting, bereavement, donation, pregnancy or holiday leave; the state paid leave page (data/paidleave/north-carolina.json) records that North Carolina has no paid family and medical leave insurance program. Firecrawl government index results did not report a creditsUsed figure.

Not confirmed: No North Carolina agency page says in so many words that private employers need not give paid sick leave; status none rests on the absence of any statute found and on the local preemption in G.S. 95-25.1(d). No statute was found requiring private employers to give time off to vote; the Board of Elections was not checked for guidance. Whether any city or county kept a paid leave rule for its own contractors after July 1, 2023 was not checked; G.S. 160A-20.1(a) and 153A-449(a) now bar requiring paid sick leave of bidders.

Federal law adds unpaid FMLA leave at employers with 50 or more employees and paid sick leave for federal contractors. Sick leave and time off in every state

Sales and use tax

Checked Nov 3, 2026

North Carolina's general state sales and use tax rate is 4.75%; counties and transit districts add local rates that the Department of Revenue collects on the same return, and Mecklenburg County's total rose to 8.25% on July 1, 2026. A remote seller must register and collect once its gross sales sourced to North Carolina exceed $100,000 in the previous or current calendar year (the 200-transaction test was repealed July 1, 2024); since July 2, 2026 a seller whose only connection is that threshold starts on the first day of the first month at least 60 days after crossing it.

State rate

4.75% N.C. Gen. Stat. § 105-164.4
Qualifying food items are taxed at 2%; some items are taxed at the 4.75% state rate only, and others at a 7% combined general rate. source Public record

Local taxes

Yes, collected by the state. County and transit sales and use taxes are reported to the Department of Revenue with the state tax, and a retailer collecting the state tax must collect the local use tax where a local sales tax does not apply (G.S. 105-164.8(c)). Mecklenburg County's total general rate is 8.25% from July 1, 2026 (4.75% state, 2.00% county, 0.50% transit, 1.00% additional county). The rate page lists current and historical state, local and transit rates. Rate lookup source Public record

Remote sellers

$100,000 (transaction count repealed Jul 1, 2024); counts gross: gross sales from remote sales sourced to North Carolina, including sales as a marketplace seller sales; previous or current calendar year. Since July 2, 2026, a retailer whose only basis for being engaged in business is the threshold is engaged in business, and must register and begin collecting, on the first day of the first calendar month at least 60 days after its gross sales exceed the threshold. A retailer that exceeded the threshold before July 2, 2026 must register and collect immediately. Session Law 2024-28, section 2.1, removed the 200-transaction test effective July 1, 2024. Session Law 2026-31, section 3.1, added the 60-day start, effective when it became law; NCDOR gives the date as July 2, 2026. source Public record

Marketplace facilitators

Must collect (Gross sales in excess of $100,000 sourced to North Carolina, including all marketplace-facilitated sales for all marketplace sellers, in the previous or current calendar year; the same 60-day start applies since July 2, 2026.) source Public record

Streamlined Sales Tax

Full member source Public record

Registration

Certificate of Registration (sales and use tax), None Register Register online or by mail (Form NC-BR). Remote sellers use the same registration, or the Streamlined Sales Tax registration system, which also has no fee. source Public record

Filing

• quarterly: total tax liability consistently less than $100 a month
• monthly: consistently at least $100 and less than $20,000 a month
• monthly with prepayment: consistently at least $20,000 a month; prepay at least 65% of the next month's liability with each monthly return

Due: Monthly: 20th day of the following month. Quarterly: last day of January, April, July and October.
Electronic filing: Required for monthly filers with prepayment (Forms E-500 and E-500T); the Department reviews each filer's frequency every year on a 12-month period ending March 31.
NCDOR Online File and Pay (Form E-500) source Public record

Certificates

Resale: Form E-595E, Streamlined Sales and Use Tax Agreement Certificate of Exemption (or the required data elements).. MTC certificate: accepted. Streamlined certificate: accepted
Exemptions: NCDOR's exemption certificates page lists the Streamlined certificate, the Purchaser's Affidavit of Export and the MTC Uniform Sales and Use Tax Certificate (Multijurisdictional). source Public record

Recent and coming changes

• Jul 2, 2026 Remote sellers and marketplace facilitators whose only basis for collecting is the $100,000 threshold start on the first day of the first month at least 60 days after crossing it (Session Law 2026-31, section 3.1). source Public record
• Jul 1, 2026 Mecklenburg County adds a 1.00% county sales and use tax; the total general rate there rises from 7.25% to 8.25%. source Public record

The 200-transaction repeal (July 1, 2024) is more than a year old but is recorded in transactionsRepealed.

Not confirmed: Dates North Carolina's economic nexus rule and marketplace facilitator rule first took effect were not on the pages read. Vendor discount: none was mentioned on the pages read; not confirmed either way. County rate range (other than Mecklenburg) was not copied; the rate page's tables load in collapsed sections. Whether electronic filing is required for filers other than prepayment filers was not confirmed.

Sales tax in every state

Credit card surcharges

Checked Nov 4, 2026. No state surcharge law

No North Carolina statute was found that allows, limits or bars a business adding a surcharge for credit card payments. The Department of Revenue says surcharges, including fees for using a credit card, are part of the sales price of an item subject to sales and use tax, whether or not separately stated. A 2025 House bill to cap card charges (H 13) has not passed the House.

The rule

No state law on credit card surcharges was found.

Cash discounts

No state law found.

Sales tax on the surcharge

Depends Sales and Use Tax Bulletins (January 2026), SUTB 3, part G: surcharges made by a retailer for a retail sale, whether separately stated or not, are part of the sales price of an item subject to sales and use tax; the examples include fees for using a credit card. So a card surcharge is taxable when the item sold is taxable. The accommodation bulletin separately lists credit card fees among charges taxable as part of the gross receipts from renting an accommodation. source Public record

What was checked: Searched the full text of General Statutes Chapters 14, 24, 25A, 53, 66 and 75 on ncleg.gov for "surcharge"; the hits were unrelated (sales tax rounding, credit card account disclosures, and G.S. 75-44 ticket price transparency, which covers mandatory fees for event tickets and does not mention card surcharges). House Bill 13 (2025-2026 session), "Charges for Credit & Charge Cards," was last re-referred to the House Rules committee on September 23, 2025 with no floor vote listed. Read the Department of Revenue's January 2026 Sales and Use Tax Bulletins.

Not confirmed: North Carolina Department of Justice (Attorney General) consumer guidance on card surcharges was not checked. Chapters other than those listed (for example Chapter 25, the Uniform Commercial Code) were not searched.

Federal law and the card networks' own rules apply in every state. Surcharge rules in every state

Pass-through entity tax

Checked Nov 3, 2026. Taxed pass-through entity (Taxed PTE) election: Taxed Partnership or Taxed S Corporation

S corporations and eligible partnerships can elect each year, by answering Yes to the Taxed PTE question on the front of a timely filed Form CD-401S or D-403, to pay North Carolina income tax at the entity level at the individual rate: 4.25% for 2025 and 3.99% for 2026. The election must be made by the due date including extensions, cannot be made on a late or amended return, and cannot be made or revoked after the return is filed. Owners do not get a credit: they deduct their share of the income taxed at the entity level on Form D-400 Schedule S.

Law

N.C. Gen. Stat. § 105-131.1A (S corporations); § 105-154.1 (partnerships); § 105-153.5(c3) (owner adjustments); rate in § 105-153.7. S.L. 2021-180 (SB 105), section 42.5; amended by S.L. 2023-12, S.L. 2023-134, S.L. 2024-1 and S.L. 2026-31. First tax year 2022. source Public record

Who can elect

Any S corporation with a valid federal S election that must file a North Carolina return, and any partnership (domestic or foreign partnership, or LLC classified as a partnership) that must file a North Carolina return. An entity that is not a PTE, or an investment partnership not required to file a North Carolina return, cannot elect. A partnership cannot elect if it is a publicly traded partnership described in IRC section 7704(c), or if at any time in the year it has a partner other than an individual, an estate, certain trusts, an organization described in IRC section 1361(c)(6), or an entity classified as a partnership or a corporation for federal income tax purposes. A partner that is a single member LLC owned by an individual and disregarded for federal purposes does not disqualify the partnership. Partners that are partnerships or corporations are allowed partners but their shares are left out of the Taxed Partnership's taxable income; the partnership still pays tax for nonresident partners under G.S. 105-154(d) unless Form D-403 NC-NPA is filed. Corporate partners were made eligible retroactive to taxable years beginning on or after January 1, 2022 (Directive TA-23-1). source Public record

Election

Answer Yes to the Taxed Partnership question (page 1 of Form D-403) or the Taxed S Corporation question (page 1 of Form CD-401S) on the timely filed North Carolina return. If the PTE does not answer Yes, it did not make the election. The entity. The election is for the tax year covered by the return and binds all owners. Deadline: By the due date of the North Carolina return, including extensions. An election on a late filed return is not valid, and the election cannot be made on an amended return after the original return is filed. Made each year. No. A PTE cannot make or revoke the election after its North Carolina return for the year is filed. source Public record

Rate

2026: 3.99% Same base as 2025. The statute sets 3.99% for taxable years beginning after 2025, subject to a revenue trigger that can lower the rate for 2027 and later years.
2025: 4.25% The individual income tax rate, applied to the sum of the owners' shares of the PTE's income or loss attributable to North Carolina, with North Carolina adjustments, for both resident and nonresident owners. Separately stated deductions are excluded, the section 164 state income tax deduction is added back, and shares of partners that are partnerships or corporations are left out. source Public record

Estimated payments

A Taxed PTE that reasonably expects a North Carolina income tax liability of at least $500 must pay estimated tax in the same manner as a C corporation, on Form CD-429 PTE (Taxed S Corporation) or Form NC-40 PTE (Taxed Partnership), in four equal installments. Interest applies to underpayments, but not for a year in which the entity was not a Taxed PTE in the preceding year; the corporate exceptions in G.S. 105-163.41(d) apply. The Department cannot transfer an individual's estimated payments to a Taxed PTE. 15th day of the 4th, 6th, 9th and 12th months of the taxable year (April 15, June 15, September 15 and December 15 for calendar year filers). source Public record

Return

Form D-403 (partnership) or Form CD-401S (S corporation), with an NC K-1 to each owner reporting whether the election was made and the owner's share of income included in the Taxed PTE's taxable income. Due 15th day of the 4th month after the end of the tax year (April 15 for calendar year partnerships); the S corporation return is also due the 15th day of the fourth month after the income year closes. A federal automatic extension is honored if the Federal Extension circle on page 1 is filled in; otherwise file Form D-410P (partnership) or Form CD-419 (S corporation, 7 months) by the original due date. An extension of time to file is not an extension of time to pay. source Public record

Owner credit

Not a credit. Each owner deducts from adjusted gross income its share of the Taxed PTE's income to the extent included in the Taxed PTE's North Carolina taxable income, and must add back its share of any loss so included, on Form D-400 Schedule S. The deduction is lost if the Taxed PTE does not pay the tax within 60 days of a notice of collection. Not applicable. Only the Taxed PTE, not its owners, can request a refund of an overpayment by the Taxed PTE. Nonresident owners' North Carolina share is taxed at the entity level and deducted on the owner's return in the same way. For partners that are partnerships or corporations, the partnership still pays tax for nonresident partners under G.S. 105-154(d) unless Form D-403 NC-NPA is filed. Credit for other states' PTET: A resident owner may deduct its share of PTE income not attributable to North Carolina that was included in the PTE's taxable income in another state or D.C. and subject to an entity level tax there (G.S. 105-153.5(c3)(1a) and (3a)), whether or not the PTE elected in North Carolina. A Taxed PTE is not entitled to a credit for taxes paid to another state. No list of states is given. source Public record

Recent and coming changes

• Jan 1, 2022 Partners classified as corporations for federal income tax purposes allowed in a Taxed Partnership, retroactive to taxable years beginning on or after January 1, 2022 (S.L. 2023-134). source Public record
• Jan 1, 2023 From taxable years beginning on or after January 1, 2023, a resident partner's share of income not attributable to North Carolina is no longer included in a Taxed Partnership's taxable income, and the election cannot be made or revoked after the return is filed. source Public record
• Jan 1, 2026 Rate falls with the individual rate: 4.25% for 2025 and 3.99% for taxable years beginning after 2025. For 2027 and later the rate drops by 0.5 point (to no lower than 2.49%) in any year after General Fund revenue exceeds the statutory trigger; the FY 2025-2026 trigger of $33,042,000,000 governs taxable years beginning in 2027. source Public record
• Jan 1, 2026 S.L. 2026-31 rewrote the credit rule for Taxed Partnerships for taxable years beginning on or after January 1, 2026, so the bar on passing credits through applies to partners described in G.S. 105-154.1(a)(1) through (4). source Public record

North Carolina's election has no sunset and the Department's documents read for this run say nothing about the 2025 federal law (Public Law 119-21). The 2025 Personal Taxes Bulletin's examples use calendar year 2025 returns filed in 2026.

Not confirmed: The 2027 rate depends on whether FY 2025-2026 General Fund revenue, as reported by the State Controller in August 2026, exceeded the $33,042,000,000 trigger. A legislative fiscal forecast (not a fact source) projects 3.49% for 2027; no NCDOR notice of the 2027 rate was found. The partnership extension length when Form D-410P is used was not stated in the text read; confirm in the D-410P instructions.

Pass-through entity tax in every state

Conformity to the 2025 federal tax law

Checked Nov 3, 2026. Business tax: corporate income tax

North Carolina is a static conformity state: Session Law 2026-31 (Senate Bill 595, approved July 2, 2026) moved its Code reference from January 1, 2023 to July 5, 2025, which brings in Public Law 119-21 except where the state decouples. The same law decoupled from domestic research expensing (section 174A) with an 80% addback recovered 25% a year over the next four years, and the long-standing 85% addbacks for bonus depreciation and for section 179 above $25,000 still apply. The tips, overtime, car loan and senior deductions do not reach the North Carolina return, which starts from federal adjusted gross income, and the General Assembly enacted no state version.

Follows the Code

Fixed date, Code as of Jul 5, 2025. N.C. Gen. Stat. section 105-228.90(b)(7), as amended by S.L. 2026-31, section 12.(a)
The Code is the Internal Revenue Code as enacted as of July 5, 2025, including provisions enacted by that date that take effect before or after it. Before S.L. 2026-31 the reference was January 1, 2023, so returns for 2025 and earlier filed under the old date may need to be amended (NCDOR notice of July 23, 2026). source Public record

Starting point

Individuals: federal adjusted gross income
Corporations: federal taxable income source Public record

Response to Public Law 119-21

Partly adopted. Session Law 2026-31 (Senate Bill 595), ratified June 25, 2026, approved by the Governor July 2, 2026. Years: Effective when it became law; the Code update reaches 2025 returns, and the research decoupling applies from 2022 (taxpayers who elect the federal retroactive treatment) or 2025 (all others)
NCDOR: to the extent North Carolina conforms, individuals must include in adjusted gross income and corporations in federal taxable income any federal change effective on or before July 5, 2025, including PL 119-21. The only new PL 119-21 decoupling is for domestic research expensing (new sections 105-130.5C and 105-153.6A). Session Law 2026-41 separately added a North Carolina itemized deduction for gambling losses from 2025. source Public record

Provision by provision

Other differences

• SALT cap: North Carolina itemized deductions allow mortgage interest plus real estate taxes up to a combined $20,000, which was not increased for 2025; after S.L. 2026-31 the property tax part follows section 164 as amended by PL 119-21 within that cap. source Public record
• Gambling losses: Session Law 2026-41 created a North Carolina itemized deduction for wagering losses allowed under section 165(d), for taxable years beginning on or after January 1, 2025. source Public record
• Corporate income tax rate is 2.25% for 2025 and 2% for 2026, falling to 0% after 2029 (section 105-130.3). source Public record

Guidance from the state

• Jul 23, 2026 Important Notice: Impact of Recently Enacted Laws on North Carolina Individual and Corporate Income Tax Returns
• Sep 11, 2026 FAQs Regarding Recent Session Law Changes (updated October 9, 2026)
• Feb 17, 2026 Impact Of Federal Law On NC Individual And Corporate Income Tax Returns (press release on a notice for 2025 returns, before the Code update)

Recent and coming changes

• NCDOR will publish 2026 returns and instructions reflecting S.L. 2026-31 and S.L. 2026-41 in January 2027. source Public record

The notice of July 23, 2026 was updated July 29 and October 9, 2026; the FAQs were updated October 9, 2026. Taxpayers whose 2025 or earlier North Carolina returns are affected should file or amend.

Not confirmed: The February 2026 NCDOR notice on 2025 returns under the old Code date (linked from the February 17, 2026 press release) was not read. No NCDOR statement specific to the PL 119-21 change to section 163(j).

Conformity in every state

Pay in job postings

Checked Nov 2, 2026. No state pay range law

North Carolina has no law requiring pay in job postings or pay disclosure to applicants. The Wage and Hour Act only requires an employer to tell each employee in writing, at hiring, the promised wages and the day and place of payment. State law also preempts local ordinances that impose requirements on employers about employee compensation, so cities and counties cannot add their own posting rules for private employers.

Salary history ban: No. No statute. Executive Order No. 93 (2019) bars state agencies under the Governor's oversight from requesting salary history from applicants; it does not reach private employers. Its current status was not confirmed. source Public record

What was checked: Checked on ncleg.gov: G.S. Chapter 95, Article 2A (Wage and Hour Act) section list and G.S. 95-25.13, which requires every employer to notify its employees in writing at the time of hiring of the promised wages and the day and place for payment, and to give written notice at least one pay period before changing promised wages. Nothing in the Article requires pay in postings or pay disclosure to applicants. G.S. 95-25.1(d) says the Article supersedes and preempts any local ordinance, regulation, resolution or policy that imposes a requirement on an employer pertaining to compensation of employees, except a local government regulating its own employees. No bill in the 2025 to 2026 session was found to have passed a chamber.

Not confirmed: The North Carolina Department of Labor wage and hour FAQ page tried returned 404; no agency guidance was read. Pending bills: no keyword search of 2025 to 2026 session bills on ncleg.gov was run; the conclusion that no bill passed a chamber rests on a web search only. Executive Order No. 93: the order's own PDF has no text layer, so the fact sheet was used; whether a later governor rescinded or replaced it was not checked.

Pay transparency rules in every state

For tax professionals

Checked Nov 3, 2026. North Carolina Department of Revenue (NCDOR)

North Carolina's power of attorney is Form GEN-58, which can be completed online and signed through DocuSign (processed within two business days) or uploaded, mailed or faxed; NCDOR prefers GEN-58 but accepts an alternative form, such as a federal Form 2848, if it has all the GEN-58 information and names North Carolina state tax matters. No North Carolina registration or licensing of paid preparers was found. NCDOR lists e-filing of the individual return (D-400) as available, not required, and no preparer e-file mandate was found.

Power of attorney

Form GEN-58, Power of Attorney and Declaration of Representative; GEN-58R revokes; GEN-58B for bankruptcy matters. Individuals. Any tax type administered by NCDOR, listed specifically ("all taxes", "state taxes" or "all types" are not accepted); any periods ended by the signing date, and future periods ending no later than 3 years from December 31 of the year filed. The representative can receive and inspect confidential tax information, which may include federal tax information, and perform any act the taxpayer can unless limited in Section 4. Electronic GEN-58 signed by all parties through DocuSign; or a signed paper form uploaded through the online application (recommended for faster processing), mailed to NCDOR, PO Box 25000, Raleigh, NC 27640-0005, or faxed to 919-715-1786. Processing: Electronic GEN-58: within two business days after all signatures are complete (the form page says up to 3 business days). In effect until NCDOR receives notice of revocation (Form GEN-58R, a re-signed GEN-58 marked Revoke, or a signed written statement). form source Public record

Federal Form 2848

Accepted with conditions NCDOR prefers Form GEN-58 but accepts an alternative form in its place if it includes all the information GEN-58 asks for and specifies that the taxpayer authorizes NCDOR to discuss North Carolina state tax matters with the named representatives. The FAQ does not name Form 2848. source Public record

Information only

Form GEN-53, Taxpayer Representative e-Business Center Access Authorization (view tax history and manage payment access in the eBusiness Center). Under the paid preparer policy, a preparer's signature on a return plus the checked box lets NCDOR discuss that return with the individual preparer (not the company): assessment and adjustment notices, missing information, refunds and payments. It does not cover audit activity or requests for review of proposed assessments or refund denials, which need a GEN-58, or federal tax information without the taxpayer's express written authority. On the return: Paid preparer box in the D-400 signature area: authorizes NCDOR to call the preparer, and the preparer to give missing information, ask about processing, refund or payments, receive copies of notices or transcripts related to the return on request, and respond to proposed notices of assessment or adjustment. source Public record

Preparer registration

No program found

Preparer ID on returns

The paid preparer must sign and date the return and should provide an identification number: FEIN, SSN or PTIN. No state preparer number. PTIN: accepted. source Public record

E-file mandate for preparers

None found: NCDOR's electronic filing table lists the D-400 individual income tax return as Available, not Required. Not applicable to individual returns. NCDOR requires electronic filing of the NC-3 annual withholding reconciliation and of sales and use tax returns for monthly filers with prepayment. source Public record

Transcripts and account records

Mail or fax a signed written request (name as on the return, current mailing address, SSN and tax year) to NC Department of Revenue, Customer Service, PO Box 25000, Raleigh, NC 27640, fax 919-733-5750. Requests cannot be made by telephone. Who can ask: Individuals, taxpayer representatives and qualifying third party requesters; a paid preparer authorized by the return check-box can receive copies of notices or transcripts related to that return on request. A copy of the North Carolina income tax return and other taxpayer records. Years available are not stated. Fee: No charge. Turnaround: Allow 30 days for a copy of a return; the records requests page says allow 16 days for delivery. Online for representatives: Not online for individual returns; the eBusiness Center shows filing and payment history for the business taxes it handles, for a representative authorized on Form GEN-53. request source Public record

Online access for professionals

NCDOR eBusiness Center. File and pay withholding (NC-5, NC-5P); pay alcoholic beverage, cigarette, other tobacco products, corporate estimated income and sales and use taxes; view filing and payment history. Individual returns are e-filed through approved software, not in the eBusiness Center. The representative first creates an NCID user ID and password, then submits Form GEN-53 (signed by the taxpayer and each representative) listing the tax types and period begin dates; a GEN-53 sent without an NCID is returned. source Public record

Practitioner line

Tax Practitioner Priority Service (TPPS): 919-754-2500, for technical and account-specific questions on corporate income and franchise, individual income, sales and use and withholding tax. E-File and Development Unit: 1-877-308-9103. TPPS 8:00 a.m. to 4:30 p.m. Eastern, Monday to Friday; E-File unit 8:00 a.m. to 5:00 p.m. source Public record

Recent and coming changes

• Nov 1, 2024 NCDOR began emailing courtesy copies of notices to registered POAs authorized to receive them; to get them, the taxpayer may need to resubmit GEN-58 with the representatives' email addresses and check the authorizing box. source Public record

The November 2024 change gives only the month; 2024-11-01 stands for November 2024. No North Carolina paid preparer registration law or program, and no preparer e-file mandate, was found in the NCDOR pages read; registration.required is false on that basis.

Not confirmed: Whether NCDOR names federal Form 2848 specifically as an acceptable alternative: the FAQ accepts any alternative form with the GEN-58 information. Who may be named on GEN-58 beyond "an individual": the GEN-58 instructions were not read. Years available for return copies: not stated. Whether NCDOR's planned GenTax system (FAST Enterprises, selected October 2026 per data/states/north-carolina.json) will add a practitioner portal: no NCDOR practitioner announcement found.

Rules for tax professionals in every state

Federal tax data sharing

18 IRS data-sharing agreements with agencies in North Carolina, for any purpose (TIGTA, as of March 2026) source Public record; FUTA credit certified to the IRS by North Carolina Department of Commerce, Division of Employment Security source Public record. How the IRS shares tax data with the states

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