North Carolina Capital Gains Tax Calculator
North Carolina taxes capital gains as ordinary income at the state level, which means a gain on selling shares, property or other investments is added to your other income and taxed using the North Carolina income tax brackets, with no separate preferential long-term rate like the federal system provides. This calculator estimates the North Carolina state tax on a capital gain by stacking the gain on top of your other taxable income and applying the sourced North Carolina Department of Revenue brackets for tax year 2025, then taking the difference. Enter your gain, your other annual taxable income and your filing status to see the state tax attributable to the gain and the effective rate on it. The result is the North Carolina state portion only; federal capital gains tax, which has separate short-term and long-term rates set by the IRS, is calculated separately. Because the gain stacks on your other income, the same gain is taxed at a higher rate the more you already earn. Some states provide specific exclusions or preferential treatment for certain gains; this tool uses the standard ordinary-income method and links the North Carolina Department of Revenue so you can confirm any special rule that applies to you.
North Carolina taxes capital gains as ordinary income. A $20,000.00 gain on top of $60,000.00 of other income (single) adds about $850.00 in North Carolina state tax, an effective rate on the gain of 4.25%.
How North Carolina taxes capital gains
North Carolina taxes capital gains as ordinary income, so the gain is added to your other income and taxed at the North Carolina bracket rates.
state tax on gain = state income tax on (other income + gain) - state income tax on (other income)
effective rate on gain = state tax on gain / gain x 100
North Carolina capital gains tax: frequently asked questions
How are capital gains taxed in North Carolina?
North Carolina taxes capital gains as ordinary income at the state level: the gain is added to your other taxable income and taxed using the North Carolina income tax brackets published by the North Carolina Department of Revenue. This calculator applies those brackets to your gain. Some states provide specific exclusions or rates for particular gains; confirm your situation with the North Carolina Department of Revenue.
How much state tax will I pay on a $20,000.00 capital gain in North Carolina?
Stacked on $60,000.00 of other income, a $20,000.00 gain adds about $850.00 of North Carolina state income tax for a single filer, an effective rate on the gain of 4.25%. Your figure depends on your total income and filing status; enter them above.
Does North Carolina have a separate long-term capital gains rate?
Most states, including the default treatment here, tax long-term and short-term capital gains at the same ordinary income rates, unlike the federal system which has preferential long-term rates. Any state-specific exclusion or preferential rate is set by the North Carolina Department of Revenue; this calculator uses the ordinary income method and links the source.
What is North Carolina's income tax rate for 2025?
North Carolina has a flat income tax rate of 4.25% for tax year 2025. The rate was 4.50% in 2024 and is scheduled to drop to 3.99% for tax years beginning in 2026. Additional reductions may apply for 2027 and later years based on revenue triggers in Session Law 2023-134. Source: North Carolina Department of Revenue, Tax Rate Schedules.
What is the standard deduction in North Carolina for 2025?
North Carolina's standard deduction for 2025 is $12,750 for single filers and married filing separately, $25,500 for married filing jointly and qualifying surviving spouses, and $19,125 for head of household filers. These amounts are set by G.S. 105-153.5 and differ from the federal standard deduction. Source: North Carolina General Statutes, G.S. 105-153.5(a)(1).
When did North Carolina move to a flat income tax rate?
North Carolina has been reducing and flattening its income tax rate over many years. The rate was 5.75% in 2015 and has been reduced incrementally each year. It reached a single flat rate structure as the graduated brackets were eliminated. For 2025, the flat rate is 4.25%, down from 4.50% in 2024. Source: North Carolina Department of Revenue, Tax Rate Schedules.
What will North Carolina's income tax rate be after 2025?
North Carolina's income tax rate is scheduled to drop to 3.99% for tax years beginning in 2026. Additional reductions may apply for 2027 and later years if certain revenue triggers in Session Law 2023-134 are met. Source: North Carolina Department of Revenue, Tax Rate Schedules.
Does North Carolina have local income taxes?
No. North Carolina does not impose local income taxes on individuals. Only the state-level flat rate of 4.25% applies to individual income for tax year 2025. Source: North Carolina Department of Revenue.
Official sources
- North Carolina income tax rates applied to capital gains (tax year 2025): North Carolina Department of Revenue, as at Jun 12, 2026.
Reviewed by the CalculatorHub team, edited by James Graham, 25 June 2026. See our methodology. General information, not financial or tax advice. State-specific exclusions, if any, are set by the North Carolina Department of Revenue.