North Carolina payroll taxes
Every tax withheld from a North Carolina paycheck or paid by the employer in 2026, with rates and wage limits.
Last verified November 2, 2026. Sources: oui.doleta.gov, taxnews.ey.com, oregon.gov.
| Tax | Employee pays | Employer pays | Wage limit |
|---|---|---|---|
| Social Security | 6.2% | 6.2% | $184,500 |
| Medicare | 1.45%* | 1.45% | No limit |
| FUTA | — | 0.6% | $7,000 |
| North Carolina SUTA | — | 1% (new) | $34,200 |
| North Carolina income tax | 3.99% | — | — |
*Plus 0.9% Additional Medicare Tax withheld on wages over $200,000. FUTA rate shown is net of the state credit.
State unemployment insurance
North Carolina charges new employers 1% on the first $34,200 each employee earns in a year. After a few years, the rate is based on the employer's layoff history and ranges from 0.06% to 5.76%.
Register and file with the North Carolina unemployment tax agency.
Income tax withholding
North Carolina has a flat income tax of 3.99% on taxable income.
Frequently asked questions
- What payroll taxes do employers pay in North Carolina?
- Social Security, Medicare, federal unemployment (FUTA) and North Carolina unemployment insurance (SUTA).
- What is the North Carolina SUTA wage base for 2026?
- $34,200 per employee.
- Does North Carolina require state income tax withholding?
- Yes. Employers withhold North Carolina income tax based on the employee's state withholding certificate or federal W-4.