North Carolina Wage and Payroll Tax Facts

February 02, 2024

Having to comply with unique state taxes and wage laws can make processing payroll doubly daunting. Here’s everything you need to know about these rates and laws for the state of North Carolina.

North Carolina uses the same minimum wage rates that are required by the federal government in the Fair Labor Standards Act (FLSA), including standard and tipped minimum wage rates as well as tip credits. The state uses these rates for all county and local government agencies, and governmental instrumentalities too. 
When it comes to processing payroll, North Carolina-based organizations must handle the following taxes in addition to those required by the federal government:

The below information was last updated January 30, 2024. It is not intended as legal or tax advice.

North Carolina Minimum Wage Rates

Wage Type

North Carolina Rates

Federal Rates

Minimum Wage



Tipped Minimum Wage



Actual Tip Credit



North Carolina State Income Tax (SIT) Rates

North Carolina has a flat income tax rate of 4.60%, meaning all residents pay the same amount regardless of their income levels.

Additional North Carolina SIT Details

Valid Filing Statuses

  • S = Single
  • M = Married or qualified widow(er)
  • H = Head of Household
  • NRA = Non-resident Alien


Number of allowances

Form W-4

Form NC-4

Reconciliation Frequency


North Carolina State Unemployment Insurance (SUI) Rates

SUI provides unemployment benefits to eligible workers who are unemployed through no fault of their own (as determined by state law) and meet the state’s eligibility requirements.

North Carolina SUI Tax Details

Taxable Wage Base


Employee Subject to Tax


Rates for Experienced Employers

0.06% - 5.76%

Rates for New Employers


Effective Period

Calendar Year

Voluntary Contributions Allowed

Yes; due within 30 days of receiving annual rate notice.

North Carolina State Disability Insurance (SDI) Rates

SDI benefits are funded by employees through mandatory payroll deductions from each paycheck. North Carolina, however, doesn't require employers to collect an SDI tax.

Miscellaneous North Carolina Tax Information

Reciprocal Agreement(s)

Reciprocal agreements are when workers who live and work in different states are only required to pay taxes to the state where they live. North Carolina currently has no reciprocal agreements with any other states.

This doesn’t mean, however, that interstate workers living in North Carolina pay double. It’s federally illegal for two states to tax the same income. In most cases, the employee’s work state will credit or refund them at tax time based on the taxes they owe their home state. If the tax rates differ, the employee must cover the difference.

Paid Sick Leave (PSL) Taxes

The state of North Carolina doesn’t require employers to collect PSL taxes, nor does the state have a program providing such leave to employees.

Paid Family and Medical Leave (PFML) Taxes

The state of North Carolina doesn’t require employers to collect PFML taxes, nor does the state have a program providing such leave to employees.

North Carolina Employer Registration

The agencies below can help with your state-based employer registration, including best practices, account numbers, and unemployment information. Contact the Department of Revenue for withholding tax topics and the Division of Employment Security for unemployment tax topics.

Registration Details

Department of Revenue

Division of Employment Security


(877) 308-9103 (919) 707-1170

Online Registration

NCDOR Registration Page Employer Account Creation Page

Registration Form

Form NC-BR Form NCUI 604

Registration Instructions

Online and paper registration options are available.

Account numbers will be issued during the online process or in 2-3 weeks via mail.

Employer Self-Service Login

eBusiness Center Page Department of Commerce Sign In

Additional North Carolina Payroll Tax Resources


This information is provided as a courtesy and may be updated at any time. It is not intended as legal or tax guidance. If you have questions or concerns, we encourage you to seek the advice of a qualified CPA, tax attorney, or advisor.


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