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How to Calculate 2016 North Carolina State Income Tax by Using State Income Tax Table

1. Find your income exemptions

2. Find your pretax deductions, including 401K, flexible account contributions ...

3. Find your gross income

4. Check the 2016 North Carolina state tax rate and the rules to calculate state income tax

5. Calculate your state income tax step by step

6. If you want to simplify payroll tax calculations, you can download ezPaycheck payroll software, which can calculate federal tax, state tax, Medicare tax, Social Security Tax and other taxes for you automatically. You can try it free for 30 days, with no obligation and no credt card needed.

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  North Carolina STATE TAX TABLES

Tax rate used in calculating North Carolina state tax for year 2016

State Abbreviation:

NC

State Tax Withholding State Code:

37

Acceptable Exemption Form:

NC-4

Basis For Withholding:

State Exemptions

Acceptable Exemption Data:

S, M, H / Number of Dependents

TSP Deferred:

Yes

Special Coding:

None

Additional Information:

None





Withholding Formula >(North Carolina Effective 2016)<
  1. Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages.

  2. Subtract the nontaxable biweekly Federal Health Benefits Plan payment(s) (includes dental and vision insurance program, and flexible spending account - health care and dependent care deductions) from the amount computed in step 1.

  3. Add the taxable biweekly fringe benefits (taxable life insurance, etc.) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.

  4. Multiply the adjusted gross biweekly wages by 26 to obtain the annual wages.

  5. Determine the standard deduction allowance by applying the following guideline and subtract this amount from the annual wages.

  6. If the Employee Is:

    The Standard Deduction Is:

    Single, Married or Qualifying Widow(er)
    $ 7,750
    Head of Household    12,400

  7. Determine the dependent allowance by applying the following guideline and subtract this amount from the result of step 5.

  8. Dependent Allowance = $2,5001 x Number of Dependents
  9. Apply the taxable income computed in step 6 to the following table to determine the North Carolina tax withholding.

  10. Tax Withholding Table
    Single, Married Person, Qualifying Widower and Head of Household

    If the Amount of
    Taxable Income Is:

    The Amount of North Carolina
    Tax Withholding Should Be:


    Over:

    But Not
    Over:

    $        0 and over 5.85% minus $    0.00

  11. Divide the annual North Carolina tax withholding by 26 and round to the nearest dollar to obtain the biweekly North Carolina tax withholding.

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