StateSide

NC · payroll profile

North Carolina

Everything an out-of-state employer needs before running a North Carolina payroll: what to withhold, which form the employee signs, whether reciprocity applies, and who to register with.

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Personal income tax
Flat 3.99%
Reciprocal agreements
None
SUI wage base 2026
$34,200
Local income taxes
No

Income tax withholding

Imposes wage income tax Yes
Rate structure Flat 3.99%
Withholding certificate NC-4
Employee's Withholding Allowance Certificate (NC-4EZ and NC-4 NRA variants also exist)
Accepts federal Form W-4 No
Convenience-of-the-employer rule No
Nonresident withholding threshold From the first dollar
Withholding required from the first dollar of North Carolina-source wages; no de minimis day or dollar safe harbor. The flat rate dropped from 4.25% to 3.99% effective January 1, 2026.
Local income taxes No
No local personal income or wage taxes in North Carolina.

Reciprocity

States that exempt North Carolina residents

A North Carolina resident working in these states files that state's certificate and is taxed only by North Carolina.

District of Columbia

Unemployment insurance and paid leave

Taxable wage base 2026 $34,200
2025 base was $32,600.
New employer rate 1%
Experience rate range 0.06% – 5.76%
Experience-rating method reserve ratio
Employee UI contribution No
Paid family / medical leave No

Employer registration

Tax agency
North Carolina Department of Revenue
UI agency
North Carolina Division of Employment Security (DES)

Sources

ncdor.gov · taxfoundation.org · taxfoundation.org · oui.doleta.gov · oui.doleta.gov · oui.doleta.gov

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This is a determination aid, not advice. StateSide encodes published state rules and applies them mechanically to the facts you enter. It does not know your entity structure, your nexus history, your equity compensation, or the dozens of exceptions that turn a clean rule into a judgement call. Every determination cites the state source it came from — verify against that source, and take anything consequential to a payroll tax professional before you act on it.