Tax Calculator Shows How Much You Pay in NC Income Taxes

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Whether through tax cuts or further increases for state employees, one of the main selling points that has helped North Carolina lawmakers finally pass a new state budget. was that almost everyone will have more money in their pockets.

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Your share of the budget

With NC’s new state budget, everyone should see a bit more of their bank accounts. When it comes to income taxes, anyone who files taxes with a standard deduction will pay less next year, if at all. Each state teacher will receive at least one bonus of $ 2,300 and each state employee will receive at least one bonus of $ 1,000. What’s in it for you? This is the special report of The N&O.

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Starting in 2022, state income taxes will go down for everyone due to new budget tax laws that North Carolina lawmakers just passed.

Businesses are the biggest winners, with their income tax rate set to reach 0% by 2029 as part of the new cuts. But ordinary people will also see some benefits. The personal income tax rate will drop from the current 5.25% to 4.99% next year, and will continue to decline gradually over the next few years until reaching 3.99% in 2026 and -of the.

The tax rate cuts will disproportionately help the richest earners. But a different change that lawmakers have also passed, to increase the standard deduction, is aimed at helping low-income people.

The standard deduction is the amount of money a person can earn before they have to start paying taxes. By dropping it from $ 21,500 now to $ 25,500 next year, that means anyone earning less than $ 25,000 will not have to pay income tax at all. And people who earn more than that will now owe a bit less tax, because the higher standard deduction means lower taxable income.

Finally, the new tax laws also increase the deductions that people can take to have children. It applies to families of the lower and middle classes.

Everyone will have different results depending on their marital status, the money they earn and the number of children they have. To see how much money you may owe in taxes next year, enter your data below.


Estimate your taxes

Federal adjusted gross income amount. No commas. Dependent children only. Note: No data is tracked or stored.

ESTIMATE OF IMPT NC 2022:

Your 2022 tax estimate is FAULT In regards to $ TK, or about TK%, compared to a tax bill estimated at traditional knowledgeequal to your tax estimate in 2021 using the same annual income, the same type of declaration and the same number of children.

BEHIND THE ESTIMATE

Disclaimer

The North Carolina income tax estimate shown here is for taxes in 2022, which people will file in 2023. The calculation uses the standard deduction. Actual results may differ from the estimate you see in this calculator. For example, if you itemize your deductions or if your adjusted gross income is substantially different from your taxable income, your taxes may be higher or lower. The News & Observer is not a financial service provider, and if you have any questions or concerns about your taxes in the future, you can consult a professional.

How was this calculated?

With a file type of FAULT and a gross annual income of FAULT, your standard deduction is FAULT and a total child tax credit of FAULT at a rate of FAULT for each of your FAULT children. This puts your taxable income at around FAULT.

What is the new tax rate?

The 2021-2023 budget sets the tax rate for tax filers at 4.99%, down from the previous rate of 5.25%.

What are the new standard deductions?

The new budget establishes standard deductions based on the type of filer for the tax year starting in 2022.

Type of declarant 2021 2022
Married, joint filing $ 21,500 $ 25,500
Head of household $ 16,125 $ 19,125
Alone $ 10,750 $ 12,750
Married, separate deposit $ 10,750 $ 12,750

How is the child tax credit calculated?

Depending on how you file your return, your tax deduction per child depends on your adjusted gross income.

Married, jointly declaring / surviving spouse

Wage scale 2021 2022
Up to $ 40,000 $ 2,500 $ 3,000
$ 40,001 to $ 60,000 $ 2,000 $ 2,500
$ 60,001 to $ 80,000 $ 1,500 $ 2,000
$ 80,001 to $ 100,000 $ 1,000 $ 1,500
$ 100,001 to $ 120,000 $ 500 $ 1,000
$ 120,001 to $ 140,000 $ 0 $ 500
$ 140,001 and more $ 0 $ 0

Head of household

Wage scale 2021 2022
Up to $ 30,000 $ 2,500 $ 3,000
$ 30,001 to $ 45,000 $ 2,000 $ 2,500
$ 45,001 to $ 60,000 $ 1,500 $ 2,000
$ 60,001 to $ 75,000 $ 1,000 $ 1,500
$ 75,001 to $ 90,000 $ 500 $ 1,000
$ 90,001 to $ 105,000 $ 0 $ 500
$ 105,001 and over $ 0 $ 0

Alone Where Married, separate deposit

Wage scale 2021 2022
Up to $ 20,000 $ 2,500 $ 3,000
$ 20,001 to $ 30,000 $ 2,000 $ 2,500
$ 30,001 to $ 40,000 $ 1,500 $ 2,000
$ 40,001 to $ 50,000 $ 1,000 $ 1,500
$ 50,001 to $ 60,000 $ 500 $ 1,000
$ 60,001 to $ 70,000 $ 0 $ 500
$ 70,001 and over $ 0 $ 0

This story was originally published December 1, 2021 6:00 a.m.

Will Doran reports on North Carolina politics, specifically the state legislature. In 2016 he started PolitiFact NC, and before that he covered local issues in several towns and villages. Contact him at [email protected] or (919) 836-2858.

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Tyler Dukes is an investigative reporter for The News & Observer specializing in data and public records. He attended North Carolina State University and grew up in Elizabeth City.