Capital Gains Calculators
North Carolina Capital Gains Tax Calculator
One of the fastest income tax declines of any state this decade — down from 7.75% to 3.99% since 2013 — with no city or county adding anything on top.
Calculate your North Carolina capital gains tax
Flat 3.99% for 2026, no local tax anywhere in the state.
No North Carolina city or county — including Charlotte, Raleigh, Durham, and Greensboro — levies a local income tax. This is a planning estimate; confirm the current rate with the NC Department of Revenue, since it's scheduled to keep declining toward 3.49% in future years.
Flat, falling, and taxed the same as wages
North Carolina taxes capital gains as ordinary income, at the state's flat rate — 3.99% for 2026. There's no separate capital gains schedule and no discount for how long you held an asset; a stock sold after six months and one sold after sixteen years are taxed identically at the state level.
One of the steepest income tax declines of any state
No local tax anywhere in the state
Unlike New York (where NYC adds up to 3.876% locally) or Maryland (where every county adds its own tax), North Carolina has no city or county income tax at all — not in Charlotte, not in Raleigh, not anywhere. The flat state rate is the complete state-and-local income tax picture, a genuine structural simplicity most large, fast-growing states can't match.
| Feature | North Carolina |
|---|---|
| State capital gains treatment | Ordinary income, flat 3.99% (2026) |
| Local income tax | None, anywhere in the state |
| Historical top rate (2013) | 7.75%, 7-bracket progressive |
| Scheduled future rate | 3.49%, pending revenue triggers |
Why the rate keeps dropping
North Carolina's flat-tax transition, dating to 2013 reform legislation, was explicitly designed to compete with neighboring Florida and Tennessee, both of which have no income tax at all. Each additional rate cut has been conditioned on the state meeting specified revenue growth targets — meaning further declines aren't automatic on a fixed calendar, but the trend has consistently pointed downward for over a decade.
What doesn't get special treatment
Unlike Georgia, North Carolina does not exempt Social Security benefits from state tax, and most retirement account distributions are taxed at the same flat rate as everything else — the one notable exception being certain government pensions covered under a specific 1998 legal settlement (the "Bailey" exemption). None of these provisions reduce tax on investment or property capital gains specifically, which remain fully subject to the flat rate regardless of your age or income source.
North Carolina's flat-tax rate schedule (2013 reform through the 2026 rate) verified against the NC Department of Revenue, Tax Foundation, and multiple independent 2026 state tax guides showing consistent, matching year-by-year figures. This is a planning estimate — confirm the current rate with the NC Department of Revenue before filing.
Frequently asked questions
Before you sell an appreciated asset in North Carolina.
Does North Carolina have a lower tax rate for long-term capital gains?
No. North Carolina taxes all capital gains as ordinary income at its flat state rate, with no discount for how long you held the asset.
What is North Carolina's income tax rate for 2026?
3.99%, flat on all taxable income, down from 4.25% in 2025 as part of a multi-year phase-down that began in 2013.
Do any North Carolina cities add their own income tax?
No. No city or county in North Carolina, including Charlotte, Raleigh, and Durham, levies a local income tax — the flat state rate is the complete picture.
Will North Carolina's tax rate keep dropping?
It's scheduled to decline further to 3.49%, contingent on the state meeting specified revenue growth targets — not on a guaranteed fixed calendar.
Does North Carolina exempt Social Security or retirement income from tax?
No, unlike some neighboring states — Social Security and most retirement distributions are taxed at the standard flat rate, with a narrow exception for certain government pensions covered under the "Bailey" settlement.