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Most standard 401 (k), IRA and other retirement account income is taxed at North Carolina's state income tax rate of 4.75%. There are some exceptions to this rule, though.
In North Carolina, all Social Security and Railroad Retirement benefits are exempt from state income taxes, which is a great advantage for retirees relying on these sources of income. There is also no inheritance tax, estate tax, or military retirement benefit taxes in North Carolina.
State of North Carolina, North Carolina may not tax certain retirement benefits received by retirees (or by beneficiaries of retirees) of the state of North Carolina and its local governments or by the United States government retirees (including military).
29 Δεκ 2023 · However, recent tax reform could lower the flat income tax rate even more in 2024 and thereafter. Below, we explain various North Carolina state taxes affecting retirement income, such as sales tax, inheritance tax, and property taxes.
North Carolina cannot tax certain retirement benefits received by retirees (or by beneficiaries of retirees) of the U.S. government and...
The amount of retirement benefits subject to North Carolina income tax is the same amount of retirement benefits on which federal income tax must be paid. You may elect to have federal and/or North Carolina income tax withheld or not withheld from your retirement benefit.
1 Ιαν 2023 · During early 2023, the Retirement Systems Division (RSD) has received many questions from members about recent changes to tax withholdings and their elections. This document is intended to address frequently asked questions about these changes to tax withholding processes.