TAXES 19-16, North Carolina State Income Tax Withholding
Published: February 25, 2019
Effective: Pay Period 03, 2019
Summary
The income tax withholdings for the State of North Carolina will change as follows:
- The State withholding tax rate will decrease from 5.599 percent to 5.35 percent.
- The standard deduction for Single, Married and Qualifying Widow(er) filers will increase from $8,750 to $10,000.
- The standard deduction for Head of Household filers will increase from $14,000 to $15,000.
- The adjustment based on the minimum additional withholding amount required to be claimed by nonresident aliens will change.
No action on the part of the employee or the personnel office is necessary.
Tax Formula
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 Allowances |
TSP Deferred: |
Yes |
Special Coding: |
None |
Additional Information: |
None |
Withholding Formula (Effective Pay Period 03, 2019)
- Subtract the nontaxable biweekly Thrift Savings Plan (TSP) contribution from the gross biweekly wages.
- 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.
- Add the taxable biweekly fringe benefits (i.e., taxable life insurance) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.
- Multiply the adjusted gross biweekly wages by the number of pay dates in the tax year to obtain the gross annual wages.
- Determine the standard deduction allowance by applying the following guideline and subtract this amount from the annual wages:
If the Employee Is:
The Standard Deduction Is:
Nonresident Alien, Regardless of Marital Status
$0
Single, not a nonresident alien
$10,000
Married or Qualifying Widow(er)
$10,000
Head of Household
$15,000
- Determine the exemption allowance by subtracting the amount from the gross annual wages to compute the taxable income.
Exemption Allowance = $2,500
- Multiply the annualized taxable wages calculated in step 6 by 5.35 percent to determine the annual tax amount.
- Divide the annual North Carolina tax withholding calculated in step 7 by the number of pay dates in the tax year and round to the nearest dollar to obtain the biweekly North Carolina tax withholding.
- If the employee is a nonresident alien (NRA), and is claiming additional withholding, subtract the applicable amount shown in the table below from the additional withholding (but not less than zero).
Pay Frequency
Additional Withholding
Weekly
$10
Biweekly
$21
Semimonthly
$22
Monthly
$45
Any other pay frequency
$535.00 / # of annual pay periods, rounded up to the next whole dollar
- Add the additional amount (reduced by NRA additional amount from previous step) or percentage elected by the employee to the pay period tax calculated in the above step and round to the nearest dollar to determine the amount of tax to be withheld for this pay period.
Resources
To view the updated tax formula, go to the
page from the drop-down menu on the National Finance Center (NFC) homepage. Select the tab and select from the menu to launch the tax map. Select the desired State from the map provided for the formula.Inquiries
For questions about NFC processing, authorized Servicing Personnel Office representatives should contact the NFC Contact Center at
or via the customer service portal.