TAXES 22-03, North Carolina State Income Tax Withholding
Published: February 23, 2022
Effective: Pay Period 03, 2022
Summary
The income tax withholdings for the State of North Carolina includes the following changes:
- The standard deduction for Single, Married, or Surviving Spouse filers has changed from $10,750 to $12,750.
- The standard deduction for Head of Household filers has increased from $16,125 to $19,125.
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: |
In the event that the employee does not file a State Withholding Allowance Certificate, then Single and zero exemptions (S00) will be used as the basis for withholding. |
Withholding Formula (Effective Pay Period 03, 2022)
- Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages.
- Subtract the nontaxable biweekly Federal Employees 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 (e.g., 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:
Marital Status:
Standard Deduction:
Single
$12,750
Married
$12,750
Head of Household
$19,125
- Determine the exemption allowance by subtracting the amount from the gross annual wages to compute the taxable income.
Multiply the number of Allowances by $2,500
- Multiply the annualized taxable wages calculated in step 6 by 5.09 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.
Resources
To view the updated tax formula, go to the page from the drop-down menu on the National Finance Center (NFC) Home page. 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 at ServiceNow Portal for Federated Users and at ServiceNow Portal for Non-Federated Users.