{
  "$comment": "North Carolina 2026: flat 3.99% on NC taxable income; NC standard deduction $12,750 / $25,500 / $19,125 HoH; child deduction per qualifying child by AGI (modelled with the MFJ table).",
  "country": "us",
  "jurisdiction": "us-nc",
  "taxYear": "2026",
  "period": {
    "start": "2026-01-01",
    "end": "2026-12-31",
    "tz": "America/New_York"
  },
  "status": "provisional",
  "engine": "us-payroll@1",
  "currency": "USD",
  "revision": 1,
  "params": {
    "incomeTax": {
      "kind": "brackets",
      "incomeBase": "stateWages",
      "brackets": {
        "single": [
          {
            "upTo": null,
            "rate": "0.0399"
          }
        ],
        "mfj": [
          {
            "upTo": null,
            "rate": "0.0399"
          }
        ],
        "mfs": [
          {
            "upTo": null,
            "rate": "0.0399"
          }
        ],
        "hoh": [
          {
            "upTo": null,
            "rate": "0.0399"
          }
        ]
      },
      "deductions": [
        {
          "type": "fixed",
          "id": "standard",
          "label": "NC standard deduction",
          "amount": {
            "single": "12750",
            "mfj": "25500",
            "mfs": "12750",
            "hoh": "19125"
          }
        },
        {
          "type": "perPerson",
          "id": "child",
          "label": "NC child deduction per qualifying child",
          "filer": {
            "single": "0",
            "mfj": "0",
            "mfs": "0",
            "hoh": "0"
          },
          "perDependent": "3000",
          "dependents": "children",
          "perDependentSchedule": {
            "single": [
              {
                "agiUpTo": "20000",
                "value": "3000"
              },
              {
                "agiUpTo": "30000",
                "value": "2500"
              },
              {
                "agiUpTo": "40000",
                "value": "2000"
              },
              {
                "agiUpTo": "50000",
                "value": "1500"
              },
              {
                "agiUpTo": "60000",
                "value": "1000"
              },
              {
                "agiUpTo": "70000",
                "value": "500"
              },
              {
                "agiUpTo": null,
                "value": "0"
              }
            ],
            "mfj": [
              {
                "agiUpTo": "40000",
                "value": "3000"
              },
              {
                "agiUpTo": "60000",
                "value": "2500"
              },
              {
                "agiUpTo": "80000",
                "value": "2000"
              },
              {
                "agiUpTo": "100000",
                "value": "1500"
              },
              {
                "agiUpTo": "120000",
                "value": "1000"
              },
              {
                "agiUpTo": "140000",
                "value": "500"
              },
              {
                "agiUpTo": null,
                "value": "0"
              }
            ],
            "mfs": [
              {
                "agiUpTo": "20000",
                "value": "3000"
              },
              {
                "agiUpTo": "30000",
                "value": "2500"
              },
              {
                "agiUpTo": "40000",
                "value": "2000"
              },
              {
                "agiUpTo": "50000",
                "value": "1500"
              },
              {
                "agiUpTo": "60000",
                "value": "1000"
              },
              {
                "agiUpTo": "70000",
                "value": "500"
              },
              {
                "agiUpTo": null,
                "value": "0"
              }
            ],
            "hoh": [
              {
                "agiUpTo": "30000",
                "value": "3000"
              },
              {
                "agiUpTo": "45000",
                "value": "2500"
              },
              {
                "agiUpTo": "60000",
                "value": "2000"
              },
              {
                "agiUpTo": "75000",
                "value": "1500"
              },
              {
                "agiUpTo": "90000",
                "value": "1000"
              },
              {
                "agiUpTo": "105000",
                "value": "500"
              },
              {
                "agiUpTo": null,
                "value": "0"
              }
            ]
          }
        }
      ],
      "credits": []
    },
    "conformity": {
      "k401": true,
      "k403b": true,
      "k457": true,
      "hsa": true,
      "healthFsa": true,
      "dependentCareFsa": true,
      "section125": true
    },
    "programmes": []
  },
  "rounding": {
    "unit": "0.01",
    "mode": "halfUp",
    "stage": "perLine"
  },
  "knownCliffs": [
    {
      "id": "nc-child-deduction-steps",
      "field": "params.incomeTax.deductions.1",
      "description": "The child deduction per child drops by $500 at each AGI step ($10k single/MFS, $15k HoH, $20k MFJ), so one extra dollar of AGI can raise tax by about $21 (2025) / $20 (2026) per child."
    }
  ],
  "notModelled": [
    "Itemized deductions; MFS standard deduction of $0 when the spouse itemizes; NC credits; NC has no local income tax"
  ],
  "sources": [
    {
      "field": "period",
      "url": "https://www.ncdor.gov/2025-d-401-individual-income-tax-instructions/open",
      "title": "NCDOR – 2025 Form D-401 Individual Income Tax Instructions (calendar year)",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.incomeTax",
      "url": "https://www.ncdor.gov/2025-d-401-individual-income-tax-instructions/open",
      "title": "2025 D-401 – Line 15: multiply NC taxable income by 4.25%; Line 11 standard deduction; Line 10 child deduction table",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.incomeTax.brackets",
      "url": "https://www.ncdor.gov/taxes-forms/individual-income-tax/tax-rate-schedules",
      "title": "NCDOR Tax Rate Schedules – \"For Taxable Years beginning in 2025 … 4.25% (0.0425)\"; \"For Taxable Years after 2025 … 3.99% (0.0399)\" (S.L. 2023-134)",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.incomeTax.deductions.0",
      "url": "https://www.ncdor.gov/north-carolina-standard-deduction-or-north-carolina-itemized-deductions",
      "title": "NCDOR – NC standard deduction: Single $12,750; MFJ/QSS $25,500; MFS $12,750 (if spouse does not itemize); HoH $19,125",
      "retrieved": "2026-10-07",
      "note": "For 2026 the NC-30 confirms $12,750 single and $19,125 HoH (weekly $367.79 × 52); MFJ $25,500 per G.S. 105-153.5(a)(1), unchanged."
    },
    {
      "field": "params.incomeTax.deductions.0",
      "url": "https://www.ncdor.gov/income-tax-withholding-tables-and-instructions-employers/open",
      "title": "NCDOR NC-30 (2026) – \"For tax year 2026, the N.C. standard deduction for single individual is $12,750\"; HoH weekly portion $367.79; rate 3.99%",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.incomeTax.deductions.1",
      "url": "https://www.ncdor.gov/2025-d-401-individual-income-tax-instructions/open",
      "title": "2025 D-401 – Child Deduction Table (per qualifying child for whom a federal child tax credit was allowed; federal AGI): MFJ/QSS $3,000 up to $40,000, then −$500 per $20,000 to $0 over $140,000; HoH $3,000 up to $30,000, −$500 per $15,000 to $0 over $105,000; Single/MFS $3,000 up to $20,000, −$500 per $10,000 to $0 over $70,000",
      "retrieved": "2026-10-07",
      "note": "Children only (dependents: children). Table unchanged for 2026 (G.S. 105-153.5(a1))."
    },
    {
      "field": "params.incomeTax.credits",
      "url": "https://www.ncdor.gov/2025-d-401-individual-income-tax-instructions/open",
      "title": "2025 D-401 – NC tax credits not modelled",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.conformity",
      "url": "https://www.ncdor.gov/2025-d-401-individual-income-tax-instructions/open",
      "title": "2025 D-401 – NC taxable income starts from federal adjusted gross income (D-400 Line 6); no NC addition for 401(k)/403(b)/457(b), HSA or cafeteria-plan exclusions",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.programmes",
      "url": "https://www.des.nc.gov/need-help/faqs/employer-tax-faqs",
      "title": "NC Division of Employment Security – employer tax FAQs: unemployment taxes are paid by employers, not deducted from employee wages; no employee-paid state programme",
      "retrieved": "2026-10-07"
    },
    {
      "field": "rounding",
      "url": "https://www.ncdor.gov/2025-d-401-individual-income-tax-instructions/open",
      "title": "2025 D-401 – amounts rounded to whole dollars on the return; MoneyOtter rounds each line to the cent",
      "retrieved": "2026-10-07"
    },
    {
      "field": "knownCliffs",
      "url": "https://www.ncdor.gov/2025-d-401-individual-income-tax-instructions/open",
      "title": "Child Deduction Table AGI steps",
      "retrieved": "2026-10-07"
    }
  ]
}