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North Carolina

Financial data for local governments across North Carolina

77 Cities
100 Counties
455 Towns
21 Villages
224 CDPs

16 cities not included in the 2025 rankings below due to late or missing filings. View compliance report

North Carolina has a town-heavy local map and many municipalities run utility systems inside city government. This page helps separate broad statewide comparisons from the quirks that drive local per-capita differences.

Tax Snapshot (Beta)

Beta: source-backed tax context only. This is not a personalized tax-burden estimate.

Current source-backed tax context for North Carolina.

Component Summary Effective Coverage Sources
NC state individual income tax North Carolina uses a flat individual income tax rate of 4.25% for tax year 2025; current law schedules 3.99% for tax years beginning after 2025. Tax year 2025 (4.25%); scheduled statutory rate after 2025 is 3.99%. Source verified North Carolina tax rate schedules; North Carolina individual income tax
NC sales and use tax (state base) North Carolina general state sales and use tax rate is 4.75%; local and transit rates are additive. Current rate table effective July 1, 2024 (NCDOR). Rate missing North Carolina sales and use tax rates; North Carolina current sales and use tax rates by county
NC property tax policy (local administration) Property taxes are administered and collected locally by counties and municipalities, with state-level support through the Local Government Division. Current North Carolina Department of Revenue guidance (as accessed April 19, 2026). Needs review North Carolina property tax; North Carolina local government division

Retirement income taxes in North Carolina

Tax year 2026. Verified 2026-10-16.

Retirement income

Social Security
Not taxed: exempt from the state income tax.
Sources (5)
Government pensions and plans, in-state and federal
Conditional: Government pensions and plans are deductible only under the Bailey settlement: for a retiree who had five or more years of creditable service as of August 12, 1989 in a state, local or federal retirement system, or who had contributed or contracted to contribute to the state's §401(k) or §457 plan, or enrolled in the UNC Optional Retirement Program, before that date; everything else is taxed, local government §457 plans and §403(b) annuity plans included.
Sources (9)
Government pensions and plans from other states
Taxed.
Sources (5)
Military retired pay
Conditional: Military retired pay is deducted in full for a retiree who served at least 20 years in the uniformed services or was medically retired under 10 U.S.C. Chapter 61 (severance pay excluded); other military retired pay is deducted only under the Bailey settlement, for a retiree with five or more years of creditable service as of August 12, 1989; the rest is taxed.
Sources (7)
Private pensions
Taxed.
Sources (5)
Private employer plan withdrawals (401(k) and similar)
Taxed.
Sources (7)
IRA withdrawals
Taxed.
Sources (5)
Dividends and interest
Taxed.
Sources (6)
Capital gains
Taxed.
Sources (7)
A deduction for all income, by age or low income
No.
Sources (5)
Other state taxes on this income
None.
Sources (13)
Local income taxes
None.

This rests on a ban for cities, towns, townships and counties, and on a search for every other local government and for a wage or payroll tax under another name. State law says: 'No city, town, township, or county shall levy any tax on income or inheritance.' For the local governments that clause does not name (a regional transportation authority, a special district, any other local unit), and for a tax on wages or payroll under another name, we found no local government levying one for tax year 2026: the Census of Governments FY2022 file shows none of 945 North Carolina local governments with an individual income tax amount; a county or city may tax only as an act of the state legislature specifically authorizes, and a regional public transportation authority's 'additional revenue sources ... must be approved by the General Assembly'; we found no act of the state legislature authorizing a local tax on income, wages or payroll. The state constitution caps the rate of any 'tax on incomes' and forbids any 'poll or capitation tax' by the state legislature or 'any county, city or town, or other taxing unit'; neither clause grants or bars a local income tax.

Sources (14)

Estate and inheritance taxes

Estate tax
No.
Sources (8)
Inheritance tax
No.
Sources (7)

Compare retirement income taxes in every state

North Carolina Towns

North Carolina has hundreds of incorporated towns. Breaking them out from cities is one of the fastest ways to understand the state's local structure.

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Charlotte Profile

Start with Charlotte for a large-city North Carolina example with full trend cards, revenue mix, and spending breakdowns.

View Charlotte

Demographics

Census Bureau ACS 5-year estimates (2023)

10,584,340 Population
$69,904 Median Household Income
$259,400 Median Home Value
39.1 Median Age
13.2% Poverty Rate
4.8% Unemployment Rate
66.4% Homeownership Rate
34.7% Bachelor's+ Rate
Population
10,584,340 (2023)
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2010 2023
Median Household Income
$69,904 (2023)
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2010 2023
Per Capita Income
$39,616 (2023)
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2010 2023
Median Home Value
$259,400 (2023)
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2010 2023
Median Gross Rent
$1,162 (2023)
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2010 2023
Median Age
39.1 (2023)
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2010 2023
Gini Index
0 = perfect equality · 1 = perfect inequality
0.5 (2023)
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2010 2023

Local Governments

Cities (77)
Counties (100)
Towns (455)
Villages (21)
Census-Designated Places (224)

Largest by Population

Wake County County 1,151,009
Mecklenburg County County 1,130,906
Charlotte City 886,283
Guilford County County 542,987
Raleigh City 470,763

City Rankings

Based on FY 2025 financial data

Explore Governments

Data: NYS Comptroller · CA State Controller · US Census Bureau benchmarkusa.org