North Carolina Self-Employment Tax Calculator

Calculate your self-employment tax, federal income tax, and North Carolina state income tax as a freelancer or 1099 contractor. North Carolina has a flat income tax rate of 4.

Annual Tax Breakdown

1099 Income
$85,000
Business Expenses
-$10,000
Net Profit
$75,000
Net Earnings (92.35%)(SE tax base)
$69,263
Social Security (12.4%)
-$8,589
Medicare (2.9%+)
-$2,009
Total SE Tax
-$10,597
SE Deduction (50%)(reduces income tax)
$5,299
Federal Income Tax
-$6,794
State Income Tax
-$3,375
Total Tax Owed
$20,766

Summary

Total Income
$75,000
Total Taxes
-$20,766
After-Tax Income
$54,234
Effective Tax Rate(on total income)
27.7%

Quarterly Estimated Payments

Q1 (Jan-Mar)Due April 15
$5,192
Q2 (Apr-May)Due June 15
$5,192
Q3 (Jun-Aug)Due September 15
$5,192
Q4 (Sep-Dec)Due January 15 (next year)
$5,192
Each Quarterly Payment
$5,192

Tax Breakdown

See your complete freelancer financial picture

Your estimated quarterly tax payment is $5,192. Model your freelance income alongside expenses, savings, and investments in the full simulator.

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North Carolina Tax Overview for Freelancers

North Carolina has a flat income tax rate of 4.5%. The state has been aggressively reducing its rate from over 5.75% in recent years. Self-employed individuals in North Carolina pay federal self-employment tax (15.3%) plus federal income tax, and North Carolina state income tax on their net self-employment earnings.

Flat 4.5% rate (declining)Booming Research Triangle tech sectorModerate cost of livingSocial Security is taxed

Self-Employment Taxes in North Carolina

If you work as a freelancer or independent contractor in North Carolina, your tax situation involves multiple layers: federal self-employment tax, federal income tax, and North Carolina state income tax. Understanding how each component works helps you plan your quarterly estimated payments and maximize your deductions.

North Carolina Income Tax for Freelancers

North Carolina has a flat income tax rate of 4.5%. The state has been aggressively reducing its rate from over 5.75% in recent years.

Cost of Living for Freelancers in North Carolina

North Carolina's cost of living is about 5% below the national average, with the Triangle area near the average. As a freelancer in North Carolina, your effective earnings depend not just on your tax rate but also on what your after-tax income can buy. Consider local costs for housing, coworking spaces, and daily expenses when setting your rates.

Financial Tips for North Carolina Freelancers

  • North Carolina's declining tax rates make it increasingly competitive for workers
  • The Research Triangle (Raleigh-Durham-Chapel Hill) has a booming tech and biotech job market
  • North Carolina has a moderate cost of living with growing metro areas
  • North Carolina taxes Social Security — consider this for retirement planning

Key North Carolina Tax Features

  • Flat 4.5% rate (declining)
  • Booming Research Triangle tech sector
  • Moderate cost of living
  • Social Security is taxed

Model Your North Carolina Freelance Finances Over Time

This calculator shows your North Carolina tax bill. Trajectoryy's full simulator models your freelance income alongside expenses, savings, investments, and more — month by month for years into the future.

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Compare North Carolina with Other States

Virginia5.75% top rateTennesseeNo income taxGeorgia5.49% top rateCalifornia13.3% top rateNew York10.9% top rateTexasNo income tax

Frequently Asked Questions

How is self-employment tax calculated in North Carolina?
Self-employed workers in North Carolina pay federal self-employment tax (15.3% on 92.35% of net earnings), federal income tax, and North Carolina state income tax. North Carolina has a flat income tax rate of 4.5%. The state has been aggressively reducing its rate from over 5.75% in recent years.
How much will I owe in quarterly taxes as a freelancer in North Carolina?
Your quarterly estimated tax payment in North Carolina depends on your total tax liability — including SE tax, federal income tax, and North Carolina state income tax. Use the calculator above to estimate your quarterly payments. As a general rule, freelancers should set aside 25-35% of their net income for taxes.
What business deductions are available for North Carolina freelancers?
Freelancers in North Carolina can deduct the same federal business expenses as in any state: home office, equipment, software, health insurance, vehicle expenses, and more. These deductions also reduce your North Carolina state taxable income, providing additional state tax savings.
Does North Carolina have any special taxes for self-employed workers?
North Carolina does not have a separate self-employment tax. However, your net self-employment income is subject to North Carolina's regular income tax (4.5% top rate) in addition to federal self-employment tax and federal income tax.
Should I form an LLC or S-Corp as a freelancer in North Carolina?
The decision to form an LLC or S-Corp in North Carolina depends on your income level. Generally, if your net self-employment income exceeds $50,000-$60,000, an S-Corp election may save you money by allowing you to pay yourself a reasonable salary (subject to FICA/Medicare) while taking the rest as distributions (not subject to SE tax). Consult a North Carolina tax professional for advice specific to your situation.

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