Does North Carolina Tax Social Security Benefits?

No. North Carolina fully exempts Social Security benefits from state income tax.

North Carolina and Social Security income

North Carolina taxes wage income but fully exempts Social Security benefits from state income tax. Your benefits are not added to North Carolina taxable income, though federal tax on Social Security may still apply depending on your combined income.

Frequently asked questions

Does North Carolina tax Social Security benefits?

No. North Carolina fully exempts Social Security benefits from state income tax.

Is Social Security also taxed federally?

Possibly. State treatment is separate from federal. Up to 85% of Social Security benefits can be taxable on your federal return depending on your combined income, regardless of how your state treats them.

Note: State treatment of Social Security for 2026 is an estimate from SAWD's tax engine. Confirm with the North Carolina Department of Revenue.

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