The North Carolina supplemental tax rate for bonuses in 2025 is 4.25%, as set by the NCDOR. This applies to bonus payments separate from regular wages.

Bonuses in North Carolina are taxed at a flat state supplemental rate of 4.25%, plus federal taxes (22% or 37% if over $1 million), Social Security (6.2% up to $176,100), and Medicare (1.45%). The total tax depends on whether it’s a standalone bonus or combined with regular wages.

Federal bonus tax is 22% for amounts up to $1 million (37% above that), while North Carolina’s state supplemental tax is a flat 4.25%. Federal taxes also include Social Security and Medicare, which NC doesn’t adjust.

Yes, bonuses are taxed at a flat 4.25% state supplemental rate in NC, while regular wages follow the standard income tax rate of 4.25% for 2025. Federally, bonuses use a flat rate (22%) or aggregate method, unlike regular wage withholding.

For a $1,000 bonus, NC withholds $42.50 (4.25%), federal tax is $220 (22%), Social Security $62 (6.2%), and Medicare $14.50 (1.45%), totaling $339, leaving a net of $661. This assumes the bonus is standalone and under the Social Security cap.

You can’t avoid taxes entirely, but deferring the bonus to a lower-income year or contributing to a 401(k) can reduce your taxable income. NC’s 4.25% state tax still applies regardless.

Bonuses seem heavily taxed due to the combined NC state rate (4.25%) and federal rates (22% + 6.2% Social Security + 1.45% Medicare), totaling over 33% before any additional factors. It’s a standard supplemental withholding process, not a penalty.

North Carolina uses a flat 4.25% rate for state tax on bonuses, while federal tax can use either the flat rate (22%) or aggregate method (based on total wages), depending on your employer’s choice. Most employers opt for the flat rate for simplicity.

The 2025 Social Security wage base limit is $176,100, so only bonus amounts up to that cap are taxed at 6.2%. If your total annual wages exceed this, no additional Social Security tax applies to your bonus.

The NC individual income tax rate drops to 3.99% in 2026, and the supplemental rate for bonuses may follow suit unless legislation changes. Check NCDOR updates for confirmation closer to 2026.

Multiply your bonus by 0.0425 for NC tax, 0.22 for federal tax, 0.062 for Social Security (if under $176,100), and 0.0145 for Medicare, then subtract the total from your gross bonus. For example, a $5,000 bonus nets approximately $3,305 after $1,695 in taxes.

You can’t claim deductions directly on the bonus, but contributing to a 401(k) or HSA before year-end reduces your overall taxable income. NC doesn’t offer bonus-specific deductions beyond standard adjustments.

Filing status impacts federal tax if the aggregate method is used (e.g., Married Filing Jointly has higher brackets), but NC’s flat 4.25% state tax remains the same regardless. Single filers might see slightly higher federal withholding.

If your employer skips NC withholding, you’ll owe 4.25% of the bonus when filing your 2025 state tax return. Pay estimated taxes quarterly to avoid penalties.

Websites like PaycheckCity.com offer updated 2025 NC bonus tax calculators using current rates (4.25% state, 22% federal, etc.). The NCDOR site also provides tax tools and guidelines.