Georgia vs North Carolina: Taxes & Take-Home Pay 2026
On a $100,000 salary you keep $74,939 in Georgia and $75,699 in North Carolina — $760 more per year in North Carolina ($63 a month). Single filer, standard deductions.
Updated 2026-10-03
Take-home pay at every salary
| Gross salary | Georgia | North Carolina | Difference |
|---|---|---|---|
| $40,000 | $33,073 (17.3% tax) | $33,233 (16.9% tax) | -$160 |
| $60,000 | $48,145 (19.8% tax) | $48,505 (19.2% tax) | -$360 |
| $75,000 | $58,599 (21.9% tax) | $59,109 (21.2% tax) | -$510 |
| $100,000 | $74,939 (25.1% tax) | $75,699 (24.3% tax) | -$760 |
| $150,000 | $107,055 (28.6% tax) | $108,315 (27.8% tax) | -$1,260 |
| $250,000 | $171,456 (31.4% tax) | $173,716 (30.5% tax) | -$2,260 |
- Georgia total tax rate
- North Carolina total tax rate
Where the money goes at $100,000
- Georgia
- North Carolina
Sales tax: 7.56% in Georgia vs 7.10% in North Carolina (average combined rate).
About taxes in Georgia
- HB 463, the Georgia Economic Growth and Tax Relief Act of 2026, cut the flat income tax rate from 5.19% to 4.99%, retroactive to January 1, 2026.
- For 2026 the standard deduction rises to $15,000 for single, head-of-household and married-filing-separately filers and to $30,000 for married couples filing jointly. The dependent deduction rises from $4,000 to $5,000.
- Employers could begin withholding at 4.99% on May 11, 2026. Wages paid earlier in the year were withheld at 5.19%, so many workers will get the difference back when they file.
- HB 463 also sets annual 0.125-point rate cuts until the rate reaches 3.99%, and raises the retirement income exclusion to $70,000 starting in 2027.
- Georgia did not adopt the federal no-tax-on-tips and no-tax-on-overtime deductions. Instead HB 463 created narrower Georgia subtractions for qualified overtime and cash tips.
About taxes in North Carolina
- North Carolina’s flat income tax rate fell from 4.25% to 3.99% on January 1, 2026.
- The NC standard deduction is $12,750 for single filers, $25,500 for married couples filing jointly and $19,125 for heads of household.
- Social Security benefits are not taxed by North Carolina.
- Employers withhold at 4.09% for 2026 (the 3.99% rate plus 0.1%) to reduce under-withholding.
- Mecklenburg County added a 1% local sales tax effective July 1, 2026, bringing its combined rate to 8.25%.
Two flat taxes, one percentage point apart
Georgia and North Carolina both have a single flat rate in 2026: 4.99% in Georgia and 3.99% in North Carolina. Both rates were cut in 2026, and both are scheduled to keep falling.
People compare these two states when choosing between Atlanta and Charlotte or the Research Triangle, which compete for the same finance, tech and logistics jobs. The rate gap matters, but deductions narrow it. Georgia's standard deduction is larger, and Georgia gives an extra deduction for each dependent.
| Georgia | North Carolina | |
|---|---|---|
| Flat rate | 4.99% | 3.99% |
| Standard deduction, single | $15,000 | $12,750 |
| Standard deduction, married joint | $30,000 | $25,500 |
| Per-dependent deduction | $5,000 | Child deduction based on income (not modeled) |
| State sales tax rate | 4% | 4.75% |
| Average combined sales tax | 7.56% | 7.10% |
Where the deductions change the answer
At lower incomes Georgia's larger deduction offsets most of its higher rate. A single filer earning $55,000 pays $1,996 in Georgia and $1,686 in North Carolina, a difference of only $310.
For a married couple with two children earning $150,000, Georgia's $30,000 deduction plus $10,000 for the children leaves Georgia tax at $5,489. North Carolina, before its child deduction, comes to $4,968. North Carolina's child deduction would lower that further. Take-home pay after all taxes is $122,096 in Georgia and $122,617 in North Carolina.
As income rises, the one-point rate gap dominates. Every extra $10,000 of salary costs $499 in Georgia tax and $399 in North Carolina tax.
High earners: the gap grows in dollars
Because both taxes are flat, the difference between them grows in step with income. A married couple earning $250,000 with no children pays $10,978 in Georgia and $8,958 in North Carolina, $2,020 more in Georgia. Neither state has a higher bracket or a millionaire surtax, so the gap stays at about one percentage point of taxable income however much you earn.
Overtime and tips are treated differently too. Georgia did not adopt the federal no-tax-on-tips and overtime deductions and created its own narrower subtractions for qualified overtime and cash tips. Hourly workers with a lot of overtime should check how each state treats it before comparing.
Scheduled rate cuts in both states
Both states have lowered their rates for 2026, and both withheld more than the final rate for at least part of the year, so refunds are likely on both sides.
- Georgia: HB 463 sets annual 0.125-point cuts until the rate reaches 3.99%. Employers started withholding at 4.99% on May 11, 2026. Earlier 2026 paychecks were withheld at 5.19%, so expect a refund of the difference.
- North Carolina: the rate fell from 4.25% to 3.99% on January 1, 2026. Employers withhold at 4.09% (the rate plus 0.1%) to reduce under-withholding, so most North Carolina workers also see a small refund.
Retirees: Georgia is the clear winner
Neither state taxes Social Security. Georgia also excludes up to $35,000 per person (ages 62 to 64) or $65,000 per person (65 and older) of pensions, IRA withdrawals, interest, dividends and other retirement income under the 2025 IT-511, rising to $70,000 from 2027. North Carolina has no general retirement exclusion. Only Bailey-qualifying government pensions, for retirees vested by August 12, 1989, escape North Carolina tax.
A 66-year-old with $60,000 of pension and IRA income would owe little or no Georgia income tax on it. In North Carolina the same income, after the $12,750 standard deduction, is taxed at 3.99%, about $1,885.
Sales and property tax
Average combined sales tax is 7.56% in Georgia and 7.10% in North Carolina. Mecklenburg County (Charlotte) raised its combined rate to 8.25% on July 1, 2026. Georgia charges a one-time title ad valorem tax (TAVT), currently 7.0% of a vehicle's fair market value, which replaced both sales tax and annual ad valorem tax on vehicles.
Property tax is levied by counties, cities and school districts in both states, so compare actual tax bills for homes you are considering.
Moving between Atlanta and Charlotte
No reciprocity agreement links Georgia and North Carolina, so a move between them is a clean break: each state taxes the part of the year you lived there.
- There is no reciprocity agreement. If you keep a job in your old state for a while, that state taxes the wages and your new home state gives a credit.
- In the move year, file a Georgia part-year return (Form 500 with Schedule 3) and a North Carolina part-year return (Form D-400 with Schedule PN).
- Georgia prorates its retirement exclusion for part-year residents. North Carolina prorates income using a taxable percentage.
- Give your new employer that state's withholding certificate (Form NC-4 in North Carolina) from your first day.
Frequently asked questions
Is Georgia or North Carolina better for taxes?
At $100,000, North Carolina leaves you $760 more per year after income and payroll taxes. The gap widens at higher incomes ($2,260 at $250,000).
How much is $60,000 after tax in Georgia and North Carolina?
$48,145 in Georgia and $48,505 in North Carolina.
Is Georgia or North Carolina better for a family?
Close. With two children on $150,000, Georgia tax is $5,489 and North Carolina's is $4,968 before its child deduction. Georgia's $5,000 per-dependent deduction narrows the rate gap.
Which state taxes retirement income less?
Georgia. Both exempt Social Security, but Georgia also excludes up to $65,000 per person aged 65+ (2025 rules), while North Carolina only exempts Bailey-qualifying government pensions.
Why will I get a Georgia refund for 2026?
Because employers withheld at 5.19% until May 11, 2026, while your actual 2026 rate is 4.99%.
Sources
Figures are taken from official government publications and were last reviewed on 2026-10-03.
- Georgia DOR – 2026 Employer's Tax Guide (updated Sept 2026)
- Office of the Governor – Gov. Kemp Signs Legislation Lowering Taxes (May 11, 2026)
- Tax Foundation – State and Local Sales Tax Rates, Midyear 2026 (as of July 1, 2026)
- NCDOR – NC-30 Income Tax Withholding Tables and Instructions for Employers (2026)
- NCDOR – Mecklenburg County sales tax increase notice
- Tax Foundation – 2026 State Tax Changes
- Rev. Proc. 2025-32 (2026 inflation adjustments incl. OBBBA)
- IRS: Tax inflation adjustments for tax year 2026, including OBBBA amendments
- IRS: 401(k) limit increases to $24,500 for 2026, IRA limit increases to $7,500
- Georgia DOR – 2025 IT-511 Individual Income Tax Booklet (retirement income exclusion, Schedule 3)
- Georgia DOR – Vehicle taxes: Title Ad Valorem Tax (TAVT)
- NCDOR – Bailey decision concerning federal, state and local retirement benefits
- NCDOR – 2025 Form D-401 Individual Income Tax Instructions (part-year residents, credit for tax paid to another state)
- NCDOR – Form NC-4, Employee’s Withholding Allowance Certificate