North Carolina Tax Changes 2026: 4.25% and Add-backs | HelloBooks North Carolina stays on the January 1, 2023 Code: no Schedule 1-A deductions, an 85% bonus depreciation add-back, and a 4.25% rate for 2025.
North Carolina starts from federal AGI as of January 1, 2023, so the new federal law mostly shows up on the D-400 as adjustments your team has to make.
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Individual rate, 2025
4.25%
Applies: Tax year 2025From IRS.gov · checked October 10, 2026
NCDOR says federal changes after January 1, 2023, including the 2025 reconciliation act, generally do not apply unless North Carolina adopts them. North Carolina does not follow the federal standard deduction, the federal itemized deduction amount, or the deductions on federal Schedule 1-A.
Add back 85% of the bonus depreciation taken on the federal return for 2025. A client who had that add-back can then deduct 20% of it in each of the first five tax years starting in 2026, so set up the schedule now.
The return is due April 15, 2026 for calendar-year filers.
The plain-English summary for business owners
Comparison · bonus depreciation
Comparison · Schedule 1-A at the state level
New form · tax year 2025 onward
General information for tax professionals, not advice on a specific return. Figures are from IRS.gov on the date shown; check the current IRS instructions before filing.
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