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North Carolina: minimum wage, income tax and cost of living

North Carolina in numbers: the minimum wage, state income tax, sales tax and median rent, from official sources, and what they mean for a budget.

Updated: October 11, 2026

What it costs to live and work in North Carolina: the minimum wage, state income tax, sales tax and median rent, from official sources, and what they mean for your monthly budget.

North CarolinaSource
Minimum wage$7.25 an hourUS Department of Labor, State Minimum Wage Laws (updated July 1, 2026)
State income tax3.99 % flatTax Foundation, State Individual Income Tax Rates and Brackets, 2026
State sales tax4.75 %Tax Foundation, State and Local Sales Tax Rates, Midyear 2026 (as of July 1, 2026)
Median gross rent$1,338 a month (2024)US Census Bureau, ACS 2024 1-year estimates, table B25064 Median Gross Rent

North Carolina's minimum wage is $7.25 an hour, the same as the federal rate.

North Carolina taxes income at a flat 3.99 % in 2026.

The state sales tax is 4.75 %; counties add an average of 2.35 %, for a combined 7.10 %.

What income does rent in North Carolina take?

A common rule of thumb is to keep rent at or below 30 % of gross income. At the median rent of $1,338 a month, that means a household income of about $53,500 a year before tax.

Work out your take-home pay

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