North Carolina taxes capital gains at 4.5%. Combined with federal taxes, your effective rate on a home sale could reach 23.3%.
NC State Rate
4.5%
Flat tax rate (2026)
Federal Rate
15%
Most common long-term bracket
Combined Effective
23.3%
On $150K taxable gain (example)
After the $250K/$500K exclusion, here's what a typical seller might owe.
If North Carolina is where your primary residence is located and you've lived there at least 2 of the last 5 years, you can exclude up to $250K (single) or $500K (married filing jointly) of your capital gain from both federal and state taxes.
Investment and rental properties in North Carolina don't qualify for the exclusion. You'll owe 4.5% state tax plus federal tax on the full gain, plus 25% depreciation recapture on any depreciation claimed.
In North Carolina, homes sold in February sell for 6% more than those sold in October (-7%). Timing your sale right can offset a significant portion of your tax bill.
Capital gains tax rates on home sales in North Carolina and nearby states.
| State | Rate | Tax on $150K Gain | Notes |
|---|---|---|---|
| 0% | $0 | No state income tax | |
North CarolinaYou | 4.5% | $6,750 | Flat tax rate (2026) |
| 5.39% | $8,085 | Flat tax rate (2026) | |
| 5.75% | $8,625 | Top marginal rate | |
| 6.2% | $9,300 | Top rate; 44% deduction available |
Selling in Tennessee instead of North Carolina would save $6,750 in state tax on a $150K gain.
North Carolina taxes capital gains at a flat 4.5% rate for 2026, making it competitive in the Southeast. The rate has been declining in recent years.
The Charlotte and Raleigh-Durham metro areas drive most market activity. Both have seen significant appreciation from corporate relocations and tech growth.
NC does not offer a preferential capital gains rate. All income is taxed at the flat 4.5%.
The state's lower tax rate compared to Virginia (5.75%) and South Carolina (6.2%) has contributed to strong inbound migration.
Offering buyer concessions?
Our sister tool helps you model different scenarios and maximize your position.