The North Carolina bonus tax calculator at the top of this page helps employers quickly estimate employee take-home pay (also known as net pay) for bonuses. When applicable, it uses the state’s flat 4.35% withholding rate for supplemental wages.
Behind the numbers
Behind the numbers
Updated: July 11, 2025
Does North Carolina tax bonuses?
Yes. North Carolina taxes bonuses and other supplemental wages using the state’s flat 4.35% income tax rate. If the bonus (or other supplemental wage) is paid separately or in a single combined payment with regular wages but itemized, the employer can choose one of the following methods — if income tax has already been withheld from the employee’s regular wages:
- Withhold a flat 4.35% from the bonus amount, or
- Combine the bonus with the most recent regular wages, calculate withholding on the total as a single payment, then subtract the amount already withheld from regular wages.
If no tax was withheld from regular wages, employers must use method 2 above.
Vacation pay is treated as regular wages if it replaces a typical pay period. However, if vacation pay is paid in addition to regular wages, it is considered supplemental and should be taxed accordingly.
How to calculate bonus tax in North Carolina
Bonuses may be taxed using North Carolina’s flat 4.35% rate for supplemental wages — whether paid separately or with regular wages and itemized. Employers may also use the aggregate method if they prefer.
How can employers in North Carolina pay bonuses to employees?
Bonuses can be paid via:
- Check
- Direct deposit
- Pay card
How do bonuses work in North Carolina?
Bonuses are part of gross income, subject to normal withholding, and reported on an employee’s W-2 form.
Why are bonuses taxed differently than standard pay?
They aren’t — the same flat rate applies to all wages.
How much tax is taken out of a bonus in North Carolina?
- 4.35% state + 22% federal = 26.35%, plus standard payroll deductions.