Does North Carolina tax Social Security?
Does not tax Social Security
No. North Carolina lets you deduct the Social Security that was taxed on your federal return.
What the North Carolina Department of Revenue says
We do not paraphrase the rule from memory. This is the state's own wording, copied from the page linked below it:
“If your social security or railroad retirement benefits were taxed on your federal return, you may take a deduction for those benefits on your North Carolina individual income tax return.”
Federal tax is a separate question
Even though North Carolina does not tax it, the IRS can still tax part of your Social Security on your federal return. Whether it does depends on your other income. Our taxable Social Security calculator follows the IRS worksheet line by line, and this guide explains the rule.
You can ask Social Security to withhold federal tax from each payment. Withholding for North Carolina state tax, if you need it, is arranged with the state, not with Social Security. State rules change with new laws, so check with the North Carolina Department of Revenue before you file.
Other states where the answer is “does not tax Social Security”
Check our work
The answer above comes from this page. Follow the link and compare.
- Social Security and Railroad Retirement BenefitsNorth Carolina Department of Revenue. Read on November 12, 2026.