Texas vs North Carolina Taxes: Income, Property & Sales

Does Texas or North Carolina have lower taxes? We answer that in a variety of ways below:

Texas vs North Carolina Income Tax Comparison

	Texas	North Carolina
Income Tax Rates & Thresholds	None	4.99%
Median Income	$74,640	$65,070
Income Tax Paid On Median Household Income	$9,189	$9,694
Income After Tax Based on Median Household Income	$65,451	$55,376

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Texas vs North Carolina Property Tax Comparison

	Texas	North Carolina
Average Property Tax Rate	1.25%	0.52%
Average House Price By State	$305,497	$321,447
Average Property Tax Owed Per Year	$3,819	$1,672
Income After Income Taxes & Property Taxes Based On Median State Household Income	$61,632	$53,704

Texas vs North Carolina Sales Tax Comparison

	Texas	North Carolina
Average State Sales Tax	6.25%	4.75%
Average Local Sales Tax Across the State	1.95%	2.23%
Average Combined Sales Tax Rate	8.20%	6.98%
Maximum Amount of Sales Tax Paid Based on Median Household Income	$4,671	$3,504
Maximum Disposable Income Based on Median Household Income	$56,961	$50,200

After Tax Comparison Earning $40,000 Per Year Filing As Single

	Texas	North Carolina
Income Tax Owed	$3,040	$4,400
After Tax Income	$36,960	$35,600
Income After Income & Property Tax	$33,141	$33,928
Maximum Disposable Income After Income, Property & Sales Taxes	$30,630	$31,715

After Tax Comparison Earning $60,000 Per Year Filing As Single

	Texas	North Carolina
Income Tax Owed	$5,968	$8,326
After Tax Income	$54,032	$51,674
Income After Income & Property Tax	$50,213	$50,002
Maximum Disposable Income After Income, Property & Sales Taxes	$46,408	$46,740

After Tax Comparison Earning $80,000 Per Year Filing As Single

	Texas	North Carolina
Income Tax Owed	$10,368	$13,724
After Tax Income	$69,632	$66,276
Income After Income & Property Tax	$65,813	$64,604
Maximum Disposable Income After Income, Property & Sales Taxes	$60,826	$60,389

After Tax Comparison Earning $100,000 Per Year Filing As Single

	Texas	North Carolina
Income Tax Owed	$14,768	$19,122
After Tax Income	$85,232	$80,878
Income After Income & Property Tax	$81,413	$79,206
Maximum Disposable Income After Income, Property & Sales Taxes	$75,243	$74,039

After Tax Comparison Earning $100,000 Per Year Filing As Married Filing Jointly

	Texas	North Carolina
Income Tax Owed	$8,481	$12,198
After Tax Income	$91,519	$87,802
Income After Income & Property Tax	$87,700	$86,130
Maximum Disposable Income After Income, Property & Sales Taxes	$81,054	$80,511

After Tax Comparison Earning $150,000 Per Year Filing As Married Filing Jointly

	Texas	North Carolina
Income Tax Owed	$18,536	$24,748
After Tax Income	$131,464	$125,252
Income After Income & Property Tax	$127,645	$123,580
Maximum Disposable Income After Income, Property & Sales Taxes	$117,972	$115,517

After Tax Comparison Earning $200,000 Per Year Filing As Married Filing Jointly

	Texas	North Carolina
Income Tax Owed	$29,536	$38,243
After Tax Income	$170,464	$161,757
Income After Income & Property Tax	$166,645	$160,085
Maximum Disposable Income After Income, Property & Sales Taxes	$154,016	$149,641

After Tax Comparison Earning $250,000 Per Year Filing As Married Filing Jointly

	Texas	North Carolina
Income Tax Owed	$41,455	$52,657
After Tax Income	$208,545	$197,343
Income After Income & Property Tax	$204,726	$195,671
Maximum Disposable Income After Income, Property & Sales Taxes	$189,211	$182,905

FAQ

Does Texas or North Carolina have lower income taxes?

Texas’s income tax falls into the following range: None

Whereas North Carolina’s income tax is the following 4.99%

Does Texas or North Carolina have lower property taxes?

Texas has an average property tax rate of 1.25%

In comparison, North Carolina has an average property tax rate of 0.52%

Does Texas or North Carolina have lower sales taxes?

Texas has a state sales tax rate of 6.25% and an average local rate of 1.95% for a combined total rate of 8.20%.

In contrast, North Carolina has a state sales tax rate of 4.75% and an average local rate of 2.23% for a combined total rate of 6.98%.

Do you get to keep more money in Texas or North Carolina?

Based on median household income after income, property and sales taxes Texas gives you a maximum amount of disposable income of $56,961

In comparison, North Carolina gives you $50,200.

More Comparisons:

Texas vs Michigan
Texas vs New Jersey
Texas vs Virginia
Texas vs Washington
Texas vs Arizona

Sources:

https://en.wikipedia.org/wiki/State_income_tax#Rates_by_jurisdiction

https://www.bankrate.com/real-estate/property-tax-by-state/#by-state

https://fred.stlouisfed.org/release/tables?eid=259515&rid=249

https://www.fool.com/the-ascent/research/average-house-price-state/

https://taxfoundation.org/data/all/state/2022-sales-taxes/

https://www.forbes.com/advisor/income-tax-calculator/