Selling a business in North Carolina: what the state takes (2026)
North Carolina’s top individual income tax rate is 3.99%. Here is what an owner selling company stock pays, with 2026 rules from official sources and worked examples at $10 million, $25 million and $50 million.
- 3.99%
- Top North Carolina income tax rate (2026)
- $997,500
- State tax on a $25M long-term gain
- 27.8%
- Combined federal and state rate on $25M
- 31 of 51
- Rank by total tax on $25M (1 = highest)
How North Carolina taxes a business sale
- Income tax
- Top rate 3.99%: Flat rate on all taxable income.
- Long-term capital gains
- Capital gains are taxed as ordinary income at the flat 3.99% rate for 2026; there is no exclusion or preferential rate.
Three worked examples
| Long-term gain | $10,000,000 | $25,000,000 | $50,000,000 |
|---|---|---|---|
| Federal capital gains tax (20%) | $2,000,000 | $5,000,000 | $10,000,000 |
| Net investment income tax (3.8%) | $380,000 | $950,000 | $1,900,000 |
| North Carolina tax | $399,000 | $997,500 | $1,995,000 |
| Total tax | $2,779,000 | $6,947,500 | $13,895,000 |
| Effective combined rate | 27.79% | 27.79% | 27.79% |
| Net proceeds after tax | $7,221,000 | $18,052,500 | $36,105,000 |
| Extra tax versus Texas | $399,000 | $997,500 | $1,995,000 |
Seller’s tax calculator
Estimate federal and state tax on a stock sale and what is left before fees and debt.
- Long-term capital gain
- $25,000,000
- Federal capital gains tax (20%)
- $5,000,000
- Net investment income tax (3.8%)
- $950,000
- North Carolina tax
- $997,500
- Taxable gain at 3.99%
- $997,500
- Total tax
- $6,947,500
- Effective rate on the gain
- 27.79%
- Net proceeds after tax
- $18,052,500
Illustration, not tax advice. Assumes a resident individual, the whole gain long-term, top marginal rates, no state credits, installment terms, QSBS exclusion or other planning, and no local taxes. Net proceeds are before transaction fees, debt repayment, escrows and earn-outs. Rates are for tax year 2026 where published; see the methodology.
Compare with other states
Neighboring states
- Georgia28.8% combined, $17.80M net
- South Carolina26.7% combined, $18.32M net
- Tennessee23.8% combined, $19.05M net
- Virginia29.5% combined, $17.61M net
Common comparisons
- California37.1% combined, $15.72M net
- New York34.1% combined, $16.48M net
- Texas23.8% combined, $19.05M net
- Florida23.8% combined, $19.05M net
- Nevada23.8% combined, $19.05M net
- Washington33.5% combined, $16.63M net
Methodology and sources
North Carolina figures are for tax year 2026. 2026 rate 3.99% per G.S. 105-153.7(a); S.B. 257 (signed July 7, 2026) cuts the rate to 3.49% for 2027-2029 and further later, leaving 2026 unchanged. The examples assume a resident individual selling privately held stock for a long-term gain equal to the sale price (zero basis), with every dollar taxed at the top marginal rates, the federal 20% capital gains rate and the 3.8% net investment income tax, and no planning, credits or local taxes. Full assumptions are in the report methodology.
All 50 states and DC with source URLs.
- 1N.C.G.S. 105-153.7 (individual income tax rate)
- 2EY Tax News 2026-1630: North Carolina law progressively lowers personal income tax rate (S.B. 257). Secondary source
- 3Tax Foundation, State Individual Income Tax Rates and Brackets, 2026 (as of Feb 11, 2026). Secondary source
Data last updated October 26, 2026.
Cite this research
You may quote and republish figures from this page with attribution and a link to the source.
Citation
Laurent Capital Research, “The Seller’s Tax Map: What Selling a Business Costs in Every State (2026): North Carolina,” 2026, https://laurent.capital/research/seller-tax-map/north-carolinaLink (HTML)
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