Beginning with the 2009 tax year, individuals within certain income thresholds will be required to pay a surtax on the amount of income tax owed on Line 14 of the D-400 Individual Income Tax return, before withholding, payments or credits are applied. The table below details the surtax percentage by filing status and income threshold.
NC Surtax Percentage Table
Filing Status NC Taxable Income Surtax
Shown on Line 13 Percentage
Married Filing Jointly/ Greater Than $100, 000 up to $250,000 2%
Surviving Spouse
Married Filing Jointly/ Greater Than $250,000 3%
Surviving Spouse
Single Greater Than $60,000 up to $150,000 2%
Single Greater Than $150,000 3%
Head of Household Greater Than $80,000 up to $200,000 2%
Head of Household Greater Than $200,000 3%
Married Filing Separately Greater Than $50,000 up to $125,000 2%
Married Filing Separately Greater Than $125,000 3%
For example, taxpayers’, Mark and Meg Monroe, filing status is “Married Filing Jointly” and their NC taxable income shown on Line 13 of the 2009 Form D-400 is $180,000, then Meg would compute their “regular” NC income tax on Line 14 and multiply that amount by 2%. The resulting surtax would be added to their “regular” tax on Line 14 to produce the Monroe’s total NC income tax liability. Meg will then subtract withholding payments, other payments and any applicable credits to determine whether a refund is due or additional tax is owed.
Please note that there is no penalty/interest for underpayment of estimated tax if the underpayment is because of the surtax.