The Tax Brief real effective rates for 111+ countries — bi-weekly, free.
HEAD-TO-HEAD TAX COMPARISON · 2026

COUNTRY A North Carolina VS COUNTRY B Colorado

Side-by-side analysis of income tax, effective rates, and take-home pay for North Carolina and Colorado in 2026.

Daniel · CountryTaxCalc Updated August 2026 Tax Comparison 2026
Calculate your take-home → See all comparisons →
OVERVIEW
North Carolina and Colorado are both flat-tax states with rates just under half a percentage point apart, making this one of the more modest comparisons on the site — but the gap is consistent and grows steadily with income since neither state's rate depends on income level. At $100,000, North Carolina's $3,348 state tax bill is $344/year lower than Colorado's $3,692, and the gap widens to $959/year at $250,000 and $1,984/year at $500,000. Property tax adds to North Carolina's advantage in most cases: its average effective rate of roughly 0.66% sits above Colorado's roughly 0.50% (among the lower rates nationally), meaning Colorado actually wins on property tax even though it loses on income tax — a genuine trade-off depending on home value versus income level. Retirement income treatment differs meaningfully too: North Carolina's 'Bailey settlement' fully exempts government pensions vested by August 12, 1989, and fully exempts military retirement pay after 20+ years of service, while Colorado gives residents 65+ a full Social Security subtraction plus up to $24,000 of other retirement income exempt, with a smaller $20,000 cap for those 55-64 under certain income limits.
Section 01

The Big Picture

Top-line rates and effective take-home for a typical earner — including income tax, social contributions, and applicable surcharges.

🏔️
COUNTRY A
North Carolina
TAX RATE
3.99%
Flat Tax

Flat 3.99% for 2026, phased down from a 7.75% top rate in 2013; no local income tax anywhere

⛰️
COUNTRY B
Colorado
TAX RATE
4.4%
Flat Tax

Flat 4.4% rate, down from 4.55% in 2020; protected from increases without voter approval under TABOR

TYPICAL ANNUAL DIFFERENCE
Moving from Colorado → North Carolina at $100,000
$344

That's $29/month back in your pocket

Section 02

Tax Savings by Income Level

Net take-home after all income tax, social contributions, and surcharges — for a single employee with no dependents.

GROSS INCOME
🏔️ NC TAX
⛰️ CO TAX
SAVINGS
10-YEAR
$50,000
$1,353
$1,492
$139
$1,390
$75,000
$2,350
$2,592
$242
$2,420
$100,000
$3,348
$3,692
$344
$3,440
$150,000
$5,343
$5,892
$549
$5,490
$250,000
$9,333
$10,292
$959
$9,590
$500,000
$19,308
$21,292
$1,984
$19,840
💡

CountryTaxCalc.com is reader-supported. When you use our partner links, we may earn a commission at no cost to you. This helps us provide free tax calculators and comparison tools. Learn more about our affiliate partnerships

Talk to a Real CPA

Taxhub

★ 4.8 verified reviews  ·  3,758 reviews

Moving between states means a complex multi-state tax return. Taxhub matches you with a real CPA via video call — average cost $325. Rated 4.8★ by 3,700+ clients.

⚠ Not for simple single-state returns. Free filing is fine for straightforward W-2 situations.

Get Matched With a CPA →

Interested in reaching this audience? Advertise on CountryTaxCalc →

🏔️

North Carolina Pros & Cons

+ PROS
  • Flat 3.99% income tax beats Colorado's flat 4.4% at every income level, saving $139 to $1,984/year
  • 'Bailey settlement' fully exempts government pensions vested by August 12, 1989, and fully exempts military retirement pay after 20+ years of service
  • No local income tax anywhere in the state — no city adds a wage tax on top of the flat state rate
  • One of the lowest flat-tax rates in the country, down from a 7.75% top rate in 2013 through a decade-plus of phased reductions
− CONS
  • Higher average property tax (~0.66%) than Colorado (~0.50%), which claws back some of North Carolina's income-tax advantage for homeowners with a valuable property
  • Most private pensions, 401(k), and IRA withdrawals are taxed at the full 3.99% flat rate for retirees who don't qualify for the Bailey settlement or military exemption
  • Smaller, more regionally concentrated tech and outdoor-recreation economy than Colorado's Denver/Boulder corridor
  • No income-based retirement subtraction comparable to Colorado's $24,000 exemption for 65+ retirees with private pension or 401(k)/IRA income
⛰️

Colorado Pros & Cons

+ PROS
  • One of the lower average property tax rates in the country (~0.50%) — below North Carolina's ~0.66%
  • TABOR constitutional protection requires voter approval for any state tax rate increase, offering long-term rate stability
  • Residents 65+ get a full Social Security subtraction plus up to $24,000 of other pension/401(k)/IRA income exempt from state tax
  • Denver/Boulder tech corridor (Google, Amazon, Lockheed Martin) offers a deep, high-paying job market alongside a $62 billion outdoor recreation industry
− CONS
  • Flat 4.4% income tax is higher than North Carolina's 3.99% at every income level, costing $139 to $1,984/year more
  • No blanket exemption for military retirement pay comparable to North Carolina's full exemption after 20+ years of service
  • Those 55-64 only get a full Social Security subtraction if AGI is under $75,000 (single) or $95,000 (joint); above that, a smaller $20,000 combined cap applies
  • Rapid Front Range population growth has pushed housing costs and overall cost of living up sharply in recent years
FAQ

Frequently Asked Questions

Is North Carolina or Colorado cheaper for state income tax?

North Carolina is cheaper at every income level. At $100,000, North Carolina's flat 3.99% costs $3,348 versus Colorado's flat 4.4% at $3,692 — a $344/year difference. That gap grows to $959/year at $250,000 and $1,984/year at $500,000, since the roughly 0.4-percentage-point rate difference compounds on larger incomes.

Which state has lower property tax, North Carolina or Colorado?

Colorado has the lower average effective property tax rate at roughly 0.50%, among the lower rates nationally, compared to North Carolina's roughly 0.66%. On a $400,000 home, that's about $2,000/year in Colorado versus $2,640/year in North Carolina — a $640/year advantage for Colorado that partially offsets its higher income tax.

So which state actually wins on combined income plus property tax?

It depends on home value relative to income. At $100,000 income with a $400,000 home, North Carolina's income-tax savings (about $344/year) are smaller than Colorado's property-tax savings (about $640/year), so Colorado actually comes out ahead by roughly $296/year in that specific scenario — even though North Carolina wins on income tax alone.

Does either state tax retirement income like 401(k) and IRA withdrawals?

Both states fully exempt Social Security (Colorado's exemption is age- and income-dependent for those under 65). North Carolina fully exempts government pensions vested by August 12, 1989 (the Bailey settlement) and military retirement pay after 20+ years of service, but taxes other pensions and 401(k)/IRA withdrawals at 3.99%. Colorado gives residents 65+ a subtraction of up to $24,000 for pension, annuity, and 401(k)/IRA income, with a smaller $20,000 cap for those 55-64 under certain income limits.

How much would I save moving from Colorado to North Carolina?

At $100,000 income, moving from Colorado to North Carolina saves about $344/year in state income tax. However, North Carolina's higher property tax (~0.66% vs Colorado's ~0.50%) means the net savings depend heavily on home value — a $400,000 home would actually cost about $296/year more overall in North Carolina once property tax is factored in.

Does either state have an estate or inheritance tax?

Neither state has an estate or inheritance tax. Both North Carolina and Colorado repealed their estate taxes years ago, so neither is a consideration for residents of either state doing estate planning.

How do capital gains taxes compare between North Carolina and Colorado?

Both states tax capital gains as ordinary income at their flat rates — 3.99% in North Carolina and 4.4% in Colorado. Colorado offers a narrow subtraction for gains on qualifying agricultural property and certain small business stock, but most investment gains in both states are taxed at the full flat rate.

Is Charlotte/Raleigh or Denver better for job opportunities?

North Carolina's Research Triangle (Raleigh-Durham) and Charlotte offer strong banking, tech, and biotech job markets. Denver/Boulder has a concentrated technology corridor (Google, Amazon, Lockheed Martin) plus a $62 billion outdoor recreation industry. Both states have growing, diversified economies; North Carolina's lower income tax gives it a modest take-home-pay edge at comparable salaries.
From the brief
NL27%new 2027 rate, down from 30%
DK65.4kkr/mo threshold, cut from 78k
MT1940snon-dom regime unchanged since
The Tax Brief · Subscribe free

More like this, every two weeks.

Verified rates, real after-tax figures, plain English. Free.

Bi-weekly. No spam. Unsubscribe in one click.