Bottom line: Yes - moving from Virginia to North Carolina lowers your state income tax. On a $75,000 salary you would keep about $1,028 more per year.
| Salary (single) | Virginia tax | North Carolina tax | Difference |
|---|---|---|---|
| $50,000 | $2,158 | $1,505 | Save $653 |
| $75,000 | $3,595 | $2,567 | Save $1,028 |
| $100,000 | $5,033 | $3,630 | Save $1,403 |
| $150,000 | $7,908 | $5,755 | Save $2,153 |
| $250,000 | $13,658 | $10,005 | Save $3,653 |
Virginia: Virginia has four brackets with a top rate of 5.75% and provides its own standard deduction.
North Carolina: North Carolina has been reducing its flat rate annually and reached 4.25% for 2026.
Your state income tax is set by where you are a resident, not where your employer is. To stop paying Virginia tax you must genuinely establish residency in North Carolina - register to vote, change your driver's license and car registration, move your primary home, and spend more than half the year there. High-tax states like Virginia audit departing high earners, so keep records of your move date.
In the year you move you typically file a part-year resident return in both states: Virginia taxes income earned while you lived there, North Carolina taxes the rest. Remote workers should note that a handful of states tax income sourced to the state even for non-residents - check before assuming a clean break.
North Carolina has a flat state income tax of 4.25%.
On a $75,000 single-filer salary, the state income tax difference is about $1,028/year (in your favor). Use the calculator for your exact income.
Once you establish residency in North Carolina and break Virginia residency, new income is taxed by North Carolina. Virginia can still tax income earned while you were a resident - file a part-year return for the move year.
Virginia tax calculator · North Carolina tax calculator · Paycheck calculator
Estimates use 2026 state brackets and the standard deduction for a single filer; they exclude local taxes, credits and federal tax. Verify with a tax professional before relocating.