by RALEIGH, N.C. – North Carolina provides additional tax relief for older adults through an extra standard deduction for residents aged 65 and older. This deduction is designed to ease the financial burden for seniors living on fixed incomes, particularly those relying on Social Security, pensions, or retirement savings.
In this guide, we break down what the deduction means, who qualifies, and how it impacts your state taxes in 2025.
What Is the North Carolina Standard Deduction?
The standard deduction is the amount of income you can subtract from your taxable income before state taxes are calculated. It’s an automatic benefit that reduces your tax liability without needing itemized deductions.
For the 2025 tax year, North Carolina’s standard deduction amounts are:
- $25,500 for Married Filing Jointly
- $12,750 for Single filers
- $19,125 for Head of Household
- $12,750 for Married Filing Separately
Extra Deduction for Seniors Over 65
Seniors in North Carolina get an additional standard deduction on top of the base amount.
For tax year 2025:
- An extra $1,500 is available for single filers aged 65 or older.
- Married couples filing jointly can claim $3,000 if both spouses are over 65.
This benefit is automatic if you indicate your age on your North Carolina tax return, meaning no extra application is required.
Read Also: Understanding the Georgia Extra Standard Deduction for Seniors Over 65
Who Qualifies?
To qualify for the extra deduction, you must:
- Be a North Carolina resident.
- Be 65 years of age or older by the last day of the tax year (December 31, 2025).
- File your state income taxes (Form D-400).
Even if you don’t itemize deductions or don’t owe federal income taxes, you may still benefit from the extra standard deduction at the state level.
How It Helps Seniors
The deduction is particularly valuable for seniors on fixed retirement incomes. By lowering taxable income, it may:
- Reduce or eliminate your state income tax liability.
- Free up more funds for medical costs, housing, and daily living expenses.
- Provide additional relief alongside Social Security exemptions and retirement account tax breaks already available in North Carolina.
Comparison Table: Standard Deduction in North Carolina (2025)
| Filing Status | Standard Deduction | Extra Deduction (65+) | Total Deduction (65+) |
|---|---|---|---|
| Single | $12,750 | +$1,500 | $14,250 |
| Married Filing Jointly | $25,500 | +$3,000 (if both over 65) | $28,500 |
| Head of Household | $19,125 | +$1,500 | $20,625 |
| Married Filing Separately | $12,750 | +$1,500 | $14,250 |
Key Takeaway for Seniors
The North Carolina extra standard deduction for seniors over 65 offers meaningful financial relief at tax time. By claiming this benefit, seniors can keep more of their retirement income while facing lower state taxes.
For more details, visit the North Carolina Department of Revenue’s official tax page and consult a tax professional to ensure you maximize your benefits.
Final Thoughts
With retirement costs rising, every dollar saved matters. North Carolina’s extra standard deduction for older adults is a valuable way to reduce state tax burdens and provide some financial breathing room for seniors.
Do you think North Carolina should expand tax breaks for seniors even further to cover rising healthcare and housing costs? Share your thoughts in the comments at ibwhsmag.com.
