Mortgage Interest Deduction in North Carolina
State income tax rate
3.99%
Itemized deductions allowed
✅ Yes
State-Level Mortgage Interest Deduction
North Carolina has a flat 3.99% tax rate and allows itemized deductions including mortgage interest on state returns.
Combined Federal + North Carolina Savings
If you paid $18,000 in mortgage interest last year and itemize on both returns, your combined tax savings would be approximately:
- Federal (22% bracket): $3,960
- North Carolina (3.99% rate): $718
- Total estimated savings: $4,678
These are estimates based on a 22% federal bracket. Your actual savings depend on your specific tax situation.