North Carolina brokerage account growth calculator

What a taxable index-fund account is actually worth after expense-ratio drag and after North Carolina takes its share of the gain — which, in most states, is not at the federal preferential rate.

North Carolina taxes your gains as ordinary income

There is no state equivalent of the federal preferential rate here — a long-term gain is charged at North Carolina's normal income brackets, exactly like wages. This is the common case, and it surprises people who assume the federal 15% carries over. Long-term capital gains are taxed as ordinary income at the flat 3.99%. North Carolina taxable income begins from federal AGI, which already includes net capital gain, and the state's individual income tax statute provides no preferential rate, no holding-period discount, and no general exclusion. The federal preferential long-term rate does NOT carry over. The flatness cuts both ways here: unlike a graduated state, a very large gain does not push the North Carolina rate up, so the marginal state cost of a liquidity event is the same 3.99% as the marginal cost of a paycheck.