Raleigh, NC – North Carolina offers seniors additional tax relief through an extra standard deduction for residents aged 65 and older. This deduction is designed to reduce the financial burden for older adults living on fixed incomes, particularly those relying on Social Security, pensions, or retirement savings.
Here’s a detailed guide on what the extra deduction means, who qualifies, and how it can impact your 2025 state taxes.
Standard Deduction in North Carolina
The standard deduction is a fixed amount taxpayers can subtract from their taxable income before state taxes are calculated. It automatically reduces tax liability without requiring itemized deductions as per AARP.
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 Tax Deduction for Seniors Over 65
Seniors in North Carolina receive an additional deduction on top of the base amount. For 2025:
- Single filers aged 65 or older get an extra $1,500.
- Married couples filing jointly can claim $3,000 if both spouses are over 65.
This benefit is automatic when you indicate your age on your North Carolina tax return, requiring no extra applications.
Who Qualifies?
To qualify for the extra deduction, you must:
- Be a North Carolina resident
- Be 65 years of age or older by December 31, 2025
- File your state income taxes (Form D-400)
Even seniors who do not itemize deductions or do not owe federal income taxes may still benefit from this state-level deduction.
How This Helps Seniors
The extra deduction can significantly help seniors on fixed retirement incomes. Benefits include:
- Reducing or eliminating state income tax liability
- Freeing up funds for medical expenses, housing, and daily living costs
- Providing relief alongside Social Security exemptions and other retirement account tax benefits in North Carolina
By lowering taxable income, this deduction ensures that seniors can keep more of their hard-earned retirement income each year.
Last Words
With the rising cost of living in North Carolina, every dollar matters for seniors. The extra standard deduction for residents over 65 provides meaningful financial relief at tax time, helping retirees maintain stability and cover essential expenses.
Seniors in North Carolina are encouraged to check their eligibility and claim this deduction on their 2025 taxes to maximize savings.
Share your experience or questions about North Carolina tax deductions in the comments below.
