You are required to pay estimated income tax if the tax shown due on your return, reduced by your North Carolina tax withheld and allowable tax credits, is $1,000 or more regardless of the amount of income you have that is not subject to withholding. Each payment of estimated tax must be accompanied by Form NC-40, North Carolina Individual Estimated Income Tax. You can also pay your estimated tax online. For details, visit www.ncdor.gov and search for "online file and pay."
For calendar year filers, estimated payments are due April 15, June 15, and September 15 of the taxable year and January 15 of the following year. If you file your income tax return by January 31 of the following year and pay your entire balance, you do not have to make the January 15 payment.
If you do not make the required estimated payments you will owe interest for underpayment of estimated tax. Use Form D-422, Underpayment of Estimated Tax by Individuals, to compute the interest. Interest for underpayment of estimated tax does not apply if you had no tax liability for the previous year.
If you are a farmer or fisherman and you file your return and pay the total tax on or before March 1, you do not have to make estimated payments.
Electronic filing and paying options for estimated income taxes:
- eFile - file Form NC-40 and your estimated tax payments using a tax professional or commercial tax preparation software (see list of approved eFile vendors). Using eFile allows you to file federal and state forms at the same time or separately, and schedule payments as far in advance as 12 months. Free eFile is available for those who qualify.
- Online File and Pay - file Form NC-40 and your associated tax payment using the NCDOR website (no access to federal filing and paying). With this method, you can schedule payments as far in advance as 365 days.
If you are unable to file and pay your North Carolina estimated tax electronically or want to use a paper form, visit Download Forms and Instructions to access instructions and download the paper form; pick up the paper form at one of our Service Centers; or call the Department at 1-877-252-3052 and request that the form be mailed to you. Mail the completed paper form and your estimated payment to the North Carolina Department of Revenue, P.O. Box 25000, Raleigh, N.C. 27640-0630.