Quick answers
Does North Carolina have a state estate tax?
State estate tax: No. The pinned estate-tax dataset (2026.v2) has no row for North Carolina, so it cites no state statute; the state page records no state estate or inheritance tax.
Does North Carolina have an inheritance tax?
Inheritance tax: No. The pinned estate-tax dataset (2026.v2) has no row for North Carolina, so it cites no state statute; the state page records no state estate or inheritance tax.
Can you use a transfer-on-death deed in North Carolina?
Transfer-on-death deed for real estate: None — not available for real property. No TOD-deed statute enacted — bills failed; verify with the county register of deeds
What is the Medicaid look-back period in North Carolina?
Look-back period: 60 months from the starting point, which is the earliest date the person is institutionalized or requests CAP or PACE and applies for Medicaid (North Carolina Medicaid Manual MA-2240, Transfer of Assets; Revised December 8, 2025 — Change No. 11-25).
Does North Carolina tax Social Security benefits?
Social Security benefits: Exempt (2025 D-401 Individual Income Tax Instructions; tax year 2025).
State estate tax
Estate-tax dataset 2026.v2
- State estate tax
- NoNo dataset row
The pinned estate-tax dataset (2026.v2) has no row for North Carolina, so it cites no state statute; the state page records no state estate or inheritance tax.
· Checked July 20, 2026
Full detail: North Carolina estate and inheritance tax page
Inheritance tax
Estate-tax dataset 2026.v2
- Inheritance tax
- NoNo dataset row
The pinned estate-tax dataset (2026.v2) has no row for North Carolina, so it cites no state statute; the state page records no state estate or inheritance tax.
· Checked July 20, 2026
Full detail: North Carolina estate and inheritance tax page
Transfer-on-death deed
- Transfer-on-death deed for real estate
- None — not available for real propertyNot primary-verified
No TOD-deed statute enacted — bills failed; verify with the county register of deeds
· Checked July 26, 2026
- Controlling statute
- Not primary-verified
No TOD-deed statute enacted — bills failed; verify with the county register of deeds
· Checked July 26, 2026
Full detail: North Carolina transfer-on-death deed page
Small-estate procedure
- Affidavit ceilings
- $20,000 after 30 days; $30,000 when a surviving spouse is sole heirVerified
Source: N.C. Gen. Stat. §§ 28A-25-1 and 28A-25-1.1 · Effective: current · Checked August 23, 2026
Full detail: North Carolina small-estate procedure page
Medicaid long-term-care eligibility
Medicaid dataset 2026.v16
- MAABD one-person income standard
- $1,330 per monthVerified
- Applies to: one-person household.
Source: North Carolina DHHS 2026 Non-MAGI Income and Reserve Limits · Effective: Effective April 1, 2026 · Checked September 2, 2026
- MAABD applicant reserve limit
- $2,000Verified
- Applies to: single applicant.
Source: North Carolina DHHS 2026 Non-MAGI Income and Reserve Limits · Effective: Effective April 1, 2026 · Checked September 2, 2026
- Current community-spouse resource allowance
- $32,532 minimum to $162,660 maximumVerified
- Applies to: institutionalized applicant with a community spouse.
Source: North Carolina Medicaid Manual MA-2231, Community Spouse Resource Protection · Effective: 2026 amounts effective January 1, 2026; manual revised December 8, 2025 · Checked September 2, 2026
- Basic community-spouse maintenance allowance
- $2,705 per monthVerified
- Applies to: institutionalized applicant with a community spouse; $812 shelter standard and $902 maximum dependent-family allowance are separate calculation inputs.
Source: North Carolina DHHS Change Notice 08-2026 · Effective: Basic spousal allowance and shelter standard effective July 1, 2026 · Checked September 2, 2026
- Current home-equity limit
- $752,000Verified
- Applies to: applicant subject to North Carolina's substantial-home-equity rule.
Source: North Carolina Medicaid Manual MA-2242, Home Equity Value and Eligibility for Institutional Services · Effective: 2026 amount effective January 1, 2026; manual revised December 8, 2025 · Checked September 2, 2026
Full detail: North Carolina Medicaid eligibility page
Medicaid look-back
Medicaid dataset 2026.v16
- Look-back period
- 60 months from the starting point, which is the earliest date the person is institutionalized or requests CAP or PACE and applies for MedicaidVerified
Source: North Carolina Medicaid Manual MA-2240, Transfer of Assets · Effective: Revised December 8, 2025 — Change No. 11-25 · Checked September 2, 2026
- Transfer-penalty divisor
- $396 per dayVerified
Source: North Carolina DHHS Change Notice 07-26 · Effective: Dated June 8, 2026; effective upon receipt · Checked September 2, 2026
- How the state administers the penalty
- North Carolina reviews all transfers on or after the fixed look-back date; cumulative uncompensated transfers in the period are treated as one transfer and one sanction period. The local agency does not delay initial institutional-services approval solely for the transfer review and must complete the evaluation within three full calendar months.Verified
Source: North Carolina Medicaid Manual MA-2240, Transfer of Assets · Effective: Revised December 8, 2025 — Change No. 11-25 · Checked September 2, 2026
Full detail: North Carolina Medicaid look-back page
Medicaid estate recovery
Medicaid dataset 2026.v16
- Recovery scope
- North Carolina files a claim against the deceased recipient's estate for covered long-term-care and related services: for permanently institutionalized recipients under 55 and for recipients 55 or older who received covered nursing-facility, CAP or other specified HCBS, personal-care, related hospital, or prescription services under the manual's rules.Verified
Source: North Carolina Medicaid Manual MA-2285, Estate Recovery · Effective: Revised May 22, 2023 — Change No. 08-23 · Checked September 2, 2026
- Controlling authority
- North Carolina General Statutes § 108A-70.5, administered through Medicaid Manual MA-2285.Verified
Source: North Carolina Medicaid Manual MA-2285, Estate Recovery · Effective: Revised May 22, 2023 — Change No. 08-23 · Checked September 2, 2026
- Exemptions and deferrals
- DHB waives recovery when total estate assets are under $50,000 or total Medicaid benefits paid are under $10,000, and defers while a spouse survives, a child is under 21, or a child of any age is blind or disabled.Verified
Source: North Carolina Medicaid Manual MA-2285, Estate Recovery · Effective: Revised May 22, 2023 — Change No. 08-23 · Checked September 2, 2026
- Hardship waiver
- A hardship claim must be filed within 60 days of notice. Grounds include qualifying sole-income-producing estate property with household income below 200% of the federal poverty level, or forced sale of a qualifying heir's residence under the manual's residency, income, ownership, and asset tests.Verified
Source: North Carolina Medicaid Manual MA-2285, Estate Recovery · Effective: Revised May 22, 2023 — Change No. 08-23 · Checked September 2, 2026
- Lien practice
- North Carolina estate recovery is a post-death estate claim; MA-2285 expressly states that estate recovery does not include placing a lien on the property. DHB may take legal measures to secure a deferred claim against estate property.Verified
Source: North Carolina Medicaid Manual MA-2285, Estate Recovery · Effective: Revised May 22, 2023 — Change No. 08-23 · Checked September 2, 2026
Full detail: North Carolina Medicaid estate-recovery page
State income tax on retirement income
Retirement-income tax dataset 2026.v4
- Social Security benefits
- ExemptVerified
- Social Security benefits included in federal adjusted gross income are deducted from North Carolina income.
Source: 2025 D-401 Individual Income Tax Instructions · Effective: tax year 2025 · Checked December 31, 2025
- Public pensions
- Exempt when conditions are metVerified
- Qualifying Bailey public retirement benefits are exempt; other public pensions are not inferred exempt.
- The plan must be a qualifying North Carolina state/local or federal government retirement system under Bailey; other-state plans are excluded.
- Generally requires at least five years of creditable service as of August 12, 1989, subject to plan-specific rules.
Source: 2025 D-401 Individual Income Tax Instructions · Effective: tax year 2025 · Checked December 31, 2025
- Private pensions
- TaxedVerified
- Private pension income follows federal adjusted gross income unless another specifically enumerated deduction applies.
Source: 2025 D-401 Individual Income Tax Instructions · Effective: tax year 2025 · Checked December 31, 2025
- IRA and 401(k) distributions
- Exempt when conditions are metVerified
- Only an exact Bailey-qualified 401(k), 457, or rollover account can preserve exempt treatment; generic IRA/401(k) distributions are not exempt.
- The plan must be a qualifying North Carolina state/local or federal government retirement system under Bailey; other-state plans are excluded.
- Generally requires at least five years of creditable service as of August 12, 1989, subject to plan-specific rules.
- State 401(k)/457 contributions must have been made or contracted before August 12, 1989; local 457 and 403(b) plans do not qualify.
- A rollover can lose Bailey character unless the receiving account independently qualifies.
Source: 2025 D-401 Individual Income Tax Instructions · Effective: tax year 2025 · Checked December 31, 2025
- Military retirement pay
- Exempt when conditions are metVerified
- Qualifying military retirement and Survivor Benefit Plan payments are deductible.
- Requires at least 20 years of service or medical retirement under 10 U.S.C. Chapter 61.
- Severance pay and Thrift Savings Plan payments do not qualify under the military-retirement deduction.
- A qualifying Survivor Benefit Plan beneficiary may deduct the payment.
Source: Important Notice: North Carolina Enacts New Deduction for Certain Military Retirement Pay and Survivor Benefit Plan Payments · Effective: tax year 2021 · Checked August 5, 2022
Full detail: Retirement-income tax dataset, all states (JSON)
About this page
This page assembles entries from datasets the site already publishes; it adds no figure of its own. Entries marked “Not yet verified” or “Pending” have no primary-source value in the underlying dataset yet. Rules change, so confirm anything you plan to act on with the source, the state agency, or a licensed attorney.