North Carolina Tax Extension: Your Guide

A tax extension can give you the time to file without fear of penalties. 

Remember, the filing deadline may be extended, but taxes owed must be paid by the original due date to avoid penalties and interest. 

Knowing who qualifies and how to request an extension will save you time and money. 

So, how do you get a tax extension in North Carolina? 

Continue reading.

Overview of North Carolina Tax Extension Requirements

What is a Tax Extension?

A tax extension gives you more time to file your income tax return without penalties. However, it does not extend the time to pay any taxes owed. Any taxes owed must be paid by the original due date, typically April 15th, to avoid interest and penalties.

In North Carolina, you don't need to file a separate state extension if you've already filed for a federal extension. North Carolina automatically grants a state extension if you certify it on your state return by filling in the "federal extension" circle on Page 1 of your North Carolina tax return. If you need to make a payment, you must use Form D-410.

Important North Carolina Extension Deadlines and What They Include

When is the Deadline to File a Tax Extension for North Carolina?

Typically, April 15th. The deadline to file a tax extension in North Carolina is the same as the federal tax extension deadline. However, it can vary if April 15th falls on a weekend or a holiday, in which case the deadline will be the next business day.

Do I Need to File a Separate Tax Extension for North Carolina If I Already Filed a Federal Tax Extension?

No, if you have completed IRS Form 4868, you don’t need to file an extension in North Carolina.  You must certify on your North Carolina return D-400, “I certify that I was granted a Federal extension” (Fill in the circle “Yes”). If you need to make a payment, you must complete the D-410.   

Here is North Carolina's worksheet for estimating your tax liability. 

If I File a Tax Extension For North Carolina, When Is My New Deadline?

If you file a tax extension, your new deadline to submit your state tax return will be October 15th, the same as the federal extension deadline.

Failure to Pay and Failure to File Penalties

Failure to File

• 5% per month up to 25%

Failure to Pay

• 5% of unpaid tax (Starting July 1, 2027, the late payment penalty will be 2% each month up to 10%)
• If you paid 90% of the total taxes owed by the original deadline, the failure to pay is waived during the extension period. However, pay the remaining balance on or before the extended deadline, or you will face a late payment penalty.

Interest

• Interest rate varies annually. It accrues daily starting from the original due date.

North Carolina Individual Income Tax Extension Video

How Do I File a North Carolina Tax Extension?

If you haven’t filed for a federal tax extension or need help completing FORM-4868, we have resources that can help. Click HERE to get started.

If you already have a federal tax extension, no additional extension will be needed for North Carolina.  However, if you need to submit a payment, you must complete Form D-410.  To file a North Carolina tax extension, you can use the online service provided by the North Carolina Department of Revenue or submit Form D-410. You can access the online service through this link or download and mail the form from here.

North Carolina Cash and Taxes Fund Balances

The graph indicates the tax compliance rates over five fiscal years (2018-2019 to 2022-2023) for three categories: statewide, taxpayers with $100,000,000 and above, and taxpayers with $99,999,999 and below.

Key insights include:

High Compliance Among Large Taxpayers:

• Taxpayers with $100,000,000 and above have a consistently high compliance rate, always above 99%. This suggests that larger taxpayers are generally more compliant with their tax obligations.

Statewide Compliance:

• The statewide compliance rate hovers between 98% and 99%, indicating that, on average, most taxpayers across the state are meeting their tax obligations.

Lower Compliance Among Smaller Taxpayers:

• Taxpayers with $99,999,999 and below have the lowest compliance rates in each fiscal year, usually slightly below 99%. This group shows more variability and a slightly lower level of compliance compared to larger taxpayers and the statewide average.

Overall, the graph suggests that larger taxpayers are more reliable in meeting tax obligations, while there is a slight drop in compliance among smaller taxpayers, which may require targeted measures to improve their compliance rates.

Conclusion

A tax extension gives you the time you need to get your taxes right. Knowing the North Carolina requirements and deadlines will save you penalties and interest. Remember, an extension gives you more time to file but not more time to pay. Use the resources and file and pay on time to be tax compliant.