Durham, NC Taxes 2025
Complete local tax guide and OBBBA calculator
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Durham Tax Overview 2025
Research Triangle city with growing tech sector.
Local Income Tax
0%
City/county rate
Sales Tax
7.50%
State + local
Property Tax
1.06%
Effective rate
Median Home
$340,000
Home value
No Local Income Tax!
Durham does not impose a local income tax on residents, which means you only pay state income tax (if applicable) and federal taxes.
State Tax Information
Durham is located in North Carolina (4.75% state income tax)
💼 Durham Local Income Tax
Durham does not impose a local income tax on residents. Your income tax obligations are limited to state income tax (if applicable in North Carolina) and federal income tax.
This is good news for Durham residents, as it means one less tax to worry about compared to cities that do impose local income taxes.
Total Income Tax Burden in Durham
🛒 Durham Sales Tax 2025
The combined sales tax rate in Durham is 7.50%. This includes both the North Carolina sales tax and any local sales taxes.
Sales tax applies to most retail purchases in Durham. Some items like groceries, prescription medications, and clothing may be exempt or taxed at reduced rates depending on North Carolina law.
Sales Tax Breakdown
Sales Tax Examples
| Purchase Amount | Sales Tax | Total |
|---|---|---|
| $50 | $3.75 | $53.75 |
| $100 | $7.50 | $107.50 |
| $500 | $37.50 | $537.50 |
| $1,000 | $75.00 | $1,075.00 |
🏠 Durham Property Tax 2025
The average effective property tax rate in Durham is 1.06%. Based on the median home value of $340,000, the typical homeowner pays approximately $3,604 per year in property taxes.
Property taxes fund local services including schools, police, fire departments, roads, and parks. Rates vary by specific location within Durham based on school district and other taxing authorities.
Estimated Annual Property Tax in Durham
| Home Value | Annual Tax | Monthly | SALT Deductible? |
|---|---|---|---|
| $200,000 | $2,120 | $177 | ✓ Yes |
| $300,000 | $3,180 | $265 | ✓ Yes |
| $400,000 | $4,240 | $353 | ✓ Yes |
| $500,000 | $5,300 | $442 | ✓ Yes |
| $750,000 | $7,950 | $663 | ✓ Yes |
| $1,000,000 | $10,600 | $883 | ✓ Yes |
💡 SALT Tip: Under the OBBBA, you can deduct up to $40,000 in state and local taxes (SALT) on your federal return. This includes property taxes, state income taxes, and local income taxes.
💰 Durham Cost of Living
Housing Costs
Tax Summary
OBBBA Tax Benefits for Durham Residents
Tech and healthcare workers benefit from OBBBA deductions.
The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, introduced several federal tax deductions that can significantly reduce your tax burden as a Durham resident.
Available OBBBA Deductions:
Calculate Your Durham Tax Savings
Use our free OBBBA calculator to see exactly how much you could save on your 2025 federal taxes as a Durham resident.
Calculate My SavingsFrequently Asked Questions
What is the sales tax in Durham?
The combined sales tax rate in Durham is 7.50%. This includes both state and local sales taxes.
Does Durham have a local income tax?
Durham has a local income tax of 0%. This is in addition to any state and federal income taxes.
What is the property tax rate in Durham?
The average effective property tax rate in Durham is 1.06%. On a home worth $340,000, you'd pay approximately $3,604 per year.
How do OBBBA deductions benefit Durham residents?
Tech and healthcare workers benefit from OBBBA deductions. You can use our free calculator to estimate your total savings from tips, overtime, auto loan interest, SALT, and senior bonus deductions.