Hey y’all! We are a military family living in NC my husband and I are not from here. Did I make a mistake or is it normal to be paying over $700 on state taxes?

[SusanY1]

Maybe.  North Carolina has a flat income tax rate of 5.25% rate after the standard deduction of 20,000 for married couples filing jointly.

However, it is typical for members of the military to continue to file their taxes in their Home of Record (HOR) or State of Legal Residence (SLR), rather than in their current resident state so you may not need to file a North Carolina return depending on your circumstances. 

We have a very helpful guide for members of the military and their families that you may find helpful here: Military Personnel Tax Tips.

Welcome to North Carolina and thank you for your service! 

[TomD8]

It's very possible neither you nor your husband have to file a North Carolina return, due to MSRRA.

What is your active duty husband's HOR (Home of Record) with the military?  Active duty servicemembers whose only income is military pay file taxes in their Home of Record, not in the state where they happen to be stationed due to military orders.  The spouse of an active duty servicemember may choose to file in her servicemember's home of record (even if she's never lived there), or in her own home state (it's the spouse's choice).  She is not required to file in the state where she happens to be stationed with her husband. 

[hank-oilouch]

Our HOR is out of the country (South Pacific Island). I already filled and it said we owe 700 in state tax. 

[TomD8]

Being in the military doesn’t necessarily mean you’re tax-exempt in your HOR.  It means that you’re military pay is tax-exempt by NON-RESIDENT states.   But your HOR may be one that taxes military pay.