Does the bailey settlement in NC state taxes apply to retirement from FL educator pension?

david2929 — Tue, 10 Feb 2026 11:06:36 GMT

What is the Bailey Settlement?

Re: Does the bailey settlement in NC state taxes apply to retirement from FL educator pension?

TomK2023 — Wed, 21 Feb 2024 15:22:02 GMT

No. Your pension from Florida is taxable in North Carlina at a flat income tax rate of 4.75%.

"As a result of the North Carolina Supreme Court's decision in Bailey v. State of North Carolina, North Carolina may not tax certain retirement benefits received by retirees (or by beneficiaries of retirees) of the state of North Carolina and its local governments or by the United States government retirees (including military). The exclusion applies to retirement benefits received from certain defined benefit plans, such as the North Carolina Teachers' and State Employees' Retirement System, the North Carolina Local Governmental Employees' Retirement System, the North Carolina Consolidated Judicial Retirement System, the Federal Employees' Retirement System, or the United States Civil Service Retirement System, if the retiree had five or more years of creditable service as of August 12, 1989. The exclusion also applies to retirement benefits received from the state's §401(k) and §457 plans if the retiree had contributed or contracted to contribute to the plan prior to August 12, 1989. The exclusion does not apply to retirement benefits paid to former teachers and state employees of other states and their political subdivisions."

Please see for more information: North Carolina Department of Revenue: Bailey Decision Concerning Federal, State and Local Retirement Benefits

topic Does the bailey settlement in NC state taxes apply to retirement from FL educator pension? in Retirement tax questions

Does the bailey settlement in NC state taxes apply to retirement from FL educator pension?

Re: Does the bailey settlement in NC state taxes apply to retirement from FL educator pension?