State Fiduciary Income Tax

North Carolina Form D-407: The North Carolina Fiduciary Income Tax Return

Estates and trusts connected to North Carolina file Form D-407 with NCDOR — on top of, not instead of, the federal Form 1041. Here is who must file, the deadlines, the rates, and the North Carolina-specific rules that differ from federal.

E-File the Federal 1041Federal Form 1041 Guide

Quick Answer

Form D-407 is North Carolina’s fiduciary income tax return, filed with NCDOR. Due: April 15 for calendar-year filers; the 15th day of the 4th month after a fiscal year ends. Tax: A flat 4.25% for 2025, scheduled by statute to fall to 3.99% for 2026. It is filed in addition to the federal Form 1041 — prepare the federal return first, then the state return that builds on it.

Form D-407 at a glance

ReturnForm D-407 — North Carolina Estates and Trusts Income Tax Return
Filed withNorth Carolina Department of Revenue
Who must fileA fiduciary required to file a federal 1041 files the D-407 when the estate or trust has North Carolina-source income, or income for the benefit of a North Carolina resident.
Due dateApril 15 for calendar-year filers; the 15th day of the 4th month after a fiscal year ends.
ExtensionA federal extension carries over automatically — fill in the federal-extension bubble on the D-407. Without one, file Form D-410P by the original due date. Payment is still due in April.
Tax rateA flat 4.25% for 2025, scheduled by statute to fall to 3.99% for 2026.
E-filingThe D-407 e-files through the Fed/State MeF program via approved software.

What makes North Carolina different

  • North Carolina’s rate is on a legislated glide path — 4.25% for 2025, 3.99% for 2026 — so the same trust income costs less each year, and the correct rate depends on the tax year, not the filing year.
  • The benefit-of-a-resident rule reaches broadly: income accumulated anywhere for a North Carolina resident beneficiary can create a D-407 obligation even without NC-source income.

The federal return comes first

Form D-407 does not replace the federal filing — an estate or trust that meets the federal thresholds ($600 of gross income, any taxable income for a trust, or a nonresident alien beneficiary) files the federal Form 1041 with the IRS and then the North Carolina return with NCDOR, which generally starts from the federal figures. The practical workflow: finish the federal 1041 and its Schedule K-1s, then carry the numbers into Form D-407. Our federal Form 1041 guide covers the thresholds, deadlines, and elections, and the Schedule K-1 guide explains what beneficiaries do with their share.

Start with the federal Form 1041

Prepare and e-file the federal fiduciary return through the IRS MeF system with an electronic acknowledgment — the foundation the North Carolina return builds on.

E-File the Federal 1041

North Carolina fiduciary tax FAQs

Who must file North Carolina Form D-407?
A fiduciary required to file a federal 1041 files the D-407 when the estate or trust has North Carolina-source income, or income for the benefit of a North Carolina resident.
When is Form D-407 due?
April 15 for calendar-year filers; the 15th day of the 4th month after a fiscal year ends. Extension: A federal extension carries over automatically — fill in the federal-extension bubble on the D-407. Without one, file Form D-410P by the original due date. Payment is still due in April.
What is the North Carolina fiduciary tax rate?
A flat 4.25% for 2025, scheduled by statute to fall to 3.99% for 2026. Rates and thresholds change — verify against the current Form D-407 instructions from North Carolina Department of Revenue before computing.
Do I still file the federal Form 1041 if I file Form D-407?
Yes — they are separate obligations. The federal Form 1041 goes to the IRS under the federal $600 gross-income (or any-taxable-income) thresholds, and Form D-407 goes to NCDOR under North Carolina's own rules. Most fiduciaries prepare the federal return first, since the state return typically starts from federal amounts.
How do I claim the automatic North Carolina extension for a D-407?
If the estate or trust received the federal Form 7004 extension, simply fill in the "federal extension" Yes bubble on page 1 of the D-407 — no separate NC form is needed. Without a federal extension, file Form D-410P by the original due date. Neither extends the time to pay.

Other state fiduciary guides

Michigan Form MI-1041 · Virginia Form 770 · Massachusetts Form 2 · Maryland Form 504 · California Form 541 · New York Form IT-205 · all states

Disclaimer: State filing thresholds, rates, and extension rules change — verify current requirements in the Form D-407 instructions published by North Carolina Department of Revenue before filing. This page is general information, not tax advice. TaxFilingCenter is an IRS-authorized e-file provider for federal returns and does not provide legal or tax advice.