Many North Carolina taxpayers are still waiting for their state refunds in September 2025. The North Carolina Department of Revenue (NCDOR), which manages state taxes and refunds, began processing payments for the 2024 fiscal year on March 10, 2025. However, the waiting time depends largely on how the return was filed.
Electronic returns usually take about three to six weeks to process, while paper returns may take up to twelve weeks because of the manual steps involved. But filing method is only one reason why refunds get delayed.
Why Is Your NC Tax Refund Taking Longer?
Every tax return goes through different stages: Received, Under Review, and Approved. Some cases also require extra identity or fraud checks, which naturally add more time before a refund is released.
The refund amount itself depends on several factors, such as:
Income reported
Eligible deductions
Claimed tax credits
Any outstanding debts to state, local, or federal agencies
If a taxpayer owes at least $50, the NCDOR can reduce or even withhold the refund under a system called set-off.
Refund Withholding for Joint Filers
If you filed jointly and your spouse is not responsible for the debt, NCDOR may release your portion after review. In such cases, taxpayers receive official notices from both the Department of Revenue and the creditor agency.
Also, those who claimed itemized deductions and received a state refund last year will get a Form 1099-G. This form lists the refund amount, which may need to be reported as income in the next year’s federal return.
How to Track Your North Carolina Tax Refund
The fastest way to check refund status is through the “Where’s My Refund?” tool on the official website: www.ncdor.gov. To use it, you’ll need:
Your Social Security number (or Federal ID number)
The exact refund amount listed on line 34 of Form D-400
This online system provides real-time updates on your return’s progress.
External Delays in 2025: Printing Vendor Shutdown
An unexpected event has also slowed refund deliveries. NCDOR’s check-printing vendor, Professional Mail Services Inc., shut down suddenly in 2025. This stopped the production and mailing of all paper refund checks and official letters.
So, taxpayers who filed paper returns or asked for a paper check are facing longer delays. NCDOR is still searching for a new contractor, but no timeline has been given yet. The department recommends using direct deposit for quicker payments in the future.
Hurricane Helene and Tax Relief Extensions
Another factor affecting refunds this year is Hurricane Helene. As part of disaster relief, taxpayers in certain affected areas have until September 25, 2025, to file returns and make payments without penalties. Naturally, refunds linked to these late filings will also be processed later than usual.
North Carolina’s refund delays in 2025 are the result of multiple factors — from filing methods and security reviews to vendor shutdowns and disaster relief extensions.
While the NCDOR “Where’s My Refund?” tool remains the best way to track payments, choosing direct deposit for future returns is the most reliable option to avoid long waits. With both internal processes and external events causing slowdowns, taxpayers may need extra patience before receiving their refunds this year.
