North Carolina does not levy an estate tax. However, your estate may still be subject to the federal estate tax if the value is high enough.An individual who moves their domicile (legal residence) into or out of North Carolina during the tax year is a part-year resident. On July 23, 2013, the Governor signed HB 998 which repealed the North Carolina estate tax retroactively to January 1, 2013. What is the estate tax? How do I file the estate tax return? Generally, the estate tax return is due nine months after the date of death. A six month extension is available if requested prior to the due date. The statutory function of our office is to list, assess, and collect taxes on all real estate and personal property situated in Washington County. The North Carolina estate tax is equal to the amount of credit allowed for State death taxes paid on the federal estate tax return (Form 706).