Abstract This work presents a vibrational and electronic (vibronic) state-to-state (StS) model for nitrogen plasmas implemented within a multi-physics modular computational framework to study non-equilibrium effects in inductively coupled plasma (ICP) discharges. The vibronic master equations are solved in a tightly coupled fashion with the flow governing equations eliminating the need for invoking any simplifying assumptions when computing the state of the plasma, leading to a high-fidelity physical modeling. The model’s computational complexity is reduced via a maximum entropy coarse-graining approach, verified through zero-dimensional isochoric calculations. The coarse-grained StS model is employed to study the plasma discharge in the ICP facility at the von Karman Institute for Fluid Dynamics, Belgium. Results reveal pronounced discrepancies between StS predictions and those obtained based on local thermodynamic equilibrium (LTE) models, which are conventionally used in the simulation of such facilities. The analysis demonstrates a substantial departure of the internal state populations of atoms and molecules from the Boltzmann distribution. This has significant implications for energy coupling dynamics, affecting the discharge morphology. Further analysis reveals a quasi-steady-state population distribution in the plasma core, allowing for the construction of an efficient and ‘self-consistent’ macroscopic two-temperature (2T) formulation. Non-LTE simulations indicate significant disparities between the StS model and the commonly used Park 2T model, whereas the newly proposed 2T model aligns closely with StS simulations, capturing key features of non-equilibrium plasma formation. In particular, the current study highlights the importance of the vibrational-translational energy transfer term in shaping the plasma core morphology, suggesting a notable sensitivity to heavy-impact vibrational excitations and dissociative processes.