North Carolina's statewide sales tax rate is 4.75 percent, but your total tax depends on your county
North Carolina charges a base sales tax of 4.75 percent on most purchases. However, most counties add a local tax on top of that, which means the rate you pay at checkout ranges from 6.75 percent to 7.5 percent depending on where you live. The county you're in matters more than the state rate itself.
Some counties also impose a local use tax on items you buy from out-of-state sellers and bring into North Carolina. This applies even if you ordered online and had it shipped to you. The rate is the same as the local sales tax in your county.
Key Takeaways
- North Carolina's state sales tax is 4.75 percent, but every county adds a local tax that ranges from 2 to 2.75 percent, making your total between 6.75 and 7.5 percent.
- Groceries, prescription medications, and medical equipment are exempt from sales tax in North Carolina.
- You can find your exact county rate on the North Carolina Department of Revenue website or by calling your county tax office.
- Local use tax applies to online purchases and out-of-state orders shipped to your North Carolina address.
County-by-county local tax rates
Every North Carolina county adds its own local sales tax on top of the 4.75 percent state rate. Most counties charge either 2 percent or 2.75 percent locally, which puts the total between 6.75 and 7.5 percent. A few counties fall in between.
The easiest way to find your exact rate is to visit the North Carolina Department of Revenue website and search by county name, or call your county's tax office directly. Tax rates can change, and some counties have adjusted their rates in recent years, so checking before a large purchase is worth the five minutes it takes.
If you live near a county border, remember that the rate you pay is determined by where the business is located, not where you live. A store in one county charges that county's rate even if you drive there from a neighboring county with a different rate.
What items are taxed and what are exempt
Most tangible goods — clothing, electronics, furniture, household items — are subject to sales tax at your local rate. Services are generally not taxed, though some specific services like repairs and alterations can be.
Food and groceries are exempt from sales tax in North Carolina. This means your grocery store purchases are not taxed, but prepared food and restaurant meals are. Prescription medications are also exempt, as are certain medical devices and equipment prescribed by a doctor.
Clothing and shoes under $100 per item are exempt from sales tax in North Carolina. If a single item costs $100 or more, the full price is taxed. This applies to the price before any discounts.
Sales tax on online and out-of-state purchases
When you order from an online retailer and have it shipped to a North Carolina address, you owe sales tax at your local rate — even if the seller is based in another state. Large online retailers like Amazon, Walmart, and Target collect and remit this tax automatically at checkout.
Smaller online sellers are not always required to collect North Carolina sales tax, depending on their sales volume and nexus in the state. If a seller does not collect tax at checkout, you may owe use tax on that purchase when you file your state income tax return. In practice, most individual consumers do not report these amounts, but the tax is legally owed.
If you order something from out of state and pick it up in person at a store location in North Carolina, you pay tax at that store's location rate.
How sales tax appears on your receipt
Your receipt shows the subtotal, then lists the state tax and local tax separately before showing the final total. The state portion is always 4.75 percent of the subtotal. The local portion varies by county.
Some receipts combine the state and local tax into a single line item showing only the total tax rate. Either way, the amount you pay is the same — it is just a formatting difference between retailers.
Sales tax on vehicles and large purchases
Motor vehicles are subject to sales tax in North Carolina, calculated on the purchase price. The rate is your local sales tax rate, not a special vehicle tax. If you buy a car for $20,000 in a county with a 7 percent total rate, you owe $1,400 in sales tax.
Trade-in value does not reduce the taxable amount. You pay tax on the full purchase price, even if you trade in an old vehicle. Some states tax only the difference, but North Carolina does not.
If you buy a vehicle out of state and register it in North Carolina, you owe North Carolina sales tax on the purchase price at the time of registration. Bring your bill of sale and out-of-state title to the DMV.
Frequently Asked Questions
What is the sales tax rate in my county?
Visit the North Carolina Department of Revenue website and search for your county by name, or call your county tax office. Rates range from 6.75 to 7.5 percent total. The state portion is always 4.75 percent; your county adds 2 to 2.75 percent on top of that.
Do I pay sales tax on groceries?
No. Unprepared food and groceries are exempt from sales tax in North Carolina. This includes items like bread, milk, vegetables, and meat from the grocery store. Prepared foods, restaurant meals, and food from a deli counter are taxed.
Is clothing taxed in North Carolina?
Clothing and shoes under $100 per item are exempt. If a single item costs $100 or more, the entire purchase is taxed. This threshold applies to the price before discounts.
Do I owe sales tax on items I buy online?
Yes. When an online order ships to a North Carolina address, you owe sales tax at your local rate. Large retailers collect this at checkout. Smaller sellers may not, in which case you technically owe use tax on your state income tax return, though most individuals do not report it.
How is sales tax calculated on a car purchase?
Sales tax on a vehicle is your local sales tax rate applied to the full purchase price. Trade-in value does not reduce the taxable amount. If you buy a car out of state, you owe North Carolina sales tax when you register it.