North Carolina's base sales tax rate and local add-ons
North Carolina has a state sales tax of 4.75%, but the total rate you pay depends on which county you're in. Most counties add a local tax on top of the state rate, ranging from 2% to 2.75%. This means your total sales tax can be anywhere from 6.75% to 7.5%, depending on location.
The state rate of 4.75% applies uniformly across North Carolina. However, 95 of the state's 100 counties have added their own local sales tax. Only five counties—Avery, Catawba, Madison, Watauga, and Yancey—charge only the state rate with no local add-on. If you live in or are buying from one of these counties, you pay 4.75%. Everywhere else, you'll pay more.
Local tax rates were set by individual counties and have remained largely stable for years. The county where the sale occurs is what determines your rate, not where you live. If you buy something in Mecklenburg County (Charlotte area, 2.75% local rate) but live in Wake County (Raleigh area, 2.5% local rate), you pay Mecklenburg's combined rate of 7.5%.
Key Takeaways
- North Carolina's state sales tax is 4.75%, but 95 counties add a local tax of 2% to 2.75% on top of it.
- Your total sales tax rate depends on the county where you make the purchase, not where you live.
- Only Avery, Catawba, Madison, Watauga, and Yancey counties charge the state rate alone without a local add-on.
- Groceries, prescription medications, and medical equipment are generally exempt from North Carolina sales tax.
- Online purchases from out-of-state sellers may not have North Carolina tax added at checkout, but you may owe use tax on your state return.
What's taxed and what's not in North Carolina
Food and groceries are exempt from sales tax in North Carolina. This includes bread, milk, produce, meat, and other items you buy at a grocery store for home consumption. However, prepared food—restaurant meals, hot deli items, and food from a food truck—is taxed at the full rate.
Prescription medications and certain medical devices are also exempt. Over-the-counter medications like cold medicine or pain relievers are taxed, but prescription drugs are not. Medical equipment prescribed by a doctor, such as wheelchairs or diabetic supplies, is generally exempt as well.
Clothing and shoes have no special exemption in North Carolina and are taxed normally. Services like haircuts, repairs, and professional labor are generally not subject to sales tax, though some specific services may be taxed depending on how they're classified.
Local tax rates by county
North Carolina's 95 counties with local sales tax fall into three tiers. The largest group—most counties—charge a 2.5% local rate, bringing their total to 7.25%. A smaller group of counties charges 2.75% locally, for a total of 7.5%. A few counties charge 2% locally, for a total of 6.75%.
Major urban areas and their rates include: Wake County (Raleigh) at 7.25%, Mecklenburg County (Charlotte) at 7.5%, Guilford County (Greensboro) at 7.25%, and Durham County at 7.25%. These rates have been in place for many years and change infrequently. If you need the exact rate for a specific county, the North Carolina Department of Revenue maintains a current list on its website.
How sales tax applies to online and out-of-state purchases
Online retailers are now required to collect North Carolina sales tax on most purchases, regardless of where the seller is located. This means when you buy from Amazon, Walmart.com, or other major retailers, North Carolina tax should be added at checkout based on your delivery address.
However, some smaller online sellers—particularly those with low sales volumes—may not yet be collecting North Carolina tax. If you buy something online and no tax was added, you may owe use tax on your state income tax return. Use tax is North Carolina's way of collecting tax on purchases where sales tax wasn't paid. The rate is the same as the sales tax rate for your county.
You're not required to track every online purchase and report it separately. Instead, North Carolina allows you to report a lump sum of out-of-state purchases on your return, or you can itemize them. Many people estimate based on their spending and add it to their return. Keep receipts for large purchases in case of audit.
Sales tax on vehicles and large purchases
Vehicle sales are taxed in North Carolina, and the rate applies to the purchase price of the car. When you buy a car from a dealer, sales tax is calculated and added to your bill. If you buy a used car from a private seller, you still owe sales tax when you register it with the North Carolina Division of Motor Vehicles—the tax is collected at registration, not at the time of sale.
For private vehicle sales, the tax is based on the sale price you report to the DMV. This is one reason to keep a bill of sale: it documents the price for tax purposes. If you trade in a vehicle, the sales tax applies only to the net amount you're paying (the purchase price minus the trade-in value), not the full price of the new vehicle.
Large purchases like furniture, appliances, and electronics are taxed at the standard sales tax rate for your county. There's no special threshold or exemption for high-value items. If you're buying something out of state and bringing it into North Carolina, you may owe use tax on it.
When you might owe use tax instead of sales tax
Use tax is North Carolina's backup tax on purchases where sales tax wasn't collected. It applies most often to out-of-state purchases, items bought online from sellers not collecting tax, and goods you bring into the state from elsewhere. The rate is identical to your county's sales tax rate.
Common situations where use tax applies include buying furniture from an out-of-state store and having it shipped to North Carolina, purchasing equipment from a seller in another state, or ordering from a small online retailer that doesn't collect North Carolina tax. You report the use tax on your state income tax return, not at the time of purchase.
In practice, most people don't separately track small use tax purchases. The state allows you to estimate based on your total out-of-state spending for the year. For large purchases—a car, major appliance, or furniture—it's worth keeping the receipt and calculating the exact tax owed, since those amounts are significant enough to matter on an audit.
How to find the exact rate for your county
The North Carolina Department of Revenue publishes a current list of all county sales tax rates on its website. You can search by county name or look at the full table. The rates shown there are the combined state and local rates, so you don't have to do any math—the number you see is what you pay.
If you're buying in a county different from where you live, use the rate for the county where the purchase happens. For online purchases, use the rate for the county where the item will be delivered. If you're unsure which county a city is in, a quick search will clarify—for example, Charlotte is in Mecklenburg County, Raleigh is in Wake County, and Greensboro is in Guilford County.
Frequently Asked Questions
Do I pay North Carolina sales tax on groceries?
No. Unprepared food bought at a grocery store—bread, milk, produce, meat, eggs—is exempt from sales tax. However, prepared foods like restaurant meals, hot deli items, and food from a food truck are taxed at the full rate for your county.
What's the sales tax rate in Charlotte?
Mecklenburg County, where Charlotte is located, has a combined state and local sales tax rate of 7.5%. This rate applies to all taxable purchases made in Mecklenburg County, regardless of where you live.
Do I owe sales tax on online purchases from out-of-state sellers?
Most major online retailers now collect North Carolina sales tax at checkout. However, some smaller sellers may not. If tax wasn't collected, you may owe use tax on your state return. You can estimate based on your total out-of-state spending or itemize large purchases.
Is sales tax added to the price of a used car I buy from a private seller?
Sales tax isn't collected at the time of sale, but you owe it when you register the vehicle with the North Carolina Division of Motor Vehicles. The tax is based on the sale price you report. If you trade in a vehicle, tax applies only to the net amount you're paying, not the full purchase price.
Which North Carolina counties don't have a local sales tax?
Five counties charge only the state rate of 4.75% with no local add-on: Avery, Catawba, Madison, Watauga, and Yancey. All other counties add a local tax of 2% to 2.75% on top of the state rate.