North Carolina's statewide sales tax rate is 4.75 percent
North Carolina charges a 4.75 percent sales tax on most goods and services. This is the base rate set by the state. However, your total sales tax can be higher because counties add their own local tax on top of the state rate. The combined rate you actually pay depends on which county you are in.
The state rate of 4.75 percent has been in place since 2015. It applies to tangible personal property — things you can touch and take home — and to certain services. Food, medicine, and a few other categories have different rules, which are covered in the sections below.
Key Takeaways
- North Carolina's state sales tax is 4.75 percent, but your county adds a local tax on top, so your total rate ranges from 6.75 to 7.75 percent depending on where you live.
- Groceries and prescription medicines are taxed at 0 percent, but prepared food, candy, and over-the-counter drugs are taxed at the full rate.
- Services like haircuts, repairs, and professional fees are generally not taxed unless they are bundled with a taxable product.
- Online purchases from out-of-state sellers are subject to North Carolina sales tax if the seller has a physical presence in the state or meets federal economic nexus thresholds.
County tax rates add 2 to 3 percent to the state rate
Every North Carolina county collects a local sales tax in addition to the state tax. County rates range from 2 percent to 3 percent. The combined rate — state plus county — is what you see on your receipt.
The lowest combined rate is 6.75 percent, found in counties that charge 2 percent local tax. The highest combined rate is 7.75 percent, found in counties that charge 3 percent local tax. Some counties fall in between at 7.25 percent. Your county's rate does not change based on what you buy or where in the county you shop — it is the same everywhere within that county's borders.
To find your county's exact rate, search online for "[your county name] North Carolina sales tax rate" or ask a cashier. The North Carolina Department of Revenue maintains a complete list by county on its website.
Groceries and prescription medicines are not taxed
North Carolina does not charge sales tax on unprepared food you buy at a grocery store. This includes raw meat, produce, bread, milk, eggs, and canned goods. The rule is simple: if you can cook it at home and eat it as a meal, it is not taxed.
Prescription medicines are also tax-free. You must present a valid prescription from a licensed healthcare provider. Over-the-counter medicines — pain relievers, cold medicine, allergy tablets, antacids — are taxed at the full rate because they do not require a prescription.
Prepared food is taxed. This includes restaurant meals, deli items, hot food from a grocery store, candy, soda, and coffee. The distinction is whether the food is ready to eat or requires preparation at home.
Services are usually not taxed unless bundled with goods
Most services in North Carolina are not subject to sales tax. Haircuts, dental work, car repairs, plumbing, house cleaning, and professional consulting are examples of services that are not taxed on their own.
However, if a service is bundled with a taxable product, the entire charge may be taxed. For example, if a salon charges one price for a haircut and color treatment together, and the color treatment involves a product, the whole service may be taxed. The rule depends on whether the service or the product is the main thing you are paying for. When in doubt, ask the business whether tax will be added.
Online purchases follow the same tax rules as in-store purchases
If you buy something online from a seller that has a physical location in North Carolina or meets federal economic nexus rules, you owe North Carolina sales tax on that purchase. The seller is responsible for collecting and remitting the tax, so it should appear on your receipt or invoice.
Out-of-state sellers without a North Carolina presence are not required to collect North Carolina sales tax. However, you may owe use tax — a tax on goods you bring into the state — if you purchase from an out-of-state seller. Use tax is owed to North Carolina but is rarely enforced for individual purchases. Most people do not report it.
The same food and medicine exemptions apply to online purchases. Groceries and prescription medicines ordered online are not taxed if the seller is subject to North Carolina tax law.
Special items with different tax treatment
A few categories have their own rules. Clothing and shoes are not taxed in North Carolina, with the exception of certain athletic or protective gear. Diapers and feminine hygiene products are not taxed. Newspapers and magazines are not taxed.
Alcohol is taxed at the sales tax rate, but beer, wine, and liquor are also subject to separate excise taxes that are set by the state and vary by type of alcohol. These excise taxes are in addition to sales tax and are built into the price you see at the register.
Gasoline and diesel fuel are not subject to sales tax, but they are subject to a state fuel tax and federal fuel tax that are included in the pump price.
Frequently Asked Questions
What is the sales tax rate where I live?
Search online for "[your county name] North Carolina sales tax" or call your county tax assessor's office. The combined rate is the state rate of 4.75 percent plus your county's local rate, which ranges from 2 to 3 percent. Your total will be between 6.75 and 7.75 percent.
Do I pay sales tax on groceries?
No. Unprepared food you buy at a grocery store — meat, produce, bread, milk, canned goods — is not taxed. Prepared food like restaurant meals, deli items, and hot food from a grocery store is taxed at the full rate.
Is sales tax added to online orders?
Yes, if the seller has a physical presence in North Carolina or meets federal economic nexus thresholds. The same tax rate and exemptions apply as in-store purchases. Groceries and prescription medicines are not taxed even when ordered online.
Are over-the-counter medicines taxed?
Yes. Only prescription medicines are tax-free. Pain relievers, cold medicine, allergy tablets, and other over-the-counter drugs are taxed at the full sales tax rate.
Do I pay sales tax on services like haircuts or repairs?
Usually no. Most services are not taxed on their own. However, if a service is bundled with a taxable product, the entire charge may be taxed. Ask the business before you pay if you are unsure.