North Carolina's statewide sales tax rate is 4.75 percent

North Carolina charges a flat 4.75 percent sales tax on most goods and services. This is the rate you pay statewide, no matter which county you're in. Some counties add a local sales tax on top of the state rate, which means your total tax can be higher depending on where you make the purchase.

The state rate has been 4.75 percent since 2011. It applies to tangible items you buy in stores, online purchases shipped to North Carolina, and many services. Food you eat at a restaurant is taxed, but groceries you buy at a supermarket to cook at home are not.

Key Takeaways

  • North Carolina's state sales tax is 4.75 percent on most purchases, and some counties add 0.5 to 2.75 percent more on top of that.
  • Groceries, prescription medications, and medical equipment are exempt from sales tax in North Carolina.
  • Restaurant meals and prepared foods are taxed at the full rate, even if you take them home.
  • Your total tax rate depends on which county you're in, so the same item costs different amounts in different parts of the state.

Local sales taxes vary by county

On top of the 4.75 percent state rate, many North Carolina counties charge an additional local sales tax. This local tax ranges from 0.5 percent to 2.75 percent depending on the county. Your total sales tax is the state rate plus whatever local rate applies where you make the purchase.

For example, if you buy something in Mecklenburg County (Charlotte), you pay 4.75 percent state tax plus 2.25 percent local tax, for a total of 7 percent. In Wake County (Raleigh), the local rate is 2.75 percent, making your total 7.5 percent. Some counties have no local sales tax at all, so you pay only the 4.75 percent state rate.

The local tax is set by each county and can change, though changes are uncommon. If you live near a county line or shop in different counties, the tax you pay will differ. You can find your county's local rate by searching online for "[your county name] North Carolina sales tax" or by asking a cashier.

What is and isn't taxed in North Carolina

Exempt from sales tax (you do not pay tax on these):

  • Groceries and food you buy at a supermarket to cook at home
  • Prescription medications
  • Medical equipment and devices prescribed by a doctor
  • Certain agricultural equipment and seeds

Taxed at the full rate (you pay sales tax on these):

  • Restaurant meals and takeout food
  • Prepared foods from a deli or bakery
  • Clothing and shoes
  • Electronics and appliances
  • Gasoline and fuel
  • Hotel rooms
  • Most services, including haircuts and repairs

The line between "groceries" and "prepared food" matters. A rotisserie chicken you buy raw at the supermarket is not taxed. The same chicken already cooked and packaged at the deli counter is taxed. A loaf of bread is not taxed, but a sandwich made to order is taxed.

How sales tax is calculated at checkout

Sales tax is calculated on the subtotal before any discounts or coupons are applied in most cases. If an item costs $20 and you have a $5 coupon, the tax is usually calculated on $15, not $20. However, some retailers calculate tax before the coupon, so the amount you see can vary slightly by store.

The tax is added to your subtotal at the register. If you buy a $50 item in a county with a 7 percent total tax rate, you pay $50 plus $3.50 in tax, for a total of $53.50. Online retailers must collect and send North Carolina sales tax if they have a physical presence in the state or meet certain sales thresholds, so you typically pay tax on online purchases too.

Online purchases and sales tax

You pay North Carolina sales tax on most online purchases shipped to a North Carolina address. Large online retailers like Amazon collect the tax automatically at checkout. Smaller retailers may or may not collect it, depending on their business structure and sales volume in the state.

If you buy something online and the retailer did not collect North Carolina sales tax, you are technically responsible for paying it yourself as "use tax" when you file your state tax return. In practice, most people do not report this, and the state does not pursue individual consumers for small amounts. However, the tax is legally owed.

Sales tax on specific items you might wonder about

Clothing: Taxed at the full rate. There is no clothing exemption in North Carolina, so shoes, shirts, and pants all have sales tax.

Diapers and feminine hygiene products: Taxed at the full rate. North Carolina does not exempt these items.

Alcohol: Beer and wine have sales tax. Liquor has sales tax plus an additional excise tax on top.

Cigarettes and vaping products: Taxed, plus subject to additional state excise taxes.

Haircuts and salon services: Taxed at the full rate.

Vehicle repairs: Taxed at the full rate. Parts and labor both have sales tax.

Frequently Asked Questions

What's the total sales tax rate where I live?

Add your county's local rate to North Carolina's 4.75 percent state rate. Search online for "[your county] North Carolina sales tax rate" or call your county tax office. For example, Guilford County (Greensboro) has a 2 percent local rate, making the total 6.75 percent.

Do I pay sales tax on groceries?

No. Unprepared food you buy at a supermarket to cook at home is not taxed. This includes meat, produce, bread, and canned goods. Prepared foods like rotisserie chicken, deli sandwiches, and bakery items are taxed.

Is sales tax included in the price shown on the shelf?

No. The shelf price is before tax. Sales tax is added at the register. The total you pay will be higher than the price tag.

Do I have to pay sales tax on used items?

Yes, generally. Used items sold by a retailer or at a business are taxed. Items sold between individuals privately may not be taxed, depending on the situation. Check with the seller if you're unsure.

Can I get a sales tax refund if I'm visiting from out of state?

North Carolina does not have a tourist sales tax refund program. You pay the full sales tax on all purchases, regardless of where you live.