North Carolina's statewide sales tax rate is 4.75 percent
North Carolina charges a flat 4.75 percent sales tax on most retail purchases. This is the base rate that applies statewide. However, many counties and cities add their own local sales taxes on top of the state rate, so the total you pay at checkout depends on where you are shopping.
The state tax applies to tangible goods — items you can touch and take home. It does not apply to services, groceries, prescription medications, or most medical equipment. Some counties have opted out of collecting local sales tax entirely, while others add 2 to 2.75 percent on top of the state rate.
Key Takeaways
- North Carolina's base sales tax is 4.75 percent statewide, but your total tax rate depends on your county and sometimes your city.
- Local sales taxes range from 0 to 2.75 percent added to the state rate, making total rates vary from 4.75 to 7.5 percent across the state.
- Groceries, prescription drugs, and most services are not subject to sales tax in North Carolina.
- Some counties have no local sales tax, while others have adopted it; you can find your exact rate by entering your address on the North Carolina Department of Revenue website.
How local taxes change your total rate
The 4.75 percent state rate is only the starting point. Your county may add a local sales tax that ranges from 0 to 2.75 percent. Some counties, like Currituck and Hyde, do not collect local sales tax at all, so shoppers there pay only 4.75 percent. Other counties, like Mecklenburg (Charlotte) and Wake (Raleigh), add 2.25 percent, bringing the total to 7 percent.
A few cities within counties also impose their own local tax. For example, a city might add an additional 0.5 to 1 percent on top of both state and county rates. This means your total sales tax can range anywhere from 4.75 percent in low-tax counties to 7.5 percent in areas with both county and city taxes.
The easiest way to find your exact rate is to enter your address on the North Carolina Department of Revenue sales tax lookup tool. You can also call your county tax assessor's office or check your county's website directly.
What is and is not taxed in North Carolina
Sales tax applies to most items you buy in stores: clothing, electronics, furniture, toys, and household goods. It also applies to prepared food, restaurant meals, and beverages. Gasoline and diesel fuel are taxed, though at a different rate set by the state.
Sales tax does not apply to groceries — unprepared food you take home to cook. This includes meat, produce, dairy, bread, and canned goods. Prescription medications are also exempt. Non-prescription drugs and over-the-counter medicines are taxed.
Services are generally not taxed in North Carolina. Haircuts, repairs, medical visits, and labor charges do not have sales tax. However, if you buy a tangible product as part of a service — such as parts installed during a car repair — the parts themselves may be taxed depending on how the transaction is structured.
Tax rates by major North Carolina counties
The table below shows the combined state and local sales tax rates for North Carolina's largest cities and counties. These rates are current as of 2024, but local tax rates can change. Always verify your specific location before making large purchases, especially if you are shopping near a county line.
| County | State Tax | Local Tax | Total Rate |
|---|---|---|---|
| Mecklenburg (Charlotte) | 4.75% | 2.25% | 7.00% |
| Wake (Raleigh) | 4.75% | 2.25% | 7.00% |
| Guilford (Greensboro) | 4.75% | 2.00% | 6.75% |
| Forsyth (Winston-Salem) | 4.75% | 2.00% | 6.75% |
| Durham | 4.75% | 2.00% | 6.75% |
| Buncombe (Asheville) | 4.75% | 2.00% | 6.75% |
| Currituck | 4.75% | 0.00% | 4.75% |
| Hyde | 4.75% | 0.00% | 4.75% |
Counties with no local sales tax offer the lowest rates in the state. Counties with 2.25 percent local tax have the highest combined rates, though a few cities add additional tax on top of that.
When you pay sales tax and when you do not
You pay sales tax at the point of sale — when you buy something at a store, restaurant, or online retailer. Online purchases from out-of-state sellers were not always taxed, but North Carolina now requires most online retailers to collect sales tax on orders shipped to North Carolina addresses, just as local stores do.
You do not pay sales tax when you buy groceries, prescription medications, or most services. You also do not pay sales tax on items you purchase for resale if you hold a valid resale certificate. Nonprofits and government agencies may be exempt from sales tax on certain purchases, but they must provide proof of exemption at the time of purchase.
Frequently Asked Questions
Do I pay sales tax on online orders shipped to North Carolina?
Yes. Most online retailers now collect North Carolina sales tax on orders shipped to addresses in the state. The rate depends on your county and city, just as it does for in-store purchases. Some very small sellers may not collect it, but you may owe use tax on those purchases when you file your state tax return.
Is clothing taxed in North Carolina?
Yes, clothing is subject to sales tax in North Carolina. There is no clothing exemption. You pay the full state and local sales tax rate on all apparel, shoes, and accessories.
What about sales tax on restaurant meals versus groceries?
Restaurant meals and prepared food are taxed. Groceries — unprepared food you buy to cook at home — are not taxed. The difference is whether the food is ready to eat. A rotisserie chicken from a grocery store deli is taxed; a raw chicken from the meat counter is not.
Can I find out the exact sales tax rate for my address?
Yes. The North Carolina Department of Revenue website has a sales tax lookup tool where you can enter your street address and see your exact combined state and local rate. You can also contact your county tax assessor's office or check your county government website.
Do military personnel stationed in North Carolina pay sales tax?
Yes, unless you have a specific military exemption certificate. Active-duty military members do not automatically receive a sales tax exemption in North Carolina. However, some military installations may have their own tax policies; check with your base finance office for details.