North Carolina's statewide sales tax rate
North Carolina charges a 4.75% sales tax on most retail purchases. This is the base rate set by the state and applies everywhere in North Carolina unless a local jurisdiction has added a local tax on top of it.
The 4.75% rate has been in place since 2013. It applies to tangible goods — things you can touch and take home — as well as certain services. Food, medicine, and a few other categories are taxed at different rates or not taxed at all, which is covered in the sections below.
Key Takeaways
- North Carolina's base sales tax is 4.75%, but many counties and cities add local taxes that raise the total to between 6.75% and 7.5%.
- Groceries and unprepared food are taxed at 2%, while prepared food and restaurant meals are taxed at the full rate.
- Prescription medications are not taxed, but over-the-counter drugs and vitamins are taxed at the full rate.
- The tax you pay at checkout depends on where you are shopping, not where you live, so the same item costs different amounts in different counties.
Local sales taxes that add to the state rate
Most North Carolina counties and cities layer their own sales tax on top of the 4.75% state rate. These local taxes range from 2% to 2.75%, which means your total sales tax bill can be anywhere from 6.75% to 7.5% depending on your location.
Some counties have uniform local rates across all their cities. Others allow individual cities to set their own rates, so two towns 10 miles apart may have different totals. For example, a county might charge 2% local tax, but a city within that county might add another 0.5% on top of that, bringing the local total to 2.5%.
The best way to find out your exact local rate is to check with your city or county tax office, or look at your last receipt — the sales tax shown there reflects your location's combined rate.
Groceries and food taxed at a lower rate
North Carolina taxes unprepared groceries — raw ingredients you cook at home — at 2% instead of the full rate. This includes meat, produce, dairy, bread, cereal, and canned goods. The 2% rate applies only to the state tax; local taxes still add on top, so your total on groceries is usually between 4.75% and 6.5% depending on where you live.
Prepared food and restaurant meals are taxed at the full combined rate (state plus local). This includes hot food from a deli counter, takeout, restaurant dining, and food from a food truck. Pre-made sandwiches, rotisserie chicken, and items kept warm under heat lamps all count as prepared food.
The line between prepared and unprepared can be unclear. If you are unsure whether an item qualifies for the 2% rate, ask the cashier or check your receipt — it will show which rate was applied.
Prescription and over-the-counter medications
Prescription medications are not taxed in North Carolina. When you fill a prescription at a pharmacy, no sales tax is added to the cost. You will need a valid prescription from a doctor or other licensed provider.
Over-the-counter drugs and vitamins are taxed at the full combined rate. This includes pain relievers, cold medicine, allergy medication, antacids, and all vitamin and supplement products. The tax applies whether you buy them at a pharmacy, grocery store, or online retailer shipping to North Carolina.
Clothing and other common purchases
Clothing is taxed at the full combined rate in North Carolina. There is no special exemption for clothes, shoes, or accessories, so a $50 shirt costs an additional $3.38 to $3.75 in sales tax depending on your location.
Most other everyday items are also taxed at the full rate: furniture, electronics, books, toys, household goods, and personal care items. Services like haircuts, dry cleaning, and car repairs are generally not subject to sales tax, though some specific services may be taxed depending on how they are classified.
Online purchases and out-of-state orders
Online retailers shipping to North Carolina must charge North Carolina sales tax on their orders, regardless of where the retailer is located. This has been the rule since 2018. The tax rate applied is based on the delivery address — if you live in a county with a 2% local tax, the online order is taxed at 6.75% total.
Some online retailers may not yet be charging the correct rate, or may charge only the state rate without the local portion. If you notice a discrepancy, you are not responsible for paying the difference — the retailer is responsible for collecting and remitting the correct amount.
Frequently Asked Questions
Does North Carolina tax services like haircuts or repairs?
Most services are not taxed in North Carolina. Haircuts, dry cleaning, car repairs, and plumbing work are generally exempt. However, some services bundled with products — like installation of flooring or appliances — may be taxed. When in doubt, ask the business before you pay.
What if I buy something in one county and use it in another?
The tax you pay is based on where you make the purchase, not where you use the item. If you buy a shirt in a county with 7% total tax and take it to a county with 6.75% tax, you paid the higher rate. There is no refund or adjustment based on where you end up using it.
Are diapers and baby formula taxed?
Yes. Diapers, baby formula, and other baby products are taxed at the full combined rate. North Carolina does not have a special exemption for these items, though some states do.
Do I pay sales tax on used items or secondhand purchases?
Sales tax applies to used goods sold by retailers, including used cars, used furniture, and items from secondhand stores. Private sales between individuals are generally not taxed, but if you buy from a business — even a consignment shop or used car dealer — tax applies.
What about tax on digital products like e-books or streaming services?
Digital products and subscriptions are generally not taxed in North Carolina. E-books, music downloads, and streaming service subscriptions do not have sales tax added. However, this is an area where tax law is still developing, so check your receipt if you are unsure.