North Carolina's statewide sales tax rate is 4.75%, but your total tax depends on your county

North Carolina charges a base sales tax of 4.75% on most purchases. However, most counties add a local sales tax on top of that, which means what you actually pay varies by where you shop. The combined rate in your county could be anywhere from 4.75% to 7.5%, depending on how many local taxes your county has imposed.

The state tax goes to Raleigh. The local portion goes to your county and sometimes to specific cities or districts within it. When you see a price tag, the sales tax shown at checkout reflects both the state and local rates for that location.

Key Takeaways

  • North Carolina's state sales tax is 4.75%, but most counties add local sales tax on top, raising your total to between 4.75% and 7.5%.
  • Some products are taxed at a lower rate or not taxed at all, including groceries, prescription medications, and medical equipment.
  • The rate you pay depends on where the sale happens, not where you live, so buying in a different county changes your tax.
  • You can find your county's exact combined rate on the North Carolina Department of Revenue website or by asking a retailer.

Local sales tax rates by county

North Carolina has 100 counties, and each one sets its own local sales tax rate. Some counties have no local tax at all and charge only the 4.75% state rate. Others have added 1%, 1.5%, 2%, or even 2.75% on top of the state tax, bringing the combined rate to 7.5% in the highest-tax counties.

The most common combined rates are 6.75% and 7%. Counties like Mecklenburg (Charlotte), Wake (Raleigh), and Guilford (Greensboro) typically fall in that range. Rural counties often have lower combined rates. The only way to know your exact rate is to check your county specifically, because the local portion is not uniform across the state.

The North Carolina Department of Revenue publishes a complete list of county rates on its website. You can also call your county tax assessor's office or ask a cashier at any store in your county what the combined rate is.

What is and is not taxed in North Carolina

Not everything you buy is subject to sales tax in North Carolina. Groceries — food you cook at home — are not taxed. This includes meat, produce, dairy, bread, and canned goods. Restaurant meals and prepared foods are taxed at the full rate.

Prescription medications are not taxed. Over-the-counter medicines and vitamins are taxed. Medical equipment prescribed by a doctor, such as wheelchairs, oxygen equipment, and diabetic supplies, is not taxed. Clothing and shoes are taxed at the full rate.

Services are generally not taxed, but goods are. If you buy a haircut, you pay no sales tax. If you buy hair dye to use at home, you do. If you hire someone to repair your car, labor is not taxed, but parts are. Digital products like e-books, streaming subscriptions, and downloaded software are taxed.

How sales tax is calculated at checkout

The sales tax you see on your receipt is calculated on the subtotal of taxable items only. If you buy groceries and a magazine, tax applies only to the magazine. The cashier's register is programmed to know which items are taxable and which are not, so the math happens automatically.

The tax is rounded to the nearest cent. If your tax comes to $5.634, you pay $5.63. If it comes to $5.635, you pay $5.64. This rounding happens at the register, not on your receipt.

Sales tax on online and out-of-state purchases

If you order something online from a retailer that has a physical location in North Carolina, or that is based in North Carolina, sales tax is added to your order. The rate depends on the delivery address — if it is being shipped to a North Carolina address, the tax rate for that county applies.

If you order from a retailer with no North Carolina presence, North Carolina does not collect sales tax on that purchase. However, you may owe use tax on it, which is a tax on goods you bring into the state or have shipped to you. In practice, use tax is rarely enforced for individual purchases, but it is technically owed.

Sales tax on vehicles and special items

When you buy a car in North Carolina, sales tax is calculated on the purchase price. The rate is the combined state and local rate for the county where the sale happens. If you trade in a vehicle, the tax is applied to the net price after the trade-in credit is subtracted.

Boats, motorcycles, and recreational vehicles are also taxed at the full combined rate. Fuel for vehicles is taxed, but the tax is included in the pump price — you do not see it listed separately. Cigarettes and alcohol have additional excise taxes on top of sales tax.

Frequently Asked Questions

What is the sales tax rate in my county?

The North Carolina Department of Revenue publishes a complete list of all 100 county rates on its website. You can search by county name. You can also call your county tax assessor's office or ask any retailer in your area.

Do I pay sales tax on groceries?

No. Food you buy to cook at home — meat, produce, bread, dairy, canned goods — is not taxed. Restaurant meals, prepared foods, and food eaten on premises are taxed at the full rate.

Is sales tax the same everywhere in North Carolina?

No. The state tax is always 4.75%, but local tax varies by county from 0% to 2.75%. Your total rate depends on where the sale happens. If you buy something in one county and have it shipped to another, the rate for the delivery address applies.

Do I owe tax on things I buy online from out-of-state sellers?

If the seller has no North Carolina presence, North Carolina does not collect sales tax. However, you technically owe use tax on those purchases. Use tax is rarely enforced for individual shoppers, but it is a legal obligation.

Is sales tax added to the price shown on the tag?

Yes. The price on the tag does not include sales tax. The tax is added at checkout based on your county's combined rate. The final amount you pay is the tag price plus sales tax.