North Carolina charges a statewide sales tax of 4.75 percent on most goods and some services

North Carolina's base sales tax rate is 4.75 percent. This is the tax you pay on most items you buy in stores, online, or by mail order. On top of the state rate, most counties add their own local sales tax — usually between 2 and 2.75 percent — which means your total sales tax at checkout typically ranges from 6.75 to 7.5 percent depending on where you live.

The tax applies to tangible goods (things you can touch and take home) and to certain services. It does not apply to groceries, prescription medications, or medical equipment. Some services like haircuts, repairs, and entertainment are taxable; others like professional services and labor are not. The rules vary enough that what is taxed in one situation might not be in another.

Key Takeaways

  • North Carolina's state sales tax is 4.75 percent, and your county adds 2 to 2.75 percent on top, bringing your total to between 6.75 and 7.5 percent.
  • Groceries and prescription medications are not subject to sales tax in North Carolina, but prepared food and over-the-counter drugs are.
  • The tax applies to most goods and to services like haircuts, repairs, and entertainment, but not to labor or professional services.
  • Online purchases from out-of-state sellers are subject to North Carolina sales tax if the seller has a physical presence or meets certain sales thresholds in the state.

What the state rate covers and what it does not

The 4.75 percent state rate applies to retail sales of tangible goods — clothing, electronics, furniture, tools, and similar items. It also applies to certain services: haircuts and salon services, repairs (appliances, vehicles, electronics), dry cleaning, and entertainment like movie tickets and amusement park admission.

Groceries are exempt from sales tax in North Carolina. This means unprepared food you buy at a grocery store — produce, meat, dairy, bread, canned goods — is not taxed. Prepared food is taxed: a sandwich from a deli counter, a hot rotisserie chicken, or food from a restaurant all include sales tax. Prescription medications are also exempt, but over-the-counter drugs and vitamins are taxed.

Labor and professional services are generally not taxed. If you pay a plumber, electrician, accountant, or lawyer, the service itself is not subject to sales tax. However, if they sell you a tangible product as part of that service (like a new water heater or a software license), the product portion may be taxed.

County and local add-on rates

Every North Carolina county adds its own local sales tax on top of the state rate. These local rates range from 2 percent to 2.75 percent. The total tax you pay depends on which county you are in when you make the purchase.

For example, if you buy something in Wake County (Raleigh), you pay 4.75 percent state plus 2.75 percent local, for a total of 7.5 percent. In Mecklenburg County (Charlotte), the local rate is 2.25 percent, so your total is 7 percent. In some rural counties, the local rate is only 2 percent, bringing your total to 6.75 percent. The county rate applies whether you shop in a store or online, as long as the purchase is shipped to an address in that county.

How online purchases are taxed

Online purchases from out-of-state sellers are subject to North Carolina sales tax if the seller meets certain conditions. If the seller has a warehouse, office, or other physical location in North Carolina, they must collect sales tax. If they do not have a physical presence in the state but their total sales to North Carolina customers exceed a certain threshold (currently $100,000 in a calendar year), they must also collect the tax.

When you buy from an out-of-state seller who does not collect North Carolina sales tax, you are technically responsible for paying "use tax" — which is the same rate as sales tax — when you file your state income tax return. In practice, most individuals do not report this, but the obligation exists. Sellers who meet the threshold are required to collect and remit the tax, so the burden falls on them, not you.

Tax-exempt purchases and who qualifies

Certain organizations and individuals can make purchases without paying sales tax. Nonprofits, schools, and government agencies can buy goods tax-free if they have a tax-exempt certificate from the North Carolina Department of Revenue. Resellers — businesses that buy goods to resell them — can also avoid sales tax on their purchases by providing a resale certificate.

Individual consumers cannot claim a general tax exemption. However, if you are buying groceries or prescription medications, those are automatically exempt at checkout. If you are a veteran or active-duty service member, some states offer sales tax exemptions on certain purchases, but North Carolina does not have a blanket military exemption. You may be able to claim a deduction on your state income tax return instead.

What happens if sales tax is charged incorrectly

If you are charged sales tax on an item that should be exempt — like a prescription medication or groceries — you can ask the cashier or store manager to correct it at the time of purchase. Keep your receipt. If the error is not caught until later, contact the store's customer service with your receipt and the item details. Most stores will issue a refund or credit.

If you believe a business is not collecting sales tax when it should be, or if you suspect tax fraud, you can report it to the North Carolina Department of Revenue. The department investigates complaints and can audit businesses. You do not need to provide your name when reporting, though doing so can help the department follow up if they have questions.

Frequently Asked Questions

Is sales tax the same everywhere in North Carolina?

No. The state rate is always 4.75 percent, but the county rate varies from 2 to 2.75 percent. Your total tax depends on which county you are in. A purchase in one county may cost more in tax than the same purchase in another county.

Do I have to pay sales tax on clothes?

Yes. North Carolina taxes clothing and shoes at the full sales tax rate. There is no clothing exemption. This includes new clothes, used clothes from a store, and accessories like belts and hats.

What about sales tax on services like haircuts or car repairs?

Most services are taxed. Haircuts, salon services, vehicle repairs, appliance repairs, and dry cleaning all include sales tax. However, labor charges for professional services like accounting or legal work are generally not taxed.

Can I return something and get the sales tax back?

Yes. When you return an item for a refund, the sales tax is refunded along with the purchase price. If you exchange the item for something else, the tax is adjusted based on the new price. Keep your receipt to process the return.

Do I owe sales tax on items I buy from a private person, not a store?

Generally, no. Sales tax applies to retail sales by businesses. If you buy a used item from a private individual — a car, furniture, or electronics — there is no sales tax. However, if you buy from a business, even a small one or an online seller, sales tax applies.