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 add a local tax on top of this amount, so your total tax at checkout depends on where you live or shop. The state does not allow cities to add their own sales tax — only counties can do so.

When you see a price tag in a North Carolina store, the 4.75 percent is not included in that price. It gets added at the register. If a county has added a local tax, that gets added too. So a $100 item in a county with no local tax costs $104.75. The same item in a county with a 2 percent local tax costs $106.75.

Key Takeaways

  • North Carolina's base sales tax is 4.75 percent, applied to most goods and some services.
  • Counties can add a local sales tax ranging from 0 to 2.75 percent, making your total tax rate between 4.75 and 7.5 percent depending on location.
  • Groceries, prescription medications, and medical equipment are exempt from sales tax in North Carolina.
  • The tax applies to tangible goods you can touch, but not to most services like haircuts, repairs, or professional fees.

Local county taxes add 0 to 2.75 percent on top of the state rate

Not all North Carolina counties charge the same local tax. Some counties have no local sales tax at all, while others add up to 2.75 percent. This means your total sales tax bill ranges from a low of 4.75 percent to a high of 7.5 percent depending on which county you are in.

The county tax applies to the same items as the state tax. If you buy something in a county with a 2 percent local tax, both the 4.75 percent state tax and the 2 percent local tax are calculated on your purchase. Counties use this revenue for schools, transportation, and other local services. A few counties have added local taxes in recent years, so rates can shift — check your county's tax rate before making a large purchase if you are near a county line.

What is and is not taxed in North Carolina

Sales tax in North Carolina applies to tangible personal property — things you can hold and take home. Clothing, electronics, furniture, toys, and most other goods are taxed. Food you eat at a restaurant is taxed. Prepared foods from a deli counter are taxed. But groceries you buy to cook at home are not taxed, including meat, produce, dairy, bread, and canned goods.

Services are usually not taxed. A haircut, car repair, plumbing work, or accounting advice does not trigger sales tax. However, some services that involve selling a product do get taxed — for example, if a contractor sells you materials and installs them, the materials portion is taxed but the labor is not.

Medical items have their own rules. Prescription medications are exempt from sales tax. Over-the-counter drugs like aspirin or cold medicine are taxed. Medical equipment prescribed by a doctor — such as wheelchairs, hearing aids, or oxygen equipment — is exempt. Vitamins and supplements are taxed because they are not considered medicine.

How to find your county's exact tax rate

Your county's total sales tax rate depends on which local taxes have been added. The easiest way to find your rate is to visit the North Carolina Department of Revenue website and use their sales tax rate lookup tool. You enter your county name or zip code, and it shows you the exact combined rate — state plus local.

You can also call your county tax assessor's office directly. They can tell you the local rate and explain what it funds. If you live near a county line and shop in different counties, knowing the rates can matter for large purchases. Some people cross county lines to buy cars or furniture in lower-tax counties, though you still owe tax in your home county if you bring the item back there.

Sales tax on online and out-of-state purchases

North Carolina requires you to pay sales tax on items ordered online, even if the seller is out of state. This applies to purchases from national retailers, marketplaces, and small businesses. Most large online retailers now collect North Carolina sales tax automatically at checkout, so you see the tax added before you pay.

If an online seller does not collect tax, you are technically required to report the purchase and pay the tax yourself when you file your state income tax return. In practice, most people do not do this, but the law requires it. The state has been working to make sure major online sellers collect tax, so this is becoming less of an issue.

Special cases: vehicles, fuel, and utilities

Cars and motorcycles are taxed, but the rate and rules differ from regular sales tax. When you buy a vehicle in North Carolina, you pay sales tax based on the purchase price. However, if you trade in an old vehicle, the tax is calculated on the net amount — the sale price minus the trade-in value. This can lower your tax bill significantly.

Gasoline and diesel fuel are not subject to the regular sales tax. Instead, they are taxed through a separate fuel excise tax that is built into the pump price. Electricity and natural gas used in your home are also not subject to sales tax. However, if a business uses fuel or utilities, different rules may apply.

Frequently Asked Questions

Do I pay sales tax on groceries in North Carolina?

No. Groceries you buy to cook at home — meat, produce, dairy, bread, canned goods, frozen vegetables — are not taxed. However, prepared foods from a restaurant, deli counter, or bakery are taxed. The difference is whether the food is ready to eat.

What is the sales tax rate in my county?

North Carolina's base rate is 4.75 percent, but your county may add a local tax between 0 and 2.75 percent. Use the North Carolina Department of Revenue sales tax lookup tool on their website, or call your county tax assessor's office to find your exact combined rate.

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

Yes. North Carolina requires sales tax on online purchases regardless of where the seller is located. Most major retailers collect this tax at checkout. If a seller does not collect it, you are required to report and pay the tax yourself, though enforcement is limited.

Are prescription medications taxed in North Carolina?

No. Prescription medications are exempt from sales tax. Over-the-counter drugs like aspirin or cold medicine are taxed. Medical equipment prescribed by a doctor, such as wheelchairs or hearing aids, is also exempt.

How is sales tax calculated when I trade in a vehicle?

Sales tax on a vehicle is calculated on the net price — the sale price minus your trade-in value. So if you buy a car for $20,000 and trade in a vehicle worth $5,000, you pay sales tax on $15,000, not the full $20,000.