North Carolina has a 4.75% state sales tax, plus local taxes that bring the total to between 6.75% and 7.5% depending on your county

The state sales tax in North Carolina is 4.75%. On top of that, each county adds its own local sales tax, ranging from 2% to 2.75%. This means the total you pay at checkout varies by location — a purchase in one county might cost slightly more or less in the next one over.

The combined rate is what matters when you're buying something. If you live in or are shopping in a county with a 2% local rate, you pay 6.75% total. If your county has the maximum 2.75% local rate, the total is 7.5%. You can find your specific county rate by looking up your county name on the North Carolina Department of Revenue website, or by checking your receipt from a recent purchase.

Key Takeaways

  • North Carolina's state sales tax is 4.75%, and counties add between 2% and 2.75% on top of that for a total between 6.75% and 7.5%.
  • Groceries, prescription medications, and most medical equipment are exempt from sales tax in North Carolina.
  • Clothing and shoes under $100 per item are tax-free, but items over that threshold are taxed on the full amount.
  • The tax applies to both in-store and online purchases, though some online sellers may not collect it depending on their location and business structure.

What's exempt from North Carolina sales tax

Groceries are the biggest exemption. Food you buy at a supermarket — bread, milk, vegetables, meat, canned goods — is not taxed. Prepared food and restaurant meals are taxed, but raw ingredients you cook at home are not.

Prescription medications and certain medical devices are also exempt. This includes insulin, inhalers, and other prescription items. Over-the-counter medications like cold medicine or pain relievers are taxed, but prescription-only drugs are not.

Clothing and shoes under $100 per item are tax-free. This is one of the most useful exemptions for shoppers. If you buy a shirt for $60, you pay no tax. If you buy a coat for $150, you pay tax on the full $150 — the exemption does not explore to items over the threshold. The $100 limit is per item, not per transaction, so you could buy ten $99 shirts tax-free.

Items that are always taxed

Gasoline, electricity, and natural gas are taxed at the full state and local rate. There is no exemption for utilities or fuel.

Alcohol and tobacco products carry the standard sales tax plus additional excise taxes on top. A bottle of beer or a pack of cigarettes costs more than the base price plus sales tax.

Services like haircuts, car repairs, and plumbing are taxed. If you pay someone to do work for you, that labor is subject to sales tax. The only common exception is labor that is part of a larger taxable sale — for example, if a contractor sells you materials and installs them, the whole transaction is taxed as a sale of goods.

How the clothing exemption works in practice

The $100-per-item rule is straightforward but worth understanding clearly. When you buy a pair of jeans for $85, you pay no tax. When you buy a winter coat for $180, the entire $180 is taxed — the exemption does not reduce the taxable amount to $100.

The limit applies to each individual item, not to your total purchase. If you buy five shirts at $30 each, none of them are taxed because each one is under $100. If you buy one shirt for $30 and one coat for $150, the shirt is tax-free and the coat is taxed on the full amount.

Accessories like belts, hats, and scarves are treated as clothing and follow the same $100 rule. Shoes are also included in the exemption. However, items like handbags, wallets, and luggage are not considered clothing and are always taxed, even if they cost less than $100.

Sales tax on online purchases

Online retailers are required to collect North Carolina sales tax if they have a physical presence in the state or meet certain sales thresholds. Large retailers like Amazon, Walmart, and Target collect the tax automatically. Smaller online sellers may not, depending on their business structure and location.

If you buy something online and no tax is collected, you are technically responsible for paying "use tax" to North Carolina — a tax on items you bring into the state. In practice, most people do not pay this, and the state does not actively pursue individual consumers for it. However, the law exists, and the tax is owed.

The safest approach is to assume tax will be collected on major retailers and to budget accordingly. If you notice a purchase was not taxed and you want to be compliant, you can report it when you file your state income tax return, though this is rarely done.

How to find your county's exact tax rate

Your county's combined sales tax rate is the state 4.75% plus your local rate. To find the exact number, visit the North Carolina Department of Revenue website and search for your county name. The page will show you the local rate, and you can add 4.75% to get the total.

You can also look at a recent receipt from any purchase in your county. The receipt will show the tax rate applied. If you bought something for $10 and paid $0.68 in tax, the rate was 6.8% — meaning your county has a 2.05% local rate.

Rates do not change often, but they can shift if a county votes to adjust its local tax. If you are planning a major purchase or comparing prices across counties, it is worth checking the current rate for your specific location.

Frequently Asked Questions

Do I pay sales tax on groceries in North Carolina?

No. Unprepared food — items you buy at a grocery store to cook at home — is not taxed. This includes meat, produce, dairy, bread, and canned goods. Restaurant meals and prepared foods are taxed, but raw groceries are not.

Are clothes always tax-free in North Carolina?

Clothing and shoes under $100 per item are tax-free. Items over $100 are taxed on the full amount. Accessories like handbags and belts follow the same rule, but items like luggage and wallets are always taxed.

What is the sales tax rate in my county?

The state rate is 4.75%, and your county adds between 2% and 2.75%. The total ranges from 6.75% to 7.5%. Check the North Carolina Department of Revenue website and search your county name to see the exact local rate.

Do I have to pay sales tax on online purchases?

Large online retailers collect North Carolina sales tax. Smaller sellers may not, depending on their location and sales volume. If tax is not collected, you technically owe use tax, but this is rarely enforced for individual consumers.

Is prescription medication taxed in North Carolina?

No. Prescription medications are exempt from sales tax. Over-the-counter medications like cold medicine or pain relievers are taxed at the full rate.