North Carolina's statewide sales tax is 4.75 percent
North Carolina charges a 4.75 percent sales tax on most retail purchases. This is the base rate that applies across the state. However, your actual tax at checkout will often be higher because counties and cities can add their own local sales taxes on top of the state rate.
The total tax you pay depends on where you shop. A purchase in one county might cost you 5.5 percent in tax, while the same item in another county costs 6.5 percent. This variation matters most on large purchases — a $1,000 appliance will cost you $47.50 more in tax in a high-tax county than a low-tax one.
Key Takeaways
- North Carolina's state sales tax is 4.75 percent, but most counties add local taxes that raise the total to between 6.5 and 7.5 percent.
- Local tax rates vary by county and sometimes by city, so you need to know your specific location to find your exact rate.
- Groceries, prescription medications, and medical equipment are exempt from sales tax in North Carolina.
- The tax applies to both in-store and online purchases when the seller has a physical location in the state.
How local taxes add to the state rate
Counties in North Carolina can impose a local sales tax between 2 and 2.75 percent on top of the state's 4.75 percent. Some counties use the full 2.75 percent allowed; others use less. A few counties have also approved additional local taxes for specific purposes like transportation or schools, which can push the total even higher.
The combined rate in most North Carolina counties falls between 6.5 and 7.5 percent. Mecklenburg County (Charlotte) charges 7.25 percent. Wake County (Raleigh) charges 7.25 percent. Guilford County (Greensboro) charges 7 percent. Some rural counties charge as low as 6.5 percent. You can find your county's exact rate by searching "[your county name] North Carolina sales tax" or by calling the county tax assessor's office.
What is and is not taxed
Sales tax in North Carolina applies to tangible goods — items you can touch and take home. This includes clothing, electronics, furniture, and vehicles. It also applies to most services, including haircuts, repairs, and restaurant meals.
Several categories are exempt from sales tax. Groceries and food bought for home consumption are not taxed. Prescription medications are not taxed. Medical devices prescribed by a doctor, such as wheelchairs or hearing aids, are not taxed. Certain agricultural equipment and materials used in manufacturing are also exempt. However, prepared foods, candy, and soft drinks are taxed even though they are food items.
Sales tax on online and out-of-state purchases
If you buy something online from a seller with a physical location in North Carolina, you pay North Carolina sales tax at checkout. If you buy from an out-of-state seller with no North Carolina presence, the seller typically does not charge North Carolina tax — but you may owe use tax on that purchase when you file your state income tax return. Most people do not report use tax, and enforcement is minimal.
Large online retailers like Amazon, Walmart, and Target now have warehouses or offices in North Carolina, so they collect sales tax on orders shipped to the state. Smaller sellers may not, depending on their business structure. If you are unsure whether tax was charged, check your receipt or order confirmation.
Sales tax on vehicles and special items
North Carolina charges sales tax on vehicle purchases at the rate that applies in the county where you register the vehicle, not where you buy it. The tax is calculated on the sale price and is collected by the dealer at the time of purchase. If you buy a used car from a private seller, you still owe sales tax when you register it with the Department of Motor Vehicles.
Other special items follow standard rules. Boat purchases are taxed. RV purchases are taxed. Trade-in value does not reduce the taxable amount — you pay tax on the full sale price. If you are unsure about a specific item, the North Carolina Department of Revenue website lists detailed exemptions and special cases.
Finding your exact local rate
Your sales tax rate depends on the county where the sale occurs, not where you live. If you shop in a different county, you pay that county's rate. To find your rate, start with your county name and the phrase "sales tax rate." The county tax assessor's office website usually lists it clearly.
You can also call your county tax assessor's office directly — the number is listed on the county government website. Have your address ready, because some cities within a county may have slightly different rates due to local options taxes. The assessor's office can tell you the exact rate that applies to your location.
Frequently Asked Questions
Do I pay sales tax on groceries in North Carolina?
No. Groceries and food bought for home consumption are exempt from sales tax. This includes bread, milk, vegetables, meat, and canned goods. However, prepared foods like deli items, restaurant meals, and hot foods are taxed.
What is the sales tax rate in Charlotte?
Mecklenburg County, where Charlotte is located, has a combined sales tax rate of 7.25 percent. This is the state rate of 4.75 percent plus the local rate of 2.5 percent.
Do I owe sales tax on used items bought from a private person?
No. Sales tax applies to retail sales by businesses. If you buy a used item from a private individual, no sales tax is owed. However, if you buy a used vehicle from a private seller, you owe sales tax when you register it with the DMV.
Is sales tax charged on online purchases shipped to North Carolina?
It depends on the seller. Large retailers with a North Carolina presence collect sales tax at checkout. Smaller sellers without a North Carolina location typically do not, though you may owe use tax on your state income tax return.
Are prescription medications taxed in North Carolina?
No. Prescription medications are exempt from sales tax. Over-the-counter medications and vitamins are also exempt. However, other health and beauty items like shampoo and toothpaste are taxed.