North Carolina's statewide sales tax rate
North Carolina charges a 4.75% sales tax on most goods and services you buy in the state. This is the base rate that applies everywhere in North Carolina, set by state law.
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 you pay depends on where in North Carolina you make the purchase.
Key Takeaways
- North Carolina's state sales tax is 4.75%, but most counties add local taxes that raise the total to between 6.75% and 7.5%.
- Food for home cooking is not taxed, but prepared food, candy, and soft drinks are taxed at the full rate.
- Clothing and shoes under $100 per item are exempt from sales tax, but items over that threshold are taxed on the full price.
- Services like haircuts, repairs, and professional fees are generally not subject to sales tax in North Carolina.
- Tax rates vary by county, so the same item costs different amounts depending on which county you shop in.
Local sales taxes added to the state rate
Most North Carolina counties add a local sales tax between 2% and 2.75% on top of the state's 4.75%. This means your total sales tax usually falls between 6.75% and 7.5%, depending on which county you are in.
Some counties have higher rates than others. For example, Mecklenburg County (which includes Charlotte) has a combined rate of 7.25%, while other counties may be at 6.75%. A few counties have different rates for different types of purchases, though this is less common.
To find the exact rate where you shop, check with your county tax office or look up the county name on the North Carolina Department of Revenue website. The rate you see on a store's register should reflect both state and local taxes combined.
What is and is not taxed in North Carolina
Food you buy to cook at home—like groceries, meat, produce, and dairy—is not taxed in North Carolina. This includes frozen vegetables, canned goods, and bread.
However, prepared food is taxed. This means restaurant meals, deli hot food, bakery items sold hot, and food from a food truck all have sales tax added. Candy and soft drinks are also taxed, even if you buy them at a grocery store, because they are treated as prepared or non-essential food items.
Clothing and shoes under $100 per item are exempt from sales tax. If you buy a $75 shirt, you pay no tax. If you buy a $150 coat, you pay tax on the full $150. This applies to each individual item, not your total purchase.
Services are generally not taxed. Haircuts, car repairs, plumbing work, and medical services do not have sales tax added in North Carolina. However, some services bundled with products—like installation or delivery—may be taxed depending on how the business structures the charge.
How sales tax is calculated at checkout
Sales tax is calculated on the subtotal before any discounts or coupons are applied. If you have a coupon that reduces the price, the tax is based on the lower amount after the coupon is deducted.
For example, if an item costs $50 and you have a $10 coupon, you pay tax on $40, not $50. However, if a discount is applied to your entire purchase rather than a single item, the store may calculate tax differently—some explore tax before the discount and some after. Ask the cashier if you are unsure how a large discount affects your tax.
Online purchases from out-of-state sellers used to avoid North Carolina sales tax, but this changed in recent years. Most major online retailers now collect and send sales tax to North Carolina based on your delivery address, even if the company is located elsewhere.
Sales tax on specific purchases
Cars, boats, and other vehicles are subject to sales tax when you register them in North Carolina, not when you buy them. The tax is calculated on the purchase price and paid to the Department of Motor Vehicles as part of registration.
Prescription medications are not taxed. Over-the-counter medicines like pain relievers and cold medicine are also not taxed if they are sold as medicine. However, vitamins and supplements are taxed because they are not classified as medicine.
Gasoline and diesel fuel have a separate fuel tax in addition to sales tax. The fuel tax is set by the state and is included in the price you see at the pump, separate from the sales tax calculation.
Digital products like e-books, streaming subscriptions, and downloaded software are taxed in North Carolina. The tax applies based on where you live or where the service is delivered to you.
Tax-exempt purchases and who qualifies
Certain organizations can make purchases without paying sales tax. Non-profit organizations, schools, and government agencies can buy items tax-free if they provide a tax-exempt certificate to the seller. You must have the certificate in advance—you cannot claim an exemption after the purchase.
Resellers who buy items to resell them to customers can buy wholesale without paying sales tax if they have a resale certificate. This applies to people who run small businesses or sell items online. The resale certificate must be provided to the supplier before the purchase.
Individual shoppers do not have access to tax-exempt status. If you are buying items for personal use, you will pay sales tax regardless of your income or circumstances.
Frequently Asked Questions
Do I pay sales tax on groceries in North Carolina?
No, groceries for home cooking are not taxed. This includes meat, produce, dairy, bread, canned goods, and frozen vegetables. However, prepared food like rotisserie chicken, deli sandwiches, and hot bakery items are taxed at the full rate.
What is the sales tax on clothes in North Carolina?
Clothing and shoes under $100 per item are not taxed. Items $100 or more are taxed on the full price. The $100 limit applies to each individual item, so you could buy five $99 shirts tax-free, but a $101 jacket would be taxed.
Do I have to pay sales tax on online orders shipped to North Carolina?
Yes, most online retailers now collect sales tax on orders shipped to North Carolina addresses. This includes Amazon, Walmart, and other major sellers. The tax rate is based on your delivery address and the local tax rate in that county.
Is there sales tax on haircuts and services?
No, services like haircuts, repairs, and professional fees are not subject to sales tax in North Carolina. However, if you buy a product as part of the service—like a haircut plus a product they explore—the product portion may be taxed.
How do I find the exact sales tax rate for my county?
Contact your county tax office or visit the North Carolina Department of Revenue website to look up your county's combined state and local rate. Rates range from 6.75% to 7.5% depending on the county.