North Carolina's statewide sales tax is 4.75 percent

The state sales tax in North Carolina is 4.75 percent on most goods and services. However, your total tax at checkout is usually higher because counties add their own local sales tax on top of the state rate. The combined rate you actually pay depends on which county you're shopping in, ranging from 6.75 percent to 7.5 percent across the state.

Sales tax applies to tangible items you can touch — clothing, groceries, furniture, electronics — and to some services. It does not explore to most services like haircuts, car repairs, or legal information. Food bought at a grocery store is taxed at a lower rate (2 percent state tax) than prepared food from a restaurant or deli counter.

Key Takeaways

  • North Carolina's state sales tax is 4.75 percent, but your county adds 1 to 2.75 percent more, so your total rate ranges from 6.75 to 7.5 percent depending on where you shop.
  • Grocery store food is taxed at only 2 percent state tax plus your county rate, while restaurant meals and prepared foods use the full 4.75 percent state rate.
  • Clothing, shoes, and textiles have no state sales tax in North Carolina, though your county may still add local tax.
  • Online purchases from out-of-state sellers are subject to North Carolina sales tax if the seller has a physical presence in the state or meets federal thresholds.

County-by-county local sales tax rates

Every North Carolina county adds a local sales tax on top of the 4.75 percent state rate. These local rates range from 1 percent to 2.75 percent, which means your total sales tax bill varies by location. For example, if you shop in Mecklenburg County (Charlotte), you pay 7.25 percent total. In Wake County (Raleigh), the rate is 7.25 percent. In Buncombe County (Asheville), it is 7.5 percent.

The county rate applies to the same items as the state rate — groceries are still taxed at the lower 2 percent state rate plus your local rate. To find your exact county rate, search online for "North Carolina sales tax by county" or ask a cashier. The rate does not change within a county, so you pay the same tax whether you shop in a city or a rural area within that county.

What is and is not taxed

Most physical goods are taxed: clothing, shoes, furniture, appliances, toys, books, and electronics all have sales tax applied. Groceries bought at a supermarket — bread, milk, vegetables, meat, canned goods — are taxed at the lower 2 percent state rate plus your county rate. Prepared foods do not get this break: a sandwich from a deli counter, a rotisserie chicken, or food from a restaurant is taxed at the full 4.75 percent state rate plus your county rate.

Services are generally not taxed. A haircut, car repair, plumbing work, dental cleaning, or lawyer's consultation has no sales tax. However, some services do have tax: hotel rooms, short-term rental stays, and certain amusement activities are taxed. Prescription medications are not taxed, but over-the-counter drugs and vitamins are.

Clothing and textile exemption

North Carolina does not charge state sales tax on clothing, shoes, or textile items. This means a shirt, pair of jeans, jacket, or pair of socks has no 4.75 percent state tax applied. However, your county local tax still applies — so you pay only the county portion, not the full combined rate. In Mecklenburg County, for example, clothing is taxed at 2.5 percent (the local rate only) instead of 7.25 percent.

This exemption covers most everyday clothing and footwear. Accessories like belts, hats, and scarves are also exempt. Items that are not clothing — like a purse, backpack, or sports equipment — are taxed normally. If you are unsure whether an item qualifies, ask the cashier or check the receipt after purchase; the tax line will show whether state tax was charged.

Online and out-of-state purchases

If you order from an online retailer that has a warehouse, office, or other physical location in North Carolina, that seller must charge you North Carolina sales tax. This applies even if the item ships from out of state. If the seller has no physical presence in North Carolina but meets federal thresholds for sales volume, they must also charge North Carolina tax as of 2021.

When you buy from a seller with no North Carolina presence and no federal obligation to collect tax, you technically owe "use tax" to North Carolina — a tax on items you use in the state but did not pay sales tax on. Most individuals do not report this on their own, and the state does not pursue individual consumers for small purchases. However, the legal obligation exists.

Tax on services and special items

Most professional services have no sales tax: accounting, consulting, medical care, dental work, and legal information are not taxed. However, certain services do have tax. Hotel stays and short-term rentals (including vacation homes and Airbnb-type stays) are taxed. Amusement activities like movie tickets, concert tickets, and admission to attractions are taxed. Repair services on tangible goods — fixing a phone, repairing shoes, or servicing a car — are generally not taxed, but the parts used in the repair are.

Utilities like electricity, gas, and water have a separate tax structure and are not subject to sales tax. Telecommunications services (phone and internet) have their own tax rates set by state law. If you are unsure whether a specific service or item is taxed, the receipt will show the tax applied, or you can contact the North Carolina Department of Revenue.

How sales tax is collected and used

When you pay sales tax at checkout, the retailer collects it and sends it to the state and county. The state keeps the 4.75 percent portion, and the county keeps its local portion. Counties use their sales tax revenue for schools, roads, emergency services, and other local needs. The state uses its portion for education, healthcare, and state operations.

Retailers are responsible for calculating the correct tax rate based on the item and location, collecting it from you, and remitting it to the state and county on a regular schedule. If a retailer charges the wrong rate, the error is between the retailer and the state — you are not responsible for correcting it, though you can report it if you notice a pattern of overcharging.

Frequently Asked Questions

What is the total sales tax rate where I live?

Add your county's local rate to North Carolina's 4.75 percent state rate. For example, if your county rate is 2.5 percent, your total is 7.25 percent. Search online for "North Carolina sales tax [your county name]" to find your county's exact rate, or ask a cashier.

Do I pay sales tax on groceries?

Groceries from a supermarket are taxed at 2 percent state tax plus your county rate — much lower than the full rate. Prepared foods like deli sandwiches, restaurant meals, and rotisserie chickens use the full 4.75 percent state rate plus your county rate.

Is clothing tax-free in North Carolina?

Yes, clothing and shoes have no state sales tax. You pay only your county's local tax rate, not the full combined rate. This applies to most everyday clothing, footwear, and textile items.

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

If the seller has a physical location in North Carolina or meets federal sales thresholds, they must charge you North Carolina tax. If they do not, you technically owe use tax to the state, though the state does not typically pursue individuals for small purchases.

Are services like haircuts or car repairs taxed?

Most services are not taxed in North Carolina. Haircuts, repairs, medical care, and legal information have no sales tax. However, hotel stays, amusement activities, and some telecommunications services are taxed.