North Carolina charges a 4.75% state sales tax on most goods and some services
North Carolina sales tax is a tax added to the price of items you buy at checkout. The state rate is 4.75%, but your total tax can be higher because counties add their own local tax on top of it. Local rates range from 2% to 2.75%, which means you might pay between 6.75% and 7.5% in total sales tax depending on where you shop.
Sales tax applies to tangible goods — things you can touch and take home — like clothing, groceries, electronics, and furniture. Some services are taxed too, including repairs, alterations, and certain professional services. However, some items are exempt, meaning no sales tax applies to them at all.
The seller collects the tax from you at the register and sends it to the state and local government. You do not send in sales tax yourself unless you run a business.
Key Takeaways
- North Carolina's state sales tax rate is 4.75%, but your county adds 2% to 2.75% on top of that, making your total rate between 6.75% and 7.5%.
- Sales tax applies to most goods and some services, but groceries, prescription medications, and certain medical equipment are exempt.
- The tax is collected by the seller at checkout and sent to the state and local government — you do not file or pay it separately.
- Different counties have different local tax rates, so the total you pay varies by location within the state.
What items are taxed and what are exempt
Most physical items you buy are subject to sales tax in North Carolina. This includes clothing, shoes, electronics, furniture, toys, books, and household goods. When you buy these items, the seller adds the full state and local sales tax to your bill.
Some items are exempt from sales tax entirely. Groceries and food bought for home consumption are not taxed — this includes bread, milk, vegetables, and meat from a grocery store. Prescription medications are also exempt. Medical equipment like wheelchairs, hearing aids, and oxygen equipment used by a patient are exempt as well. Certain agricultural items and seeds used for farming are not taxed.
Services are taxed differently than goods. Repairs and alterations are taxable — for example, shoe repair, tailoring, and appliance repair all have sales tax added. However, some services like haircuts and dental work are not taxed in North Carolina.
How local county tax rates work
North Carolina allows each county to add its own local sales tax on top of the state rate. This local tax ranges from 2% to 2.75% depending on which county you are in. Some counties use the full 2.75%, while others use 2% or 2.25%.
Your total sales tax rate depends on where you make the purchase. If you buy something in Mecklenburg County (Charlotte), you pay a different total rate than if you buy the same item in Wake County (Raleigh). The seller knows the local rate for their location and applies the correct total to your purchase.
When you shop online from a North Carolina retailer, the tax applied is usually based on the retailer's location or the delivery address, depending on the company's policy. Out-of-state online retailers may or may not charge North Carolina sales tax depending on their business structure and state agreements.
What happens when you make a purchase
When you buy something at a store, the cashier or register system calculates the sales tax based on the item's price and your location. The tax is added to your total before you pay. For example, if you buy a $20 shirt in a county with a 7% total sales tax rate, you pay $21.40 at checkout.
The seller collects this tax from you and holds it temporarily. At regular intervals — usually monthly or quarterly — the seller sends the collected sales tax to the North Carolina Department of Revenue and to the local county. The seller is responsible for tracking and reporting the tax, not you.
If you are buying items for a business or organization that is exempt from sales tax, you may be able to provide a resale certificate or tax exemption certificate to avoid paying tax at the time of purchase. This is different from personal shopping and requires documentation.
Sales tax on services and repairs
Services in North Carolina are taxed on a case-by-case basis. Repairs and alterations are taxable — this includes car repairs, appliance repairs, shoe repair, and clothing alterations. When you pay for these services, sales tax is added to the bill.
Installation services are generally taxable if they are charged separately from the product. For example, if you buy flooring and the store charges you separately for installation, that installation charge is taxed. However, if the installation cost is bundled into one price, the treatment depends on the specific service.
Some services are not taxed. Haircuts, salon services, dental work, and medical services do not have sales tax added. Labor services like plumbing or electrical work performed at your home are not taxed either, though any materials the contractor provides may be taxed.
How to find your county's exact tax rate
To find out your exact sales tax rate, you need to know which county you are in. North Carolina has 100 counties, and each one sets its own local rate. The easiest way to find your rate is to check your receipt from a recent purchase — the tax rate is often printed on it.
You can also contact your county tax office directly or visit the North Carolina Department of Revenue website, which lists all county rates. If you are shopping in a different county than where you live, ask the cashier what the local rate is, or look at a receipt after your purchase.
The state rate of 4.75% is the same everywhere in North Carolina, but the local portion is what changes. Adding the state rate to your county's local rate gives you your total sales tax percentage.
Sales tax on online and mail orders
When you order items online from a North Carolina business, sales tax is usually added based on where the item is being shipped. If you live in North Carolina and the retailer ships to your address, North Carolina sales tax applies.
Out-of-state online retailers do not always charge North Carolina sales tax. Whether they do depends on whether they have a physical presence in the state or meet certain sales thresholds. Many large national retailers now charge sales tax in all states, but smaller retailers may not. The tax is not your responsibility to calculate or pay separately — if the retailer does not charge it, it is not collected.
If you order something from outside North Carolina and have it shipped to a North Carolina address, you generally do not owe sales tax unless the seller charged it. This is different from use tax, which is a separate tax some states require on out-of-state purchases, but North Carolina does not have a use tax that applies to individual consumers.
Frequently Asked Questions
Is sales tax included in the price shown on the shelf?
No. The price on the shelf or tag does not include sales tax. The tax is added at checkout. This is why your total bill is higher than the price you see displayed. Always budget for the additional tax when shopping.
Do I pay sales tax on groceries in North Carolina?
No. Groceries and food bought for home consumption are exempt from sales tax in North Carolina. This includes bread, milk, produce, meat, and canned goods. However, prepared foods, restaurant meals, and items like candy and soda are taxed.
What is the difference between state and local sales tax?
The state sales tax is 4.75% and goes to the state government. The local sales tax is 2% to 2.75% and goes to your county. Both are added together and collected by the seller at checkout. Your receipt may show them separately or as one combined total.
Do I need to report sales tax on my personal income tax return?
No. Sales tax is collected by the seller and reported by them to the state and county. As a consumer, you do not report or pay sales tax separately on your income tax return. Only businesses that collect sales tax need to report and remit it.
Can I get a refund of sales tax I already paid?
Generally, no. Once you pay sales tax at checkout, it is final. However, if you return an item and get a refund, the sales tax you paid on that item is refunded as well. The refund amount includes both the product price and the tax.