North Carolina's Current Sales Tax Rate

North Carolina charges a 4.75% sales tax on most retail purchases. This is the state rate that applies statewide. However, your total sales tax bill will likely be higher because counties can add their own local tax on top of the state rate.

When you buy something in North Carolina, you pay the state's 4.75% plus whatever local tax your county has set. Local rates range from 2% to 2.75%, which means your total sales tax at checkout will fall somewhere between 6.75% and 7.5%, depending on which county you're in.

Key Takeaways

  • North Carolina's state sales tax is 4.75%, but you will also pay a county tax that ranges from 2% to 2.75%.
  • Your total sales tax at the register depends on your county, not just the state rate.
  • Groceries, prescription medications, and some medical equipment are exempt from sales tax in North Carolina.
  • Different counties set different local rates, so the tax you pay in one county may differ from a neighboring county.

How County Taxes Add to the State Rate

North Carolina allows each county to set its own local sales tax rate. Most counties charge either 2%, 2.25%, 2.5%, or 2.75% on top of the state's 4.75%. A few counties have slightly different rates, but they fall within that range.

This means if you live in a county with a 2% local rate, your total sales tax is 6.75%. If your county has a 2.75% local rate, your total is 7.5%. The county where you make the purchase is what determines which rate applies—not where you live or where the business is headquartered.

What Is and Isn't Taxed in North Carolina

Not everything you buy is subject to sales tax in North Carolina. Groceries (unprepared food you cook at home) are exempt. Prescription medications are also tax-free. Medical equipment like wheelchairs, crutches, and diabetic supplies are exempt as well.

Prepared food—meals at restaurants, deli items, and hot food from a grocery store—is taxed. Clothing is taxed. Gasoline is taxed. Services like haircuts, car repairs, and plumbing are generally taxed. If you're unsure whether a specific item is taxed, the retailer can tell you at the register.

Finding Your County's Exact Sales Tax Rate

To find out your exact sales tax rate, you need to know your county. North Carolina has 100 counties, and each sets its own local rate. The easiest way to find your rate is to ask a cashier, check your receipt from a recent purchase, or contact your county's tax office directly.

You can also search online for "North Carolina sales tax by county" to find a list. The North Carolina Department of Revenue maintains current rates, though the rates themselves are set and managed by individual counties. If you're shopping online and the seller is based in North Carolina, they will charge you the sales tax rate for your delivery address.

Sales Tax on Online and Out-of-State Purchases

If you order something online from a North Carolina business and have it shipped to your address in the state, North Carolina sales tax applies based on your delivery location. The same rule applies if you order from an out-of-state business that has a physical presence in North Carolina or meets certain sales thresholds—they must charge you North Carolina sales tax.

Some out-of-state online retailers do not charge North Carolina sales tax because they don't meet the state's threshold for collecting it. However, North Carolina residents are technically responsible for paying "use tax" on those purchases when they file their state income tax return. In practice, most people do not report this, but it is the law.

Why Sales Tax Rates Vary by County

Counties use sales tax revenue to fund local services like schools, roads, emergency services, and public health programs. Because each county has different funding needs and different populations, they set their own local tax rates. A rural county with fewer residents might set a lower rate than a large urban county.

Counties can change their rates, though this happens infrequently. If a county decides to raise or lower its local sales tax, that change takes effect on a specific date, and retailers update their systems accordingly. You'll see the new rate reflected on your receipt after the change date.

Frequently Asked Questions

What is the total sales tax I'll pay in North Carolina?

Your total is the state rate of 4.75% plus your county's local rate. Most counties charge between 2% and 2.75%, so your total will be between 6.75% and 7.5%. Check your county's specific rate by asking a retailer or contacting your county tax office.

Are groceries taxed in North Carolina?

Unprepared groceries—items you buy to cook at home—are not taxed. This includes raw meat, vegetables, bread, and milk. Prepared food like restaurant meals, deli items, and hot foods from a grocery store are taxed.

Do I pay sales tax on prescription medications?

No. Prescription medications are exempt from North Carolina sales tax. Over-the-counter medications like pain relievers and cold medicine are taxed, but prescriptions filled by a pharmacist are not.

Is clothing taxed in North Carolina?

Yes. Clothing and shoes are subject to North Carolina sales tax at both the state and local rates. There is no clothing exemption in the state.

What happens if I buy something online from out of state?

If the out-of-state seller has a physical location in North Carolina or meets sales thresholds set by the state, they must charge you North Carolina sales tax based on your delivery address. If they don't, you are technically responsible for paying use tax on your state income tax return, though this is rarely enforced for individual purchases.