North Carolina charges 4.75% state sales tax on most goods, plus local taxes that range from 2% to 2.75%, for a total between 6.75% and 7.5% depending on your county

The state sales tax rate is 4.75% across North Carolina. On top of that, each county adds its own local sales tax. The local rate depends on where you live — some counties add 2%, others add 2.75%. This means the total tax you pay at checkout ranges from 6.75% to 7.5%. The county where the sale happens determines which rate applies, not where you live.

Sales tax is added at the point of sale. If you buy something for $100 in a county with a 7% combined rate, you pay $107 at the register. The retailer collects the tax and sends it to the state and local government.

Key Takeaways

  • North Carolina's state sales tax is 4.75%, and counties add 2% to 2.75% on top of that for a combined rate between 6.75% and 7.5%.
  • The tax rate that applies is determined by the county where you make the purchase, not by where you live.
  • Most tangible goods are taxed, but groceries, prescription medications, and medical equipment are exempt.
  • Services are generally not subject to sales tax in North Carolina, with a few exceptions like certain repairs and telecommunications.

What Is Taxed and What Is Not

Most physical items you buy in stores are subject to sales tax — clothing, electronics, furniture, household goods, and toys all get taxed. However, groceries are not taxed in North Carolina. This means food you buy at a grocery store to prepare at home is tax-free, but prepared food from a restaurant or deli counter is taxed.

Prescription medications are also exempt from sales tax. Over-the-counter medicines like pain relievers and cold medicine are taxed, but anything you need a prescription to buy is not. Medical equipment and supplies — including items like wheelchairs, crutches, and diabetic testing supplies — are exempt when they are prescribed by a doctor.

Services are generally not taxed in North Carolina. Haircuts, dental work, legal information, and accounting services do not have sales tax added. However, some services do get taxed: repairs to tangible goods (like fixing a car or appliance), telecommunications services, and certain other specific services are subject to tax.

Local Sales Tax Rates by County

North Carolina has 100 counties, and each one sets its own local sales tax rate. Most counties use either 2% or 2.75%, but the exact rate depends on decisions made by that county's government. The combined state and local rate in your county determines what you pay.

To find your county's rate, you can search online for "North Carolina sales tax by county" or contact your county tax assessor's office. The rate can also vary slightly within a county if a city has added an additional local tax for specific purposes, though this is less common. When you shop online and the seller ships to North Carolina, the tax rate applied is based on the delivery address, not where the company is located.

When You Do Not Pay Sales Tax

If you have a resale certificate, you do not pay sales tax on goods you buy to resell. Businesses use resale certificates to purchase inventory without tax, then collect tax from customers when they sell those items. You must register with the North Carolina Department of Revenue to get a resale certificate.

Certain organizations — including nonprofits, government agencies, and religious institutions — may be exempt from sales tax on purchases they make for their operations. The exemption process varies by organization type and requires documentation. Individuals do not receive a blanket exemption; you pay sales tax on personal purchases regardless of your income or circumstances.

How Sales Tax Affects Your Budget

Sales tax is not included in the price tag you see on most items. The amount shown is the pre-tax price, and tax is added at checkout. This means if you see an item priced at $50, you will actually pay between $53.38 and $53.75 depending on your county's combined rate. Over time, this adds up — on $1,000 in purchases, you pay between $67.50 and $75 in tax.

Groceries are the biggest category where you save on tax. A family that spends $400 per month on groceries avoids paying $27 to $30 in sales tax each month because food is exempt. This is why the grocery exemption makes a larger difference for households with lower incomes, since food is a larger share of their budget.

Online Shopping and Sales Tax

Online retailers must collect North Carolina sales tax on orders shipped to addresses in the state. This applies whether the company is based in North Carolina or anywhere else in the country. The tax rate applied is based on the zip code of the delivery address, so the same item may have different tax amounts depending on which county you live in.

If you order something online and it is shipped to North Carolina, you should see the sales tax added before you complete your purchase. If a retailer does not collect tax, you are technically responsible for paying it yourself through a process called "use tax," though this is rarely enforced for individual purchases. The use tax rate is the same as the sales tax rate in your county.

Frequently Asked Questions

Do I pay sales tax on clothes in North Carolina?

Yes, clothing is subject to sales tax in North Carolina. There is no clothing exemption, so shirts, pants, shoes, and accessories all get taxed at your county's combined rate.

Are restaurant meals taxed differently than grocery store food?

Yes. Food you buy at a grocery store to cook at home is not taxed. Food prepared and ready to eat — from restaurants, delis, bakeries, or food trucks — is taxed at your full local rate.

What if I buy something in one county and use it in another?

The tax rate that applies is the rate in the county where you make the purchase, not where you use the item. If you buy something in a county with a 6.75% rate and take it to a county with a 7.5% rate, you pay the 6.75% rate at checkout.

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

Most major online retailers collect North Carolina sales tax on orders shipped to the state. If a seller does not collect it, you may owe use tax, though enforcement on individual purchases is uncommon. The rate is the same as your county's sales tax rate.