This blog was last updated on June 30, 2026
North Carolina Sales Tax Rate (2026)
North Carolina imposes a statewide sales and use tax rate of 4.75%. The state does allow local jurisdictions to levy additional sales taxes, meaning the total North Carolina sales tax rate varies depending on where a transaction takes place. Understanding North Carolina sales tax laws is essential for businesses selling within or into the state.
What’s Taxable in North Carolina?
North Carolina sales and use tax applies to the sale of tangible personal property and certain enumerated services. Businesses selling taxable goods and services are generally required to collect and remit sales tax to the state.
Understanding which products and services are taxable is an important part of managing North Carolina sales tax for businesses, particularly for companies selling across multiple channels or into the state through ecommerce.
Examples of taxable items and services include:
- Clothing
- Prewritten computer software
- Non-prescription medical items or drugs
- Prepared food
- Telecommunication services
- Certain installation or repair services
Sales Tax Nexus in North Carolina
A seller is liable to collect and remit North Carolina sales tax if they meet the state’s nexus requirements. Nexus can be established through either physical or economic presence.
North Carolina: Physical Nexus
Physical presence is created by having a business location, office, warehouse, vehicle, employee, or other representative operating in the state of North Carolina.
North Carolina: Economic Nexus
North Carolina enforces economic nexus for remote sellers. If your business has over $100,000 in sales in North Carolina during the current or previous calendar year, you may be required to register for and collect North Carolina sales tax.
These economic nexus requirements make it especially important for companies engaged in ecommerce to understand their North Carolina sales tax for businesses obligations.
Learn more on the North Carolina Remote Sales Page.
North Carolina Sales Tax Exemptions
Certain transactions qualify for North Carolina sales tax exemptions, reducing or eliminating the tax due on eligible purchases.
Exempt Products and Services
- Most services (unless North Carolina statutes specify otherwise)
- Certain food and food ingredients
- Certain agricultural items
- Medical equipment
- Prescription drugs
- Software as a Service (SaaS)
Entity- or Use-Based Exemptions
Additionally, North Carolina exempts sales to certain entities from the sales/use tax, including the following:
- Certain qualified nonprofit entities
- 501(c)(3) and 501(c)(4) organizations
- Churches and houses of religious worship
- Nonprofit schools, hospitals and homes for children and aged persons
- Certain wholesalers
- Retailers selling for resale
- Industrial processors
- Schools
- Government
How to Claim Sales Tax Exemption in North Carolina
To claim an exemption, an entity must provide an exemption certificate with the sale. North Carolina allows the use of the Multijurisdictional Exemption Certificate. created by the Multistate Tax Commission for appropriate purchases for resale. The certificate is currently accepted by 38 other states.
North Carolina also provides a Streamlined Sales and Use Tax Agreement Certificate of Exemption (Form E-595E). This is a multi-state form. Not all states allow all exemptions listed on this form. Purchasers are responsible for knowing if they qualify to claim exemption from tax in the state that would otherwise be due tax on this sale. The seller may be required to provide this exemption certificate (or data elements required on the form) to a state that would otherwise be due tax on this sale. Use this form to claim exemption from sales tax on purchases of otherwise taxable items. The purchaser must complete all fields on the exemption certificate and provide the fully completed certificate to the seller in order to claim exemption.
Businesses should also be aware of North Carolina use tax requirements, which generally apply when taxable goods are purchased without paying sales tax and are later stored, used or consumed within the state.
North Carolina Filing and Remittance Requirements
North Carolina requires filing using the E-500 return. Businesses can complete North Carolina sales tax online filing through the North Carolina Department of Revenue’s electronic filing system using Form E-500.
North Carolina General Statute 105-342(b) permits the Secretary of Revenue to require certain tax payments to be remitted electronically. If your business tax liability is at least $240,000 in a 12-month period, you will be notified by letter of the electronic payment requirement. Any of the Department’s electronic payment methods will satisfy the electronic payment requirement.
Please see the NC DOR website for additional information.
Frequently Asked Questions
Is North Carolina a part of the Streamlined Sales Tax (SST) initiative?
Yes, North Carolina is part of the Streamlined Sales Tax (SST) initiative, a multi-state agreement designed to simplify and standardize sales tax rules. More information concerning SST may be found here.
Does North Carolina have sales tax holidays?
No, North Carolina does not currently offer sales tax holidays. Businesses should continue collecting applicable sales tax throughout the year unless state law changes.
Are there any special point of sale fees in North Carolina?
Point-of-sale fees are fixed amount or rate-based assessments levied on certain products or services at the time of sale and paid by the final consumer at retail. For example, North Carolina imposes the following point of sale fees:
- E911 Fees for Prepaid Wireless: North Carolina imposes an E-911 fee on prepaid wireless services in the amount of $0.55 per retail transaction to be collected at the retail point of sale and remitted to the North Carolina Department of Revenue.
- Tire Fee: North Carolina imposes a privilege tax on tire retailers at a percentage rate of the sales price of each new tire sold at retail. The rate of the tax imposed is based on the bead diameter of the new tire sold or purchased (the bead diameter is the diameter of the hole in the center of the tire or the diameter of the rim). Where the bead diameter is less than 20 inches, the tax is imposed at a 2% rate; where the bead diameter is at least 20 inches, the tax is imposed at a 1% rate.
- White Goods Fee: North Carolina imposes a $3 advance disposal fee on sales of new white goods, including refrigerators, ranges, water heaters, freezers, unit air conditioners, washing machines, dishwashers, clothes dryers and other similar domestic and commercial large appliances. Please see this bulletin from the NC DOR for additional information.
Does North Carolina apply sales tax to shipping charges?
Generally, North Carolina applies sales tax to shipping charges.
For sourcing sales tax, is North Carolina origin or destination based?
North Carolina is destination based.
Can I use the Simplified Electronic Return (SER) in North Carolina if I’m not in the SST Model 1 program?
Yes. North Carolina accepts Simplified Electronic Returns (SER) from any seller or tax provider that can transmit the return properly. You don’t need to be in the SST Model 1 program to use the SER—providers like Sovos can file on behalf of any client who opts into that method.
How to Register for a North Carolina Sales Tax License
Every business, person, or facilitator engaged in business in North Carolina must register online or by mail with the department to obtain a certificate of registration. There is no fee to apply for a certificate of registration in North Carolina
Please see the NC DOR website for additional information. Registering once nexus has been established helps businesses comply with North Carolina sales tax laws and avoid potential penalties.
Additional Resources
For more information on U.S. sales tax compliance across all 50 states, check out our: