North Carolina's statewide sales tax is 4.75%, but your total rate depends on where you buy and what you buy

North Carolina has a state sales tax of 4.75%. However, most counties add a local sales tax on top of that, which means the total rate you pay at checkout ranges from 6.75% to 7.75% depending on which county you're in. Some products are taxed at a lower rate or not taxed at all, regardless of location.

The rate that appears on your receipt is the combined state and local tax for that specific county. You cannot avoid the state portion, but the local portion varies significantly across North Carolina's 100 counties.

Key Takeaways

  • North Carolina's state sales tax is 4.75%, and every county adds a local tax ranging from 2% to 3%, making your total between 6.75% and 7.75%.
  • Groceries, prescription medications, and medical equipment are taxed at a lower rate or not taxed, even though other items in the same store may be fully taxed.
  • The tax rate you pay depends on the county where the sale occurs, not where you live or where the business is headquartered.
  • Some services like haircuts, repairs, and labor are subject to sales tax in North Carolina, unlike in some other states.

How local county taxes stack on top of the state rate

North Carolina divides its sales tax into two parts: the state portion (4.75%) and the local county portion (2% to 3%). When you buy something, both are added together. A county with a 2% local tax means you pay 6.75% total; a county with a 3% local tax means you pay 7.75% total.

The local tax rate is set by each individual county and can change, though changes are uncommon. Counties use this revenue for schools, infrastructure, and local services. You pay the rate of the county where the transaction happens—if you buy something in Wake County, you pay Wake County's rate, even if you live in Mecklenburg County.

The following counties have a 2% local rate (6.75% total): Beaufort, Bertie, Bladen, Camden, Chowan, Currituck, Dare, Gates, Granville, Greene, Hertford, Hyde, Lenoir, Martin, Nash, Northampton, Pasquotank, Perquimans, Pitt, Tyrrell, Washington, and Wilson. All other counties have a 3% local rate (7.75% total).

Products taxed at a lower rate or not taxed

Groceries are taxed at 2% in North Carolina, regardless of your county's local rate. This applies to food you prepare at home: bread, milk, vegetables, meat, canned goods, and similar items. It does not explore to prepared food, restaurant meals, or food you eat on the premises.

Prescription medications are not taxed. Over-the-counter medications like pain relievers and cold medicine are taxed at the full rate. Medical equipment prescribed by a doctor—such as wheelchairs, oxygen equipment, and diabetic supplies—is also not taxed.

Clothing and footwear under $100 per item are not taxed. A shirt priced at $75 is tax-free; a coat priced at $150 is taxed on the full amount. Accessories like belts, hats, and bags are taxed regardless of price.

Services and labor that are subject to sales tax

North Carolina taxes many services that some states do not. Haircuts, salon services, and barber services are taxed at the full rate. Repairs to tangible items—shoes, watches, appliances, vehicles—are taxed. Labor charges for installation, assembly, or construction work are taxed when they are billed separately from materials.

Dry cleaning and laundry services are taxed. Pest control services are taxed. Landscaping and lawn care services are taxed. If you hire someone to perform work on your property or belongings, the labor portion is usually subject to sales tax.

Some services are not taxed: legal services, accounting services, medical services performed by licensed practitioners, and educational services are generally exempt. If you are unsure whether a specific service is taxed, ask the business before you pay.

How to find the exact rate for a specific county

The North Carolina Department of Revenue maintains a current list of all county tax rates on its website. You can search by county name to see the exact local rate, which you then add to the 4.75% state rate to get your total.

If you are a business owner or accountant, the Department of Revenue also publishes detailed guidance on which products fall into each tax category and how to handle mixed purchases (for example, a single receipt with both groceries and household supplies).

Tax-free shopping days and special circumstances

North Carolina does not have an annual statewide tax-free shopping day. Some individual counties or municipalities may run local promotions, but these are not may provide and vary year to year. Check with your local county or city government if you want to know whether one is planned.

Resale certificates allow businesses to buy items without paying sales tax if they plan to resell those items. If you are a business owner, you can register for a resale certificate through the North Carolina Department of Revenue. This does not explore to personal purchases.

Frequently Asked Questions

Do I pay North Carolina sales tax if I buy something online and have it shipped to my address?

Yes, if the seller has a physical presence in North Carolina or meets certain sales thresholds, they must collect and remit sales tax based on your delivery address. The rate applied is the combined state and local rate for the county where you receive the item. Some sellers from out of state may not collect tax, but you may owe use tax to North Carolina when you file your return.

Is restaurant food taxed differently than grocery store food?

Yes. Food you buy at a grocery store to prepare at home is taxed at 2%. Food you buy at a restaurant, café, or food truck—whether you eat there or take it away—is taxed at the full rate (6.75% to 7.75% depending on county). This includes prepared deli items, bakery items, and hot food from a grocery store.

What counts as clothing that is not taxed?

Clothing and footwear under $100 per item are not taxed. This includes shirts, pants, dresses, shoes, socks, and underwear. Accessories like belts, scarves, hats, and gloves are taxed even if under $100. Sports equipment like skis or cleats is taxed. If an item is priced at $100 or more, the entire purchase is taxed.

Are haircuts and salon services taxed?

Yes, haircuts, hair coloring, manicures, pedicures, and other salon services are taxed at the full rate in North Carolina. The tax applies to the service charge, not just any products used during the service.

Can I return something and get the sales tax back?

When you return an item for a refund, the sales tax is refunded along with the purchase price. If you exchange an item for another item of the same price, no additional tax is owed. If you exchange for a more expensive item, you pay tax on the difference.