North Carolina's statewide sales tax rate

North Carolina charges a 4.75% sales tax on most retail purchases. This is the base rate that applies statewide, but your total tax can be higher because counties add their own local sales taxes on top of it.

The 4.75% rate has been in place since 2011. It applies to tangible goods — things you can touch and take home — as well as some services. The tax is collected by the merchant at the point of sale and sent to the state.

Key Takeaways

  • North Carolina's state sales tax is 4.75%, but your county may add 2% to 2.75% more, making your total between 6.75% and 7.5%.
  • Groceries, prescription medications, and medical equipment are exempt from sales tax in North Carolina.
  • Services like haircuts, repairs, and professional fees are generally not taxed, but prepared food and restaurant meals are.
  • The tax rate you pay depends on where the sale happens, not where you live, so buying in a different county changes your total tax.

How county taxes add to the state rate

Every North Carolina county adds its own local sales tax on top of the state 4.75%. These county rates range from 2% to 2.75%, which means your total sales tax bill ranges from 6.75% to 7.5% depending on which county you are in.

Some counties use the full 2.75% local rate. Others use 2% or 2.25%. You can find your county's specific rate by checking with your county tax assessor's office or the North Carolina Department of Revenue website. The rate that matters is the one where the purchase happens, not where you live — so if you buy something in a neighboring county, you pay that county's combined rate.

What is and is not taxed

Exempt from sales tax are groceries (unprepared food you cook at home), prescription medications, medical equipment and supplies, and certain mobility devices. Clothing is also exempt in North Carolina, though this does not include accessories like belts, hats, or jewelry.

Taxed items include prepared food, restaurant meals, takeout, and food from a deli counter. Clothing alterations are taxed. Services like haircuts, dry cleaning, and car repairs are generally not subject to sales tax, but the products used in those services sometimes are — for example, a haircut is not taxed, but the shampoo sold separately is.

Digital products and downloads — software, e-books, streaming subscriptions, and digital music — are not subject to North Carolina sales tax. However, physical media like DVDs or CDs are taxed.

Sales tax on services

Most services in North Carolina are not subject to sales tax. This includes labor charges for repairs, professional services like accounting or legal information, and personal services like haircuts or massages. The service itself is not taxed.

The distinction matters because a repair shop might charge you separately for parts (which are taxed) and labor (which is not). If your invoice lists them separately, tax applies only to the parts. If the shop bundles them into one price, the entire amount is typically not taxed — but you should ask to be sure.

Tax on online and out-of-state purchases

If you order something online from a seller outside North Carolina, you may still owe sales tax. North Carolina requires out-of-state sellers to collect and send the tax if they have a physical presence in the state or meet certain sales thresholds. Many large online retailers now collect North Carolina sales tax automatically at checkout.

If a seller does not collect the tax, North Carolina residents are technically responsible for paying "use tax" — which is the same rate as sales tax — when they file their state income tax return. In practice, most individuals do not report this, but the obligation exists.

How to verify the tax on your receipt

Your receipt should show the subtotal, the tax amount, and the total. You can verify the math by multiplying the subtotal by your local combined rate. For example, if you buy something for $100 in a county with a 7% combined rate, the tax should be $7.

If the tax seems wrong, check that the merchant applied the correct county rate. Tax rates can change, and some merchants use outdated rates by mistake. If you believe you were overcharged, contact the merchant first. If the problem persists, you can report it to the North Carolina Department of Revenue.

Frequently Asked Questions

Do I pay sales tax on groceries?

No. Unprepared food you buy to cook at home — produce, meat, dairy, bread, canned goods — is exempt from sales tax in North Carolina. However, prepared food, restaurant meals, and food from a deli counter are taxed. If you are unsure whether something counts as prepared, the rule is whether it is ready to eat without further cooking.

Is clothing taxed in North Carolina?

Clothing is exempt from sales tax, but accessories are not. Shirts, pants, shoes, and coats are not taxed. Belts, hats, scarves, jewelry, and sunglasses are taxed. Clothing alterations are also taxed because they are a service.

What county rate applies if I buy something online?

The rate depends on where the seller ships the item or where they are located. If the seller has a warehouse or office in North Carolina, they collect tax based on the delivery address. If they are out of state, they may collect based on their own location or may not collect at all — in which case you may owe use tax when you file your state return.

Are prescription medications taxed?

No. Prescription medications are exempt from sales tax in North Carolina. Over-the-counter medications like pain relievers and cold medicine are also exempt. However, vitamins, supplements, and health and beauty products are taxed.

Do I pay sales tax on services like haircuts or car repairs?

The service labor itself is not taxed. However, if the business charges you separately for products — like shampoo at a salon or parts at a repair shop — those products are taxed. Ask your service provider to itemize labor and materials if you want to see what is and is not taxed.