North Carolina Sales Tax Rate & Rules (2026)

North Carolina levies a 4.75% state sales and use tax. Counties add 2% to 3.5% (including transit taxes), so combined rates run 6.75% to 8.25%. North Carolina is destination-based.

To find the combined rate for a specific address, use our US sales tax calculator.

North Carolina's consumer use tax is due on items bought, leased or rented, inside or outside the state, for use in North Carolina when no sales tax was paid at purchase. It covers tangible goods, certain digital property and taxable services [11]. The rate is the same as sales tax: the 4.75% state rate plus the local rate where the item is used [11].

Individuals report consumer use tax on their income tax return, Form D-400, or on Form E-554 if they don't file a D-400 [11]. Businesses report it on the sales and use tax return, Form E-500, and a business that isn't registered for sales and use tax registers first [11].

North Carolina economic nexus applies once your gross sales sourced to the state exceed $100,000 in the current or prior calendar year. The 200-transaction threshold was removed effective 1 July 2024, so the dollar amount is the only economic trigger. Physical presence creates nexus immediately.

North Carolina treats a marketplace facilitator engaged in business in the state as the retailer of each sale it facilitates, requiring it to collect and remit sales and use tax — including applicable local, transit, and county taxes — once it meets the state's $100,000 threshold. A marketplace seller selling only through a facilitator that is meeting its collection obligations is not separately required to collect tax on those facilitated sales. The facilitator must furnish each marketplace seller its monthly sales and transaction data, and can be relieved of assessment for an incorrect tax amount only by proving the error came from inaccurate seller-supplied information and that it had no specific written Department advice on the transaction.[10]

North Carolina assigns monthly or quarterly filing based on liability. Monthly returns are due the 20th of the month following the reporting period, and quarterly returns are due the last day of January, April, July and October. Large monthly filers may owe a prepayment toward the current month's tax. For the portal, return, and step-by-step, see our guide to filing North Carolina sales tax online.

North Carolina exempts prescription drugs and many medical devices. Groceries are exempt from the state rate but still subject to a 2% local tax. SaaS and remote-access software are not taxable when the customer never receives a copy of the software.

North Carolina buyers give the seller Form E-595E (Streamlined Certificate of Exemption) to buy for resale or under another exemption; it is kept by the seller rather than sent to the Department [6]. A blanket certificate stays valid while the information remains accurate [6].

For the official form, multistate certificate rules and expiry, see the North Carolina resale certificate guide.

Late filing carries a penalty of 5% of the tax due per month, up to 25%, with a $5 minimum. Late payment adds a 5% penalty, plus interest from the due date. Our North Carolina filing guide lists late filing penalties, interest, and what to do if you missed a return.

You must request a departmental review within 45 days of a proposed assessment or refund denial, using Form NC-242 [7]. If unresolved, you can file a petition for a contested case with the Office of Administrative Hearings [7].

• [1] North Carolina DOR — Current Sales and Use Tax Rates (4.75% state)

• [2] North Carolina DOR — Remote Sales (economic nexus, 200-transaction repeal)

• [3] North Carolina DOR — SUPLR 2020-0005 (cloud services not taxable)

• [4] North Carolina DOR — Food (state exempt, 2% local food tax)

• [5] North Carolina DOR — Certain Digital Property (taxable)

• [6] North Carolina DOR — Form E-595E (Certificate of Exemption)

• [7] North Carolina DOR — Objection and Departmental Review (45 days)

• [8] North Carolina DOR — Online Business Registration

• [9] North Carolina DOR — Sales Tax Holiday Repealed (2014)

• [10] North Carolina General Statutes § 105-164.4J — Marketplace facilitators and marketplace sellers

• [11] North Carolina DOR — Consumer Use Tax

Verified July 2026 against North Carolina Department of Revenue published guidance.

• Is SaaS Taxable in North Carolina? A 2026 Guide for E-commerce Businesses
• North Carolina Sales and Use Tax Exemption: A Guide for Businesses
• Understanding North Carolina Sales Tax on Clothing: A Guide for Businesses