North Carolina Sales Tax Calculator

How North Carolina rates add up: 4.75% state plus county and transit tax

North Carolina’s general state sales tax rate is 4.75%. Every county adds a local rate, and some also add a half-cent transit tax. Combined rates range from 6.75% to 8.25%, and the state average is about 7.1%.

The biggest recent change came on July 1, 2026, when Mecklenburg County added another 1% local sales and use tax. Charlotte’s rate rose to 8.25%, now the highest in the state. Raleigh, in Wake County, is at 7.25%. Rates are set by county, so every town in a county charges the same rate. The NCDOR publishes the current list of county rates and their effective dates.

Groceries are taxed at 2%, not zero

North Carolina does not exempt groceries completely. Qualifying food is exempt from the state rate but taxed at a flat 2% local rate everywhere in the state, whatever the county’s general rate. Non-qualifying food (candy, soft drinks, prepared food, dietary supplements, vending machine sales and prepaid meal plans) is taxed at the full general rate.

Worked example in Charlotte: $150 of groceries plus $10 of candy and soda. The groceries carry $3.00 (2%). The candy and soda carry $0.83 at 8.25%. Total tax: $3.83. If the whole $160 had been taxed at the full rate, the tax would have been $13.20. That is why the calculator’s single combined rate overstates the tax on a grocery receipt.

Other items with their own rates

Some purchases do not follow the county rate. North Carolina applies a 7% combined general rate to telecommunications, video programming such as cable and streaming TV, spirituous liquor, electricity and piped natural gas, so these cost the same everywhere in the state. Manufactured and modular homes and aircraft are taxed at the state rate only. Boats and some other items have their own rates or caps listed by NCDOR.

Prescription drugs are exempt from both state and local sales tax. Clothing, school supplies and computers are taxed at the full combined rate. North Carolina does not currently hold a sales tax holiday.

Cars: the 3% Highway Use Tax instead of sales tax

You do not pay sales tax on a car in North Carolina. You pay a one-time 3% Highway Use Tax (HUT) when the title is transferred. North Carolina replaced its old 2% sales tax on vehicles with the HUT in 1989. For a dealer purchase, the HUT is charged on the price minus any trade-in, and the money goes to the state’s Highway Trust Fund.

Worked example: a $35,000 car with a $10,000 trade-in owes $750.00 of HUT. If the same car were taxed at Charlotte’s 8.25% sales tax rate on the full price, the bill would be $2,887.50. NCDOT says the HUT is capped at $250 for vehicles brought in by people moving to North Carolina, and at $2,000 for commercial and recreational vehicles such as RVs.

A Raleigh receipt with three different rates

North Carolina receipts can carry up to three rates at once. Here is a Wake County trip at 7.25%: $95 of groceries, $22 of hot prepared food and $40 of school supplies.

• Qualifying groceries at the 2% food rate: $1.90.
• Prepared food at the full 7.25%: $1.60.
• School supplies at the full 7.25%: $2.90.
• Total: $6.40.

North Carolina compared with nearby states

North Carolina’s state rate is one of the lowest in the Southeast, and even with local taxes its average is below Tennessee’s. Groceries are taxed at 2% in North Carolina, which still matters when comparing household costs with Virginia or South Carolina.

Use tax on out-of-state and online purchases

If you buy something taxable for use in North Carolina and the seller does not charge North Carolina tax, you owe use tax at the state rate plus your county’s rate. Individuals report it on the consumer use tax line of Form D-400, the state income tax return. Most large online retailers now collect North Carolina tax. Use tax mainly affects purchases from small out-of-state sellers and items bought in states with lower or no sales tax.

Example: a $900 bike bought in Oregon (no sales tax) and ridden in Raleigh owes $65.25 at 7.25%.