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North Carolina Sales Tax

On this page you will find handy sales and use tax information about North Carolina.

How to use this page:

We’ve pulled in the information from all our Charts for a consolidated view by state.  Here you can see the sales tax rates and if the state has remote seller nexus rules. You can also see any sales tax holidays or amnesty programs that may exist, though these do not apply to all states.

Below the chart you can find any News & Tip item we have published that relates to North Carolina that you can filter by topic. This will help you get informed on current and past legislation that has passed in the state.

State Sales Tax Rates
State Rate

4.750% The state has reduced rates for sales of certain types of items.
Range of Local Rates

2% – 3%
Local Rates Apply to Use Tax

Yes
Remote Seller Nexus Rules
CLICK-THROUGH NEXUS

8/7/2009
ECONOMIC NEXUS

11/1/2018 – see state notice
MARKETPLACE NEXUS

2/1/2020
Sales Tax Amnesty
Status

Inactive

Amnesty Filing Dates

April 23, 2010 - June 30, 2010

Go to North Carolina Amnesty Page
AMNESTY INCLUSION PERIODS

Tax, penalties or interest for periods prior to September 1, 2010.

TAX TYPES AND CONDITIONS

Business Sales and Use Tax, Business must register to collect and remit sales and use tax for 4 years, beginning September 1, 2010.
AMNESTY BENEFITS

Tax, penalties or interest for periods prior to September 1, 2010 waived.

Administration Information
Streamlined Sales Tax Status

Full Member
NUMBER OF TAXING AUTHORITIES

106 Sales Tax Jurisdictions
HOME RULE AUTHORITIES

N/A
Sales Tax Sourcing (Intrastate)

Destination
Sales Tax Return Due Date

Monthly filers: 20th of month following reporting period. Quarterly filers: last day of month following quarter.
Exemption Information
RESALE CERTIFICATE

North Carolina Resale Certificate
TYPES OF EXEMPTIONS

Product types of exemptions: prescription medications, some types of groceries, some medical devices, and machinery and chemicals which are used in research and development; mill machinery, machinery parts and manufacturing accessories

 

Entity types of exemptions: qualifying farmers or conditional farmers; commercial fishermen; loggers; veterinarians; accepted wastewater dispersal system; state agencies; U.S. government

 

North Carolina Exemption Certificate Forms
History & Fun Facts
HISTORY

  • North Carolina originally imposed sales tax in 1933 to provide emergency revenue for public schools in place of property taxes. The sales and use tax currently used was enacted in 1957.
  • North Carolina enacted legislation in 2001 to conform its laws to the Streamlined Sales and Use Tax Agreement and furthered its commitment to conformity in 2005.
FUN FACTS
  • North Carolina imposes a white goods disposal tax, applicable to “white goods” such as refrigerators, ranges, water heaters, freezers, unit air conditioners, etc., effective January 1, 2015. A real property contractor must pay a $3.00 white goods disposal tax at the time of purchase of a new white good to a retailer engaged in business in North Carolina or accrue and pay the tax on a new white good purchased outside North Carolina for storage, use, or consumption in the state.

Key Sales Tax Updates Affecting the Southeastern United States

Picture this: an evolving sales tax landscape throughout the United States where sales tax rules resemble a puzzle, and being up to date on the Southeast region is the missing piece for compliance success.

North Carolina Online Retailer Files Complaint Against Accounting Firm Over Failure to Advise on Wayfair Nexus Implications

North Carolina-based online retailer lodged a complaint in North Carolina Business Court against their tax advisory firm.

Taxpayer Doesn’t Meet Definition of Marketplace Facilitator in North Carolina

A North Carolina taxpayer who is an affiliate of original equipment manufacturers (OEMs) does not meet the definition of a “marketplace facilitator” per a private letter ruling from the North Carolina Department of Revenue.

North Carolina Issues Guidance on Dry-Cleaning Solvent Tax

North Carolina imposes a privilege tax on dry-cleaning solvent retailers at a flat rate for each gallon of dry-cleaning solvent sold to a dry-cleaning facility. An excise tax is imposed on dry-cleaning solvent purchased for storage, use, or consumption by a dry-cleaning facility in North Carolina.

North Carolina Supreme Court Rules Against Sales and Use Tax Distinction in Wisconsin Taxpayer’s Appeal

The Supreme Court of North Carolina ruled to uphold a sales tax assessment against a Wisconsin based printer, rejecting the taxpayer\’s argument that they could not be subject to sales tax under the U.S. Supreme Court decision McLeod v. J.E. Dilworth Co.

Streamlined Sales Tax Member States Submit New Certificates of Compliance and Update Tax Administration and Taxability Matrices for 2022

All Streamlined Sales Tax Agreement member states have now submitted their 2022 updated certificates of compliance, tax administration practice matrices, and updated library of definitions.

North Carolina ruling on taxation of manufacturing machinery and equipment offers a reminder for taxpayers in all states

In a decision impacting manufacturers in North Carolina, the state’s Department of Revenue, Sales and Use Tax Division explained in a private letter ruling request that the purchasers of machinery and equipment for a manufacturing plant are not exempt from state sales and use tax.

State Notices & Resources for Remote Sellers

Use this state by state guide to find each state\’s initial guidance on how to proceed post-Wayfair, state resources such as FAQs, and any state activity such as going through a legislative process that impacts remote sellers.

Economic Nexus State by State Chart

Key information such as effective dates, thresholds, and includable sales for out-of-state sellers making sales into states that have enacted economic nexus legislation both before and after the South Dakota v. Wayfair Supreme Court decision.

North Carolina Imposes Economic Nexus Threshold

Remote sellers exceeding North Carolina’s economic nexus threshold must register and collect tax by November 1, 2018.

North Carolina Provides Guidance About Taxability of Certain Digital Property to Taxpayer

A North Carolina company provides subscriptions to industry specific information in their cloud which customers can access by paying for a subscription.

North Carolina Rules Subscription Fees for SaaS Not Subject to Sales Tax

In response to a taxpayer request, the North Carolina Department of Revenue completed a private letter ruling regarding sales tax payments on subscription fees for software as a service (SaaS).

North Carolina Letter Ruling Addresses Taxation of Cloud-Based Software Application Access

The North Carolina Department of Revenue issued a private letter ruling to address the taxability of a taxpayer’s free application that is part of its web-based services provided via a software as a service (SaaS) model.

IT Service Agreement Taxable as Service Contract in North Carolina

An IT provider’s service agreements were subject to North Carolina sales and use tax since the agreements met the definition of a taxable service contract.

North Carolina Removes Economic Nexus Threshold for Marketplace Nexus Provisions

North Carolina enacted legislation that removes the nexus economic nexus threshold for purposes of the state’s marketplace nexus provisions.

North Carolina Enacts Exemptions for Certain Digital Goods

Effective retroactively to October 1, 2019, North Carolina has enacted sales and use tax exemptions for certain digital goods.

North Carolina Expands Large Fulfillment Facility Exemption

Effective July 1, 2020, North Carolina has expanded its large fulfillment facility exemption.

North Carolina Issues Marketplace Facilitator Guidance for Auctioneers

Effective February 1, 2020, an auctioneer that meets the definition of a marketplace facilitator and meets either of the state’s marketplace nexus thresholds is required to collect and remit North Carolina sales and use tax.

Sellers May Be Contacted About Other Taxes Under New Streamlined Sales Tax Governing Board Rule

Sellers registered through SSTP may be contacted about other taxes in the member states where they register with the SSTP.

North Carolina Enacts Marketplace Nexus Legislation

Effective February 1, 2020, North Carolina has enacted marketplace nexus legislation.

North Carolina Expands Applicability of Sales Tax to Digital Property

Effective October 1, 2019, North Carolina enacted legislation that expands the applicability of sales tax to digital property.

North Carolina Codifies Economic Nexus Provisions

North Carolina has enacted legislation that codifies economic provisions that the state previously issued in a policy directive.

Retailers May Recover North Carolina Tax Paid on Certain Purchases Subsequently Resold Without Being Used

Effective June 12, 2018, retailers may recover North Carolina sales and use tax paid on property or services if the retailer subsequently resells the property or services at retail without having used them.

House Introduces Online Sales Simplicity and Small Business Relief Act of 2018

On September 13, 2018, Rep. Jim Sensenbrenner (R-WI) and additional U.S. House members introduced the Online Sales Simplicity and Small Business Relief Act of 2018.