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 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





11/1/2018see state notice





Amnesty Filing Dates

April 23, 2010 - June 30, 2010

Go to North Carolina Amnesty Page

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


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


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

Administration Information
Streamlined Sales Tax Status

Full Member


106 Sales Tax Jurisdictions



Sales Tax Sourcing (Intrastate)


Sales Tax Return Due Date

Monthly filers: 20th of month following reporting period. Quarterly filers: last day of month following quarter.

Exemption Information

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

  • 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.

  • 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.

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.

Economic Nexus State Guide

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.

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.

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.

North Carolina Issues Guidance on Timely Mailing of Tax Returns and Other Documents

The North Carolina Department of Revenue has issued guidance regarding when a mailed North Carolina tax return or other document is timely filed or tax timely paid.

North Carolina Imposes Economic Nexus Threshold

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

Remote Seller Resources

Comprehensive list of resources for remote sellers following the South Dakota v. Wayfair Supreme Court decision – including state notices, videos, articles, training opportunities, and more.

U.S. Supreme Court Issues Decision In South Dakota v. Wayfair

On June 21, 2018, the U.S. Supreme Court issued its decision in the South Dakota v. Wayfair case, ruling in favor of South Dakota and overturning Quill’s physical presence rule.

Photograph Tinting and Coloring Services Subject to North Carolina Sales and Use Tax

Effective September 1, 2018, charges for services to tint or color a consumer\’s tangible or digital photograph are subject to North Carolina sales and use tax as repair, maintenance, and installation services.

Gift Wrap and Gift Wrapping Services Subject to North Carolina Sales and Use Tax

Effective September 1, 2018, charges for gift wrap or gift wrapping services sold at retail are subject to North Carolina sales and use tax.

South Dakota v. Wayfair Analysis & Predictions: Sales Tax Experts Weigh-In

Sales tax experts lend their insight into and predictions for one of the most important U.S. Supreme Court decisions regarding sales tax in decades, South Dakota v. Wayfair.

North Carolina Amends Public Utility Definitions

North Carolina amended its definition of \”public utility\” and “small power producer,” effective July 27, 2017.