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

Yes

CLICK-THROUGH NEXUS

8/7/2009

ECONOMIC NEXUS

11/1/2018see state notice

MARKETPLACE NEXUS

2/1/2020

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
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.

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.

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.

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.

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.

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.

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.

North Carolina Amends Public Utility Definitions

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

Multistate Tax Commission Updates Its Uniform Sales & Use Tax Exemption Certificate

The Multistate Tax Commission (MTC) revised its Multijurisdictional Uniform Sales & Use Tax Exemption/Resale Certificate on January 22, 2018 to reflect two state changes.

Record Number of Sellers Participate in 2017 MTC Amnesty Program

The volume of applicants for the 2017 online marketplace seller tax amnesty program overwhelmed the Multistate Tax Commission.

North Carolina Issues Letter Ruling on Taxability of Hotel Stays

Hotel stays over 90 days in North Carolina are exempt from state sales tax, even if a guest checks out and immediately checks back during the period to take advantage of a discount.

North Carolina Reminder: Tax Exemption for Large Fulfillment Facilities

NC large fulfillment facilities exemption enacted 01/01/17. More..

Multistate Tax Commission Announces Tax Amnesty Program for Online Sellers

The MTC organized a tax amnesty program for online sellers, running from August 17 to November 1, 2017. The voluntary disclosure program allowed sellers to start remitting sales tax on future sales without penalty or liability for unpaid, prior accumulated sales tax in 25 participating states.

No Regulation Without Representation Act of 2017 Introduced

Under the proposed House bill, a state may tax or regulate a person’s activity in interstate commerce only when the person is physically present in the state during the period in which the tax or regulation is imposed.

Congress Introduces Marketplace Fairness Act of 2017 and Remote Transactions Parity Act of 2017

Introduced on April 27, 2017, the Marketplace Fairness Act of 2017, if enacted, would authorize states meeting certain requirements to require remote sellers that do not meet a small seller exception to collect their state and local sales and use taxes.

North Carolina Enacts Exemption for Certain Products Made of Recycled Materials

Effective October 1, 2016, North Carolina enacted a sales and use tax exemption for sales of products made of more than 75% by weight of recycled materials when the products are sold for use in an accepted wastewater dispersal system.

Online Sales Simplification Act of 2016 Discussion Draft is Introduced

The proposed legislation would implement a “hybrid origin” approach for remote sales. States could impose sales tax on remote sales if the origin state participates in a clearinghouse.

No Regulation Without Representation Act of 2016 Introduced

Taking the opposite approach of the Marketplace Fairness Act and Remote Transactions Parity Act, the proposed bill would limit the ability of states to require remote sellers to collect use tax. However, the bill failed to pass.