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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.

North Carolina Changes Cutoff Time for Submitting Electronic Tax Payments

North Carolina changed the cutoff time for submitting electronic state tax payments, effective 06/14/15. More…

House Introduces Remote Transactions Parity Act of 2015

U.S. House of Representatives introduced the Remote Transactions Parity Act of 2015 on 06/15/15. More…

Senate Introduces Marketplace Fairness Act of 2015

On March 10, 2015, a bipartisan group of senators introduced the Marketplace Fairness Act of 2015.

Internet Tax Freedom Act Extended Until October 1, 2015, Permanent Extension Introduced

On December 16, 2014, President Barack Obama signed an act including a provision that extends the Internet Tax Freedom Act until October 1, 2015.

North Carolina Makes Changes to Taxation of Service Contracts

North Carolina has issued a notice regarding changes to the taxation of service contracts.

Internet Tax Freedom Act is Extended through December 11, 2014

President Barack Obama has signed federal legislation extending the Internet Tax Freedom Act through December 11, 2014.

North Carolina Launches Trust Tax Recovery Program

On February 5, 2014, North Carolina launched the Trust Tax Recovery Program, which offers amnesty to qualifying companies owing collected but unpaid trust taxes.

North Carolina Repeals Annual August Sales Tax Holiday

The North Carolina Department of Revenue has reminded taxpayers that the state’s annual sales tax holiday formerly scheduled in August was repealed by legislation enacted in 2013.

North Carolina Provides Guidance for Sourcing Digital Property

North Carolina has provided guidance regarding the sourcing for certain digital property subject to sales and use tax. The following digital property is subject to tax: an audio work; an audiovisual work; a book, magazine, newspaper, newsletter, report, or other…

SST Best Practices Matrix on Deal of the Day Vouchers

The Streamlined Sales and Use Tax (SST) Governing Board has issued a best practices matrix which provides answers to whether the state follows the best practices set forth in the SST Agreement regarding deal-of-the-day vouchers. All SST Member states are…

New Federal Digital Goods and Services Bill Proposed

Representative Lamar Smith (Republican, Texas) has introduced a bill to bar multiple taxes on digital goods and services. Smith had proposed an earlier bill which failed to pass. This bill is a revised version of the earlier bill. The proposed…

North Carolina Offers Incentives for Participating in Small Business Counseling Program

The North Carolina Department of Revenue has announced a new program under which small businesses with outstanding sales and use, personal income withholding, or other trust taxes can qualify for waived fees and penalties and be eligible to enter into…

Federal Government Introduces New Remote Seller Bill

The federal Marketplace Fairness Act of 2013 was introduced in the House of Representatives and the Senate on February 14, 2013.

North Carolina Clarifies Sourcing of Digital Property and Software

The North Carolina Department of Revenue has issued a notice clarifying the sourcing provision applicable to sales of certain digital property and computer software delivered electronically. When the delivery address is unknown and the seller is unable to determine the…

North Carolina Decreases Sales and Use Tax Rate

Effective July 1, 2011, North Carolina’s general sales and use tax rate will decrease to 4.75%. The rate – previously 5.75% – applies to sales and purchases of tangible personal property, certain digital property and certain services. Local tax rates…

North Carolina Electric Membership Corporation Exempt from Sales and Use Tax

A North Carolina electric membership corporation (EMC) was granted a refund of franchise and sales and use taxes paid on sales of electricity as they were deemed exempt under a special act enacted by the North Carolina Legislature over 35…

Amazon Lawsuit Against North Carolina Department of Revenue Settled

A lawsuit filed against the North Carolina Department of Revenue by Amazon.com, LLC has been settled. The lawsuit alleged that an information request issued by the North Carolina Department of Revenue violated the First Amendment as it sought all information…

Internet Transactions Resolution Program Announced in North Carolina

In collaboration with e-commerce retailers, the North Carolina Department of Revenue has developed the Internet Transactions Resolution Program. Participants may resolve their prior tax liability by registering for sales and use tax and agreeing to collect and remit those taxes…

Amazon Challenges North Carolina DOR’s Request for Customer Information

Amazon.com LLC (“Amazon”) has filed a complaint for declaratory relief alleging that its compliance with the North Carolina Department of Revenue’s demand for personally identifiable information about its customers would violate the First Amendment rights of Amazon and its customers.…

North Carolina Provides Guidance Regarding Taxability of Computer Software

The North Carolina Department of Revenue has issued a notice discussing enacted legislation concerning the taxability of computer software. Effective January 1 ,2010, the sale at retail and the use, storage, or consumption of computer software that meets the following…

Purchases of Packaging Used to Secure Yarn is Exempt in North Carolina

A yarn manufacturer’s purchase of packaging material used to deliver yarn to its customers was found exempt from North Carolina sales and use tax. To ship its cones of yarn to customers, the taxpayer uses a “yarn pak” which is…

North Carolina Discusses Additional .25% Rate Increase

The North Carolina Department of Revenue has issued a notice announcing the state sales and use tax rate has been increased from 5.5% to 5.75%, effective October 1, 2009. Local rates, however, decrease from 2.25% to 2% in all counties…

North Carolina Governor Signs Budget that Includes Amazon Provision

Under the provision, a retailer is presumed to engage in business in North Carolina if the retailer has an agreement with a resident under which the resident refers potential customers, usually with a link, to the retailer.

North Carolina Temporarily Increases Sales and Use Tax Rate

North Carolina Governor Bev Perdue has signed a budget that temporarily increases the general state sales and use tax rate from 4.5% to 5.5%. The 1% increase will be applicable to sales made on or after September 1, 2009 and…