North Carolina Sales Tax
Calculator
Calculate North Carolina sales tax instantly for any city. Enter any amount to see the exact tax and total including county and transit taxes.
About North Carolina Sales Tax
CATS Transit (Mecklenburg)
Businesses in this district charge an additional tax, bringing the total rate to NaN% instead of the standard 7.250%.
North Carolina Sales Tax Rates by City
North Carolina has a state sales tax rate of 4.750% plus a uniform 2% county tax (total 6.75%). Some counties add optional transit taxes of 0.25% to 0.5%, bringing combined rates to 7% or 7.25% in certain areas.
Charlotte
Mecklenburg County
Raleigh
Wake County
Greensboro
Guilford County
Winston-Salem
Forsyth County
Fayetteville
Cumberland County
Cary
Wake County
Wilmington
New Hanover County
High Point
Guilford County
Concord
Cabarrus County
Greenville
Pitt County
City | County | Standard Rate | Special District | Population |
|---|---|---|---|---|
| Charlotte | Mecklenburg | 7.250% | Special District | 943,476 |
| Raleigh | Wake | 7.250% | Special District | 499,825 |
| Greensboro | Guilford | 6.750% | Standard Rate | 307,381 |
| Winston-Salem | Forsyth | 7.000% | Standard Rate | 255,769 |
| Fayetteville | Cumberland | 7.000% | Special District | 209,496 |
| Cary | Wake | 7.250% | Special District | 182,659 |
| Wilmington | New Hanover | 7.000% | Standard Rate | 125,284 |
| High Point | Guilford | 6.750% | Standard Rate | 118,601 |
| Concord | Cabarrus | 7.000% | Standard Rate | 112,395 |
| Greenville | Pitt | 7.000% | Standard Rate | 95,138 |
| Asheville | Buncombe | 7.000% | Standard Rate | 94,992 |
| Gastonia | Gaston | 7.000% | Standard Rate | 85,535 |
| Apex | Wake | 7.250% | Special District | 75,977 |
| Huntersville | Mecklenburg | 7.250% | Special District | 67,087 |
| Chapel Hill | Orange | 7.500% | Special District | 64,028 |
| Burlington | Alamance | 6.750% | Standard Rate | 61,365 |
| Kannapolis | Cabarrus | 7.000% | Standard Rate | 60,521 |
| Wake Forest | Wake | 7.250% | Special District | 56,764 |
| Rocky Mount | Nash | 6.750% | Standard Rate | 54,541 |
| Mooresville | Iredell | 6.750% | Standard Rate | 52,884 |
| Holly Springs | Wake | 7.250% | Special District | 48,674 |
| Wilson | Wilson | 6.750% | Standard Rate | 48,579 |
| Fuquay-Varina | Wake | 7.250% | Special District | 46,317 |
| Hickory | Catawba | 7.000% | Standard Rate | 45,081 |
| Indian Trail | Union | 6.750% | Standard Rate | 43,867 |
| Monroe | Union | 6.750% | Standard Rate | 40,054 |
| Garner | Wake | 7.250% | Special District | 39,345 |
| Salisbury | Rowan | 7.000% | Standard Rate | 36,579 |
| Durham | Durham | 7.500% | Special District | 30,187 |
| Jacksonville | Onslow | 7.000% | Standard Rate | 7,084 |
Note: Total rates include the 4.750% state rate plus 2% county tax. Transit taxes apply in special districts.
How to Calculate Sales Tax in North Carolina
Reverse Calculation
Know the total in Charlotte? Divide by 1.0675 to find the pre-tax price. Example: $106.75 ÷ 1.0675 = $100.00
What's Taxed?
Understanding North Carolina's Sales Tax Structure
Uniform County Rate
All 100 counties in NC have the same 2% county sales tax
Every county in North Carolina charges exactly 2% local tax on top of the 4.75% state rate, making a uniform minimum of 6.75%.
Some counties add 0.25% to 0.5% for public transit (Mecklenburg, Wake, Durham, and Orange counties).
Food for home consumption is taxed at only 2% (not the full combined rate), making groceries more affordable.
Highway Use Tax
Vehicles have a separate 3% tax instead of sales tax
- • Vehicle Purchases: 3% Highway Use Tax (capped at $2,000) applies instead of the general sales tax
- • Groceries: Food for home consumption taxed at reduced 2% rate
- • Prescription Drugs: Completely exempt from sales tax
- • Manufacturing Equipment: Exempt to encourage industrial development
- • Prepared Foods: Restaurant meals and prepared foods taxed at full rate (6.75%+)
Note: North Carolina's uniform structure makes it easy to predict rates—nearly all purchases are either 6.75% or 7% depending on the county, with groceries always at 2%.
Transit Taxes: NC's Voter-Approved Transportation Revolution
Unlike most states where sales tax rates are set by legislators, North Carolina allows counties to put transit taxes directly to voters. Four counties have successfully passed voter-approved transit taxes ranging from 0.25% to 0.5%, generating hundreds of millions annually for public transportation infrastructure.
Wake County (Raleigh/Cary)
Funds Wake County Transit Plan including bus rapid transit, commuter rail, and expanded GoRaleigh services.
Mecklenburg County (Charlotte)
Funds CATS expansion including LYNX Silver Line extension and enhanced bus services throughout Charlotte metro.
Durham & Orange Counties
Joint transit authority (GoTriangle) connecting Durham, Chapel Hill, and Research Triangle Park with regional transit.
Why Voter Approval Matters
- • Democratic Process: Residents directly decide if they want higher taxes for better transit
- • Dedicated Funding: Revenue can only be used for transportation—not general budget
- • Regional Growth: These counties represent NC's fastest-growing metro areas with urgent transit needs
Combined Impact: $150M+ Annually
Together, these four counties generate over $150 million per year from voter-approved transit taxes—a unique funding model that gives residents direct control over transportation infrastructure investment. This approach has proven effective in NC's growing Research Triangle and Charlotte metro regions, where traffic congestion demands expanded public transit options.
The 2009 Medicaid Swap: NC's Unique Tax Restructuring
In 2009, North Carolina executed a historic Medicaid funding swap that fundamentally changed how the state and counties share healthcare costs. This unique restructuring shifted Medicaid expenses from counties to the state in exchange for eliminating county-level sales tax revenue—a trade-off that still shapes NC's tax structure today.
Old System
- ✕ Counties paid portion of Medicaid costs
- ✕ Counties received sales tax under Article 44
- ✕ Unpredictable healthcare costs strained county budgets
The Swap
New System
- ✓ State covers 100% of Medicaid
- ✓ Counties freed from unpredictable healthcare inflation
- ✓ Budget predictability for local governments
What Was Article 44?
Article 44 was a portion of the state sales tax that was redistributed to counties based on their Medicaid enrollment and costs. When the swap happened, Article 44 was completely repealed—counties no longer receive this revenue, but they also no longer pay any Medicaid expenses.
The state guaranteed each county would save at least $500,000 annually from this swap. In practice, most counties saved millions as Medicaid costs continued to rise faster than sales tax revenue would have grown.
Why It Mattered for Taxpayers
While the swap was revenue-neutral for the state (Medicaid costs roughly equaled Article 44 revenue), it protected county property taxpayers from future Medicaid cost inflation—a major concern during the 2008-2009 recession when healthcare costs were spiking.
Unique in the Nation
North Carolina's 2009 Medicaid swap was unique in US history—no other state had successfully executed such a comprehensive exchange of healthcare responsibilities for sales tax revenue at the state-county level.
NC's Complex Multi-Article Tax System Explained
Unlike states with simple sales tax codes, North Carolina's sales and use tax is divided into multiple "Articles" under Chapter 105 of the NC General Statutes. Each Article serves a different purpose and distributes revenue differently, creating a complex system that most taxpayers never see.
Base 4.75% state sales tax—primary revenue source
Uniform 2% county tax with per capita redistribution
Optional 0.25-0.5% voter-approved transit funding
Land transfer tax and specialized levies
Electricity sales tax (combined 7%)
Article 40's Unique Per Capita Redistribution
Article 40 (the uniform 2% county tax) has a unique redistribution formula: revenue isn't kept entirely by the collecting county. Instead, a portion is redistributed on a per capita basis across all NC counties.
This means wealthy retail counties (like Mecklenburg with Charlotte's shopping) subsidize rural counties that have fewer stores but equal population. It's a progressive system designed to ensure all NC counties have adequate sales tax revenue regardless of their commercial base.
Why Multiple Articles?
The multi-article system allows NC to track different revenue streams separately, apply different distribution formulas, and give counties flexibility (like opt-in transit taxes under Article 42) while maintaining statewide uniformity in base rates.
Impact on Businesses
Retailers must track which Article each tax falls under for proper remittance to the NC Department of Revenue. Fortunately, point-of-sale systems handle this automatically—but it's why NC's tax compliance is more complex than simpler state systems.
Groceries, Restaurants, and the 2% Local Food Tax
North Carolina has a unique two-tier food tax system that distinguishes between groceries and prepared foods. While some states fully exempt groceries, NC taxes them at a reduced rate—but the rules get complicated when it comes to restaurant meals and prepared foods.
Groceries for Home Consumption
- • Unprepared food for home cooking
- • Fresh fruits, vegetables, meat, dairy
- • Packaged grocery items
- • Frozen foods (not meals)
Tax breakdown: 2% county tax only—the 4.75% state rate is waived for qualifying groceries
Prepared Foods & Restaurant Meals
- • Restaurant meals (dine-in or takeout)
- • Hot prepared foods (grocery deli, etc.)
- • Ready-to-eat meals
- • Food sold with utensils
Tax breakdown: 4.75% state + 2% county + any local transit taxes (0.25-0.5%)
Optional 1% Prepared Food & Beverage Tax (Meals Tax)
Four NC counties have an additional 1% local tax specifically on prepared meals and beverages sold by restaurants:
This means restaurant meals in Raleigh or Charlotte can reach 8.75% total tax (4.75% state + 2% county + 0.5% transit + 1% meals tax).
Why Tax Groceries at All?
The 2% grocery tax is actually a county revenue compromise. Since all NC counties must charge exactly 2% local tax on everything, groceries can't be fully exempt without creating holes in county budgets. The reduced rate balances affordability with fiscal necessity.
Gray Areas: Hot Food vs. Cold
Temperature matters: A cold rotisserie chicken from the grocery store (2% rate) becomes taxable at full rate if sold hot. This creates complexity for grocery store delis and bakeries, where tax rates depend on how food is prepared and served.
Research Triangle Tech Incentives: Data Center Tax Breaks
As home to the Research Triangle Park—one of the largest tech hubs in the US—North Carolina offers aggressive sales tax exemptions for qualifying data centers. These incentives have attracted billions in tech infrastructure investment from companies like Apple, Google, and Facebook.
$75 Million Investment Threshold
- ✓ $75M+ capital investment over 5 years
- ✓ 20+ new jobs at qualifying facility
- ✓ Must be a qualifying data center under NCGS §105-164.3
- • Sales tax exemption on servers & computer equipment
- • Exemption on electricity for data center operations
- • Exemption on cooling & HVAC systems
- • Exemption on software and maintenance contracts
$250 Million Investment Threshold
- ✓ $250M+ capital investment over 5 years
- ✓ 35+ new jobs at qualifying facility
- ✓ Meet wage standards (typically 110% of county average)
- • All Tier 1 exemptions (equipment, electricity, software)
- • Property tax abatements (negotiated with county)
- • Expedited permit processing
- • Additional utility rate incentives
Real-World Impact: Billions in Saved Taxes
A single mega data center investing $1 billion over 5 years could save $67.5 million in state and local sales tax on equipment purchases alone (assuming 6.75% average rate). When electricity exemptions are included, total savings often exceed $100 million over 10 years.
Major examples include Apple's $1B+ data center in Maiden, NC and Google's facilities in Lenoir and Caldwell County—both benefiting from NC's aggressive tech incentives.
Why NC is Attractive
Research Triangle location, fiber connectivity, low electricity costs, and these tax exemptions make NC a top-5 state for data center development in the Eastern US.
Rural County Benefits
Many data centers locate in rural counties (cheaper land, lower wages) but create hundreds of construction jobs and ongoing high-wage tech positions, transforming local economies.
Qualification Process
Companies must apply to the NC Department of Commerce, demonstrate they meet thresholds, and receive formal certification before exemptions apply—typically a 60-90 day process.
How North Carolina Compares to Neighboring States
Here's how North Carolina's sales tax stacks up against nearby states
local tax
local tax
local tax
local tax
North Carolina's uniform 6.75% minimum makes rates very predictable, sitting in the middle range among neighboring states. Lower than Tennessee but higher than Virginia and Georgia.
Frequently Asked Questions
North Carolina Sales Tax Rate History
North Carolina's sales tax has been in effect since 1957:
| Year | Event | Notes |
|---|---|---|
| Current | 4.75% state + 2% county | 6.75% minimum in all counties |
| 2020 | Mecklenburg transit tax added | 0.25% CATS transit tax (Charlotte area) |
| 2013 | Wake County transit tax added | 0.5% transit tax (Raleigh/Cary area) |
| 2011 | Rate increased to 4.75% | Increased from 4.5% (effective July 1, 2011) |
| 2009 | Rate increased to 4.5% | Temporary increase during recession |
| 2001 | Rate reduced to 4% | Down from 4.5% |
| 1971 | 2% county tax enacted | Uniform county tax established |
| 1957 | Sales tax enacted | Initial rate of 3% |
Key insight: North Carolina's uniform county rate system (2% in every county since 1971) makes the state's sales tax very predictable. The state rate has been 4.75% since 2011, with only selective transit taxes varying by location.
Related Calculators & Resources
Disclaimer: This calculator provides estimates based on current North Carolina sales tax rates as of November 2025. Tax rates are subject to change by state and local legislation. For official tax rates and specific guidance on your situation, please consult the North Carolina Department of Revenue or a qualified tax professional.
Not Legal or Tax Advice: The information provided on this page is for informational purposes only and should not be construed as legal or tax advice. Always verify current rates before making large purchases or business decisions.
Sources: North Carolina Department of Revenue, NCGS Chapter 105, Article 5 (Sales and Use Tax)
Last updated: November 18, 2025