North Carolina has one statewide sales and use tax rate, and every county adds its own local tax on top, so the rate on the same purchase differs between Charlotte, Raleigh and a rural county. The change that matters most right now is Mecklenburg County, where an extra 1% took effect on July 1, 2026.
This guide sets out the state rate, how the county and transit rates stack, how groceries and prescription drugs are treated, what use tax is, and a worked comparison of the tax on the same $1,000 purchase at each rate level. Everything comes from the North Carolina Department of Revenue (NCDOR) pages read on 2 November 2026.
NCDOR's county rate table describes the total as the 4.75% state rate plus applicable local and transit rates. Most counties levy a 2.00% county rate; a list of counties levy 2.25%; and Durham, Mecklenburg, Orange and Wake also levy a 0.50% transit rate. Mecklenburg also has the new additional 1.00% county rate.
| Where | Total rate | Components |
|---|---|---|
| Most counties (50 of 100 in NCDOR's table) | 6.75% | 4.75% state + 2.00% county |
| 2.25% counties (46 of 100), such as Buncombe, Cumberland and Forsyth | 7.00% | 4.75% state + 2.25% county |
| Wake | 7.25% | 4.75% state + 2.00% county + 0.50% transit |
| Durham and Orange | 7.50% | 4.75% state + 2.25% county + 0.50% transit |
| Mecklenburg | 8.25% | 4.75% state + 2.00% county + 0.50% transit + 1.00% additional |
The component split is from the Form E-500 instructions and the Mecklenburg notice; the total for each county is from the NCDOR rate table. These rates do not include prepared meal taxes imposed and administered by local jurisdictions. We do not reproduce the county-by-county list because NCDOR updates it; use the NCDOR current rates page for your county.
NCDOR's notice of 2 March 2026 states that Mecklenburg County would levy an additional 1.00% county rate effective July 1, 2026, taking the total general rate from 7.25% to 8.25%. Retailers must collect the new rate on retail sales and leases sourced to Mecklenburg County, and purchasers owe use tax at the new rate if the retailer does not collect it.
The extra 1% does not apply to items with their own specific rate, including qualifying food (2%), electricity, piped natural gas and telecommunications (7%), boats (3%), and aircraft and manufactured and modular homes (4.75%). NCDOR required new returns for periods beginning on or after July 1, 2026. If you are moving to Charlotte, see our Charlotte tax guide.
The table is our arithmetic on NCDOR's total rates for an ordinary taxable item with no special rate. It is an illustration, not an official calculation; the retailer computes the tax on a real receipt at the rate for the county where the sale is sourced.
| Location (our illustration) | Total rate | Tax on $1,000 |
|---|---|---|
| Most counties (2.00% county) | 6.75% | $67.50 |
| 2.25% counties, e.g. Buncombe, Cumberland, Forsyth | 7.00% | $70.00 |
| Wake (2.00% + 0.50% transit) | 7.25% | $72.50 |
| Durham and Orange (2.25% + 0.50% transit) | 7.50% | $75.00 |
| Mecklenburg (2.00% + 0.50% transit + 1.00%) | 8.25% | $82.50 |
Qualifying groceries are different: $100 of qualifying food carries only the 2% local rate, so $2.00 of tax, because the state, transit and other local rates do not apply to qualifying food.
NCDOR defines qualifying food as all food except candy, soft drinks, prepared food (other than bakery items sold without eating utensils by an artisan bakery), dietary supplements, food sold through a vending machine, and prepaid meal plans. Qualifying food is taxed at a 2.00% local rate only. Non-qualifying food is taxed at the general state rate plus the applicable local and transit rates. Food sold under SNAP is among the sales NCDOR lists as exempt from state tax.
NCDOR's Form E-500 instructions list sales of drugs that federal law requires to be dispensed only on prescription, and over-the-counter drugs sold on prescription, as exempt (pet food and animal feed are excluded). The same instructions give the maximum taxable purchase price of a boat as $50,000 and tax manufactured and modular homes on 50% of the sales price.
NCDOR's taxable-items page says the tax applies to tangible personal property (including prewritten computer software), certain digital property such as digital audio works, audiovisual works and books, and specified services. This guide does not list the taxable services or other exemptions, because we did not verify them from a single NCDOR page; use the NCDOR taxable items page for a specific item. We also say nothing here about sales tax holidays.
Consumer use tax is due when you buy, lease or rent items for use in North Carolina and do not pay the applicable sales and use tax at purchase, inside or outside the state. An individual who must file a North Carolina income tax return (Form D-400) reports use tax on non-business purchases on that return, except for boats, aircraft and reduced-rate food. Individuals who do not file Form D-400 use Form E-554, Consumer Use Tax Return. For vehicles, see our North Carolina highway use tax guide.
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