How North Carolina Sales Tax Works
North Carolina's state government imposes a 4.75% sales tax on most retail purchases. Counties, cities, and special districts can layer additional local sales tax on top — pushing combined rates to a population-weighted average of 7.00% statewide.
North Carolina applies a uniform 2% local sales tax to groceries even though they are exempt from the state portion — a partial exemption design used in only a few states.
Groceries in North Carolina
North Carolina exempts unprepared groceries from the state sales tax; a 2% local sales tax still applies to food in most counties.
How North Carolina Compares to Neighboring States
Sales tax on a $1,000.00 purchase in North Carolina versus neighboring states, using each state's average combined rate (state + local):
| State | State Rate | Combined Rate | Tax on $1,000 | vs. North Carolina |
|---|---|---|---|---|
| North Carolina (here) | 4.75% | 7.00% | $70.00 | — |
| Virginia | 4.30% | 5.77% | $57.70 | -$12.30 |
| Tennessee | 7.00% | 9.55% | $95.50 | +$25.50 |
| Georgia | 4.00% | 7.40% | $74.00 | +$4.00 |
| South Carolina | 6.00% | 7.50% | $75.00 | +$5.00 |
A negative "vs." figure means a lower sales tax bill on the same purchase. Specific addresses can vary materially from the state-wide average.
Frequently Asked Questions
What is the North Carolina sales tax rate for 2026?
North Carolina's state sales tax rate is 4.75% for 2026. When combined with the average local sales tax of 2.25%, most North Carolina residents pay a typical combined rate of 7.00%.
How much sales tax will I pay on a $100 purchase in North Carolina?
On a $100 purchase, expect approximately $4.75 in state sales tax, or about $7.00 including average local sales tax (combined 7.00%). Total cost: roughly $107.00.
Are groceries taxed in North Carolina?
North Carolina exempts unprepared groceries from the state sales tax; a 2% local sales tax still applies to food in most counties.
Is sales tax calculated before or after discounts in North Carolina?
North Carolina follows the standard rule used by virtually all states: sales tax is calculated on the final discounted price, not the original price. If a $200 item is on sale for $150, you pay sales tax on $150. Manufacturer coupons can be treated differently in some states.
How is this North Carolina sales tax estimate calculated?
The calculator applies North Carolina's 4.75% state sales tax rate plus whatever local rate you enter (city + county + special districts). The default Local Rate is 0%; click a city in the table above to fill in its local portion, or look up your specific address with North Carolina's Department of Revenue tool.