Free North Carolina Sales Tax Calculator
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How to Use the North Carolina Sales Tax Calculator
Our North Carolina Sales Tax Calculator is designed to be simple and easy to use. Just follow these steps:
Choose your search method:
- By ZIP Code: Select your ZIP code from the dropdown menu.
- By Tax Region: If you know the specific tax region, choose it from the dropdown menu.
Enter Subtotal: Enter the subtotal of your purchase in the designated field.
Include Special Rate (Optional): Check the box if you want to include any applicable special tax rates in the calculation.
Calculate Tax: Click the “Calculate Tax” button.
View Results: The calculator will display a detailed breakdown of the sales tax, including:
- State tax
- County tax
- City tax
- Special tax (if applicable)
- Total tax
- Total cost (subtotal + total tax)
That’s it! You can now use this information to estimate the total cost of your purchase, including sales tax.
North Carolina Sales Tax Rates by Item Category
North Carolina has a complex sales tax system with different rates applying to various goods and services. Here’s a breakdown of some common items and their respective tax rates:
Items Subject Only to the General 4.75% State Rate (Local and Transit Rates do not Apply)
- Manufactured and Modular Homes: These homes are taxed at the state’s general sales tax rate of 4.75%. This applies to the sale of new manufactured and modular homes.
- Aircraft and Qualified Jet Engines: The sale of aircraft and qualifying jet engines are also subject to the 4.75% state rate.
Items Subject to the 7% Combined General Rate
This rate typically includes the 4.75% state tax plus applicable county and/or city taxes.
- Telecommunications Service and Ancillary Service: This includes services like landline phone service, mobile phone service, and internet access.
- Video Programming Service: This covers cable TV, satellite TV, and streaming services.
- Spirituous Liquor: Sales of liquor are subject to the combined 7% rate.
- Electricity: Residential and commercial electricity consumption is taxed at this rate.
- Piped Natural Gas: Similar to electricity, piped natural gas is taxed at the 7% rate.
- Aviation Gasoline and Jet Fuel: While aircraft and engines are taxed at the lower rate, the fuel used in aviation is subject to the 7% rate.
Items Subject to a Miscellaneous Rate
- Boats: The sales tax rate on boats is 3%, with an additional 2% local sales tax if applicable.
- Food: * Most food items in North Carolina are subject to a reduced state sales tax rate of 2%.
- “Non-qualifying food” which includes prepared foods, soft drinks, and candy, is taxed at the full combined rate (generally 7%).
- Prepaid meal plans are also subject to the full combined rate.
General Sales and Use Tax in North Carolina
North Carolina imposes a general sales and use tax on most tangible personal property. Here’s a breakdown of what that means:
What is Tangible Personal Property?
Tangible personal property is anything that can be perceived by the senses (seen, touched, etc.). This includes items like:
- Clothing
- Electronics
- Furniture
- Vehicles
- Electricity
- Water
- Gas
General Sales Tax
- This tax applies to the sale of tangible personal property within North Carolina.
- The tax rate is a combination of the state’s general rate (4.75%), plus any applicable local sales taxes (county and city). This combined rate is generally around 7%, but it can vary based on location.
Use Tax
- Use tax is essentially the counterpart to sales tax. It applies to purchases made outside of North Carolina, but used or stored within the state.
- This ensures that items purchased outside the state are subject to a similar tax burden as those purchased within North Carolina.
- Use tax is typically due when sales tax was not collected on a taxable purchase.
How to Report and Pay
- Businesses are required to report their sales and use tax collections to the North Carolina Department of Revenue.
- This is done by filing Form E-500, Sales and Use Tax Return, or through the Department’s online filing and payment system.
Understanding Local Sales and Use Tax Rate Increases in North Carolina
This section provides general guidance on how sales and use tax rates are applied when a county in North Carolina increases its local sales and use tax rate. This information is relevant to both retailers and consumers.
Key Terms
- Lower Tax Rate: The tax rate in effect before the increase.
- Higher Tax Rate: The tax rate in effect on or after the increase.
- Effective Date: The date on which the new tax rate takes effect.
General Rules
- Any purchase made before the effective date is subject to the Lower Tax Rate.
- Any purchase made on or after the effective date is subject to the Higher Tax Rate.
Specific Scenarios
- Leases and Rentals: The tax rate is determined by the billing date, not the date the agreement was made.
- Real Property Contracts:
- If the contract was entered into after the effective date, the Higher Tax Rate applies.
- If the contract was entered into before the effective date, the Lower Tax Rate applies. Proper documentation (Form E-589) is required.
- Change Orders: Similar rules to real property contracts apply, depending on when the original contract and the change order were made.
- Layaway Sales: If the item was placed in layaway before the effective date but delivered on or after, the Higher Tax Rate applies.
- Rental Accommodations:
- If the reservation was made before the effective date but the stay occurs on or after, the Higher Tax Rate applies.
- If the stay begins before the effective date and extends beyond, the Lower Tax Rate applies to the portion of the stay before the effective date, and the Higher Tax Rate applies to the portion after.
- Service Contracts: The tax rate is determined by when the contract is sold, not when the service is provided.
- Entertainment Admission: The tax rate is determined by when the admission charge is sold, not when the event occurs.
Cash Basis Accounting
Retailers using cash basis accounting should generally remit the Lower Tax Rate for sales made before the effective date, even if payment is received after. However, if they cannot separately account for these sales, they may need to remit the Higher Tax Rate.
Need More Help?
If you have questions about local sales and use tax rate increases, you can contact the North Carolina Department of Revenue at 1-877-252-3052.
Disclaimer: The content provided on this webpage is for informational purposes only and is not intended to be a substitute for professional advice. While we strive to ensure the accuracy and timeliness of the information presented here, the details may change over time or vary in different jurisdictions. Therefore, we do not guarantee the completeness, reliability, or absolute accuracy of this information. The information on this page should not be used as a basis for making legal, financial, or any other key decisions. We strongly advise consulting with a qualified professional or expert in the relevant field for specific advice, guidance, or services. By using this webpage, you acknowledge that the information is offered “as is” and that we are not liable for any errors, omissions, or inaccuracies in the content, nor for any actions taken based on the information provided. We shall not be held liable for any direct, indirect, incidental, consequential, or punitive damages arising out of your access to, use of, or reliance on any content on this page.
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