North Carolina sales tax at a glance
| Type of tax | Sales and use tax |
|---|---|
| State rate | 4.75% |
| Local rates | Average 2.35%, highest 3.50% |
| Average combined rate | 7.10% |
| Groceries | 2% local food rateQualifying food is exempt from the 4.75% state tax and taxed at a uniform 2% local rate. Transit taxes and other local rates do not apply to food. |
| Prescription drugs | ExemptPrescription drugs are exempt. Over-the-counter drugs are exempt only when sold on a prescription. |
| Clothing | Taxed (holidays repealed in 2014)Clothing is taxed at the full combined rate. North Carolina repealed its sales tax holidays on 1 July 2014. |
Local averages are population-weighted figures from the Tax Foundation: State and Local Sales Tax Rates, Midyear 2026 (rates as of 1 July 2026). They are a guide, not the rate at any one address. For the exact rate where you buy, use the NCDOR current sales and use tax rates by county.
Worked examples
$200 of groceries anywhere in North Carolina (2%)
| Rate | 2% |
|---|---|
| Price before tax | $200.00 |
| Sales tax | $4.00 |
| Total | $204.00 |
Working: $200.00 × 2% = $4.00. Qualifying food pays only the 2% local food rate, the same in every county. Prepared food on the same receipt would be taxed at the full rate.
Working back from a $108.25 receipt in Charlotte (8.25%)
| Rate | 4.75% state + 3.5% local = 8.25% |
|---|---|
| Price before tax | $100.00 |
| Sales tax | $8.25 |
| Total | $108.25 |
Working back: $108.25 ÷ 1.0825 = $100.00, so the tax was $8.25. Mecklenburg County's combined rate is 8.25%, so dividing by 1.0825 gives the $100 price. Use your own county's local rate elsewhere.
County rates and transit taxes
Every North Carolina county levies a base local sales tax of 2%, and many add a further 0.25%. Some counties, including Mecklenburg, Durham, Orange and Wake, also charge a 0.5% public transportation tax. On 1 July 2026 Mecklenburg County added another 1%, bringing Charlotte's combined rate to 8.25%, the highest in the state. The Department of Revenue publishes a current rate table by county; there is no address lookup, because the rate is the same throughout each county.
The 2% food rate
Food that qualifies for the grocery exemption, such as bread, milk, meat and produce, is exempt from the 4.75% state rate but subject to a 2% local food rate in every county. Transit taxes and the extra county add-ons do not apply to food, so groceries cost the same 2% across the state. Prepared food, candy, soft drinks and dietary supplements are taxed at the full combined rate, and many cities and counties also charge a separate prepared meals tax at restaurants.
North Carolina vs. neighboring states
| State | State rate | Avg. combined | Groceries |
|---|---|---|---|
| North Carolina | 4.75% | 7.10% | 2% local food rate |
| Virginia | 5.3% | 5.77% | 1% statewide |
| Tennessee | 7% | 9.61% | 4% state + local |
| Georgia | 4% | 7.56% | No state tax; local tax applies |
| South Carolina | 6% | 7.49% | No state tax; some local tax |
Average combined rates are from the Tax Foundation, midyear 2026 report. See sales tax rates for every state for the full table.