State guide · NC
North Carolina sales tax and property tax
Every county adds tax, groceries are not quite tax free, and a property tax bill you can work out yourself from two numbers.
Facts read on official North Carolina pages on · Checked by Radif Partners · How we calculate
- State sales tax
- 4.75%
- Local sales taxes
- Yes, by address
- Groceries
- Exempt from the state rate
- Clothing
- Taxed like other goods
- Median property tax
- $2,044
- Effective property rate
- 0.61% · #37 of 51
North Carolina's state sales tax is 4.75%, but nobody pays it alone: all 100 counties levy local taxes totalling 2.00%, 48 of them add a 0.25% quarter-cent, and Durham, Mecklenburg, Orange and Wake add a 0.50% transit tax. Groceries are exempt from the state and transit rates but still pay a flat 2% local rate in every county, while candy, soft drinks and prepared food are taxed in full. Clothing is taxed, and no sales tax holiday appears in the Department of Revenue's 2026 bulletins. Boats pay a reduced 3% with a $1,500 ceiling. Property tax is moderate: the median owner paid $2,044 in 2024 on a $333,000 home (Census ACS), an effective rate of 0.61%, ranked 37 of 51. Owners 65 or older or disabled with income up to $38,800 can exclude the greater of $25,000 or half the home's value by filing Form AV-9 by June 1.
Total to pay
$104.75
Sales tax $4.75 · 4.75% of the price
| Price before tax | $100.00 |
| State tax · 4.75% | $4.75 |
| Local tax · 0% | $0.00 |
| Total | $104.75 |
Rule applied: general state rate. Exact local rate for an address: North Carolina rate lookup. How this is calculated.
Sales tax in North Carolina
The North Carolina Department of Revenue publishes one table of total rates by county, effective July 1, 2026, and it is the only lookup there is: no address tool exists, because local sales taxes are levied county-wide. The base pieces come from Articles 39, 40 and 42, which every county levies; Article 46 adds a quarter point in 48 counties, and Article 43 transit taxes apply in four. Mecklenburg County began an additional local tax on July 1, 2026, so receipts from before and after that date differ. A $180 order of taxable goods in a county at the 2.00% base pays $12.15 in total.
Food is the rule that surprises visitors. Qualifying groceries escape the 4.75% state rate and any transit tax, but a 2% local rate applies everywhere, so a $180 cart of groceries still carries $3.60 of tax. Candy, soft drinks, dietary supplements and vending machine food are non-qualifying and pay full rates, and so does prepared food, defined as food sold heated, two or more foods combined by the store, or food sold with utensils the store provides.
Some big-ticket items are taxed on their own terms. Boats, jet skis, kayaks and canoes pay 3% with a maximum of $1,500 and no local rate: $900 on a $30,000 boat, and the cap is reached at $50,000. Surfboards and paddle boards are not boats and pay the general rate. Manufactured and modular homes are taxed at 4.75% on half the price, aircraft at the state rate with a $2,500 maximum. Cars pay a highway use tax collected by NCDMV, not sales tax. Items bought out of state without tax owe use tax, reported on Form D-400 by individuals.
What the state charges, item by item
| Item | State rate | Local tax | Rule |
|---|---|---|---|
| Most goods | 4.75% | yes | General State rate of 4.75%. Every county levies local taxes under Articles 39, 40 and 42 totalling 2.00%; some counties add 0.25% (Article 46) and some a 0.50% transit tax. Total county rates are published by NCDOR (current table effective July 1, 2026). |
| Groceries (food for home) | 0% | yes | Qualifying food is exempt from the State and transit rates but subject to a flat 2.00% local rate statewide. Prepared food, candy, soft drinks, dietary supplements and food from vending machines (non-qualifying food) bear the full State, local and transit rates. |
| Clothing | 4.75% | yes | Clothing is taxable tangible personal property at the general State and local rates. |
| Prescription drugs | 0% | no | |
| Boats | 3% | 3% State rate with a maximum tax of $1,500 per boat (jet skis, kayaks and canoes included); local and transit rates do not apply. | |
| Manufactured and modular homes | 4.75% | General State rate applied to 50% of the sales price; local and transit rates do not apply. | |
| Aircraft | 4.75% | General State rate only, maximum tax $2,500 per aircraft. | |
| Qualifying food | 2% | Flat 2.00% local rate; State and transit rates do not apply. |
Local sales taxes
Levied by counties (Articles 39, 40 and 42 in all 100 counties; optional Article 46 quarter-cent) and county public transportation (transit) taxes under Article 43. Local rate increases must be enacted and levied at least 90 days before their effective date. Find the exact combined rate for an address with the official North Carolina lookup, then type the local part into the calculator above.
Sales tax holidays in 2026
No 2026 sales tax holiday was found on the official North Carolina pages read on October 5, 2026.
Worth knowing about North Carolina sales tax
- Since July 1, 2026 Mecklenburg County levies an additional local sales and use tax, changing its combined rate. source
- Groceries are not fully tax-free: a 2% local rate applies to qualifying food in every county, reported on the '2% Food Rate' line of Form E-500. source
- Boats are capped at $1,500 of tax; surfboards, paddle boards and windsurfers are not 'boats' and pay the full general rate. source
- Drugs required by federal law to be dispensed only on prescription, over-the-counter drugs sold on prescription, and insulin are exempt. source
- Forty-eight counties levy the optional 0.25% Article 46 tax; the 0.50% Article 43 transit tax is levied only in Durham, Mecklenburg, Orange and Wake counties. source
- A prepared food item is food sold heated, two or more foods combined by the retailer, or food sold with utensils provided by the retailer. source
Property tax in North Carolina
North Carolina publishes the formula for a property tax bill, and it fits on one line: the county's appraisal divided by 100, times the combined county and city or district rate per $100. The Department of Revenue's own example is a $200,000 home at a combined 0.865 per $100, which owes $1,730. The appraisal is the market value as of the county's last reappraisal, not today's price, and reappraisal years vary by county, so two similar houses in neighboring counties can be valued years apart.
At the Census median ratio of 0.61%, a $300,000 house pays about $1,842 a year. Property is listed in January, in the county where it sits, and counties may extend the listing period. Cars are handled differently: under Tag and Tax Together, the vehicle property tax is paid to NCDMV with the registration renewal.
Three relief programs apply to a permanent residence, filed together on Form AV-9 with the county assessor by June 1. The Elderly or Disabled Homestead Exclusion removes the greater of $25,000 or 50% of the appraised value for owners aged 65 or older, or totally and permanently disabled, with prior-year income up to $38,800 for 2026 ($39,900 for 2027): on a $300,000 home that is $150,000 off the taxable value. The Circuit Breaker deferment limits taxes to 4% or 5% of income for owners who have lived in the home five full years, deferring the rest. Disabled veterans can exclude up to $45,000 of value with no age or income test.
Property tax on a home in North Carolina
Typical bill per year
$2,045
| Per month | $170 |
| Median effective rate in North Carolina | 0.61% |
| Median bill paid | $2,044 |
Census median ratio; your county, city and school district set the real levy.
| Census figure | North Carolina |
|---|---|
| Median home value (owner-occupied) | $333,000 |
| Median real estate taxes paid | $2,044 |
| with a mortgage | $2,285 |
| without a mortgage | $1,690 |
| Effective rate (tax ÷ value) | 0.61% |
| Rank by effective rate (1 = highest) | 37 of 51 |
| Rank by median bill | 35 of 51 |
How the taxable value is set
The tax bill equals the county appraisal (market value as of the county's last reappraisal) divided by 100 and multiplied by the combined county and municipal/district rate. Reappraisal years vary by county and are published by NCDOR. Who levies the tax: local: counties, municipalities and special districts set tax rates per $100 of appraised value; county assessors appraise and list property. Real property is listed in the county where it is located.
Other property tax relief
- Circuit Breaker Property Tax Deferment. For owners 65+ or totally disabled who have owned and occupied the home five full years: taxes are limited to 4% of income up to $38,800, or 5% of income up to $58,200 (2026); the excess is deferred. Cannot be combined with the other two exclusions. source
- Disabled Veteran Exclusion. Excludes up to the first $45,000 of appraised value of the permanent residence of a disabled veteran; no age or income limit; also available to an unremarried surviving spouse. source
Worth knowing about North Carolina property tax
- The regular listing period for property is the month of January; counties may extend it, and individual extensions can run to April 15. source
- Under 'Tag and Tax Together', vehicle property tax is paid to NCDMV with the registration renewal, not to the county. source
- NCDOR's official example: a $200,000 home taxed at a combined 0.865 per $100 owes $1,730. source
- Income limit for the elderly/disabled exclusion rises from $38,800 (2026) to $39,900 (2027); circuit breaker upper limit $59,850 in 2027. source