How to compute nc-sales-tax for North Carolina, tax year 2025: rates, thresholds, and step-by-step rules with primary-source citations.
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General reference only
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State sales tax rate
4.75%N.C. Gen. Stat. § 105-164.4
Local rate range
2.00% – 2.75%N.C. Gen. Stat. § 105-164.4
Maximum combined state + local rate
7.50%N.C. Gen. Stat. § 105-164.4
Sourcing method
Destination-based (SST)Streamlined Sales and Use Tax Agreement; N.C. Gen. Stat. § 105-164.4B
Economic nexus threshold — gross sales
$100,000N.C. Gen. Stat. § 105-164.8(b)
Economic nexus threshold — transaction count
200 transactionsN.C. Gen. Stat. § 105-164.8(b)
Streamlined Sales Tax membership status
Full memberStreamlined Sales and Use Tax Agreement
General tangible personal property (TPP) rate
4.75% state + localN.C. Gen. Stat. § 105-164.4
Clothing — state sales tax exemption
TAXABLE — no exemptionN.C. Gen. Stat. § 105-164.4
Grocery food — state tax status
EXEMPT from state tax; local 2% appliesN.C. Gen. Stat. § 105-164.13B
Grocery food — local rate applied
2%N.C. Gen. Stat. § 105-164.13B
Prepared food rate
TAXABLE at full rate (4.75% state + local)N.C. Gen. Stat. § 105-164.4
SaaS (Software as a Service) taxability
NOT TAXABLE — NC has not enacted clear SaaS taxationN.C. Gen. Stat. § 105-164.4
Canned software (downloaded) taxability
TAXABLEN.C. Gen. Stat. § 105-164.4
Digital goods taxability
TAXABLEN.C. Gen. Stat. § 105-164.4
Professional services taxability
NOT TAXABLEN.C. Gen. Stat. § 105-164.4
Manufacturing equipment — tax status
EXEMPT (refund program)N.C. Gen. Stat. § 105-164.14A
Prescription drugs — tax status
EXEMPTN.C. Gen. Stat. § 105-164.13
Resale — tax status
EXEMPTN.C. Gen. Stat. § 105-164.28
Rendered from the facts database. General reference only — confirm with a qualified professional before acting.
Quick reference
| Field | Value |
|---|---|
| Jurisdiction | North Carolina |
| State rate | 4.75% |
| Local rate range | 2.00% -- 2.75% |
| Maximum combined rate | 7.50% |
| Sourcing | Destination-based (SST) |
| Economic nexus | $100,000 OR 200 transactions |
| Tax authority | North Carolina Department of Revenue (NCDOR) |
| Portal | https://www.ncdor.gov |
| SST member | Yes (full member) |
| Skill version | 2.0 |
Transaction pattern library
| Pattern | Taxable? | Notes |
|---|---|---|
| General TPP | TAXABLE 4.75% + local | |
| Clothing | TAXABLE | No exemption |
| Grocery food | EXEMPT from state | Local 2% applies |
| Prepared food | TAXABLE at full rate | |
| SaaS | NOT TAXABLE | NC has not enacted clear SaaS taxation |
| Canned software (download) | TAXABLE | |
| Digital goods | TAXABLE | |
| Professional services | NOT TAXABLE | |
| Manufacturing equipment | EXEMPT | Refund program |
| Prescription drugs | EXEMPT | |
| Resale | EXEMPT |
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Other North Carolina computations in the OpenAccountants Tax Library.
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