Ultimate North Carolina Sales Tax Guide
| State taxing authority: | North Carolina Department of Revenue |
| 2023 North Carolina sales tax rate: | 4.75% |
| Local sales tax rates? | Yes |
| Streamlined Sales and Use Tax Agreement Member? | Yes |
Do I have to collect North Carolina sales tax from customers?
Retailers who meet these two requirements are required to collect sales tax in North Carolina:
- Has sales tax nexus in North Carolina
- Sells taxable products or services in North Carolina
What creates sales tax nexus in North Carolina?
North Carolina considers retailers who are “engaged in business” in the state to have sales tax nexus. This includes:
- Physical presence - an office, warehouse, store or other location or employees, contractors, salespeople or other personnel, or making marketplace-facilitated sales OR
- Economic nexus - your gross receipts exceeded $100,000 or you made 200 or more sales into North Carolina in the previous or current calendar year
Learn more about sales tax nexus and when that means you’re required to collect sales tax here.
Do I have to collect sales tax from North Carolina customers if I sell on Amazon, Walmart, eBay or Etsy?
No. North Carolina has a marketplace facilitator law, which means that marketplaces like Amazon and eBay are required to collect sales tax on behalf of 3rd party sellers on their platform.
If you have sales tax nexus in North Carolina, keep in mind that you are still required to collect sales tax on your other, non-marketplace, North Carolina sales.
Learn more about what marketplace facilitator sales tax means for e-commerce sellers here.
Are my products taxable in North Carolina?
Most tangible personal property is subject to sales tax. However, some necessities like food, clothing and medication are not taxable in some states. And sometimes states consider things like digital goods (eBooks, music, movies) and software-as-a-service (SaaS) taxable even though they can’t be touched or held.
Here’s how North Carolina taxes the most commonly sales tax exempt items:
Are groceries taxable in North Carolina?
No, grocery items are non-taxable in North Carolina.
Is clothing taxable in North Carolina?
Yes, clothing is taxable in North Carolina.
Are digital products taxable in North Carolina?
Yes, digital products such as e-books or purchased digital movies are taxable in North Carolina.
Is software-as-a-service (SaaS) taxable in North Carolina?
No. SaaS is non-taxable in North Carolina.
Are services taxable in North Carolina?
While most services are non-taxable in North Carolina, the following services are subject to sales tax:
- Admission charges to entertainment activities
- Dry cleaning and laundry services
- Prepaid telephone calling services
- Repair, maintenance and installation services
- Satellite digital audio radio services
- Service contracts
- Telecommunications and related services
- Video programming services
How to Register for a North Carolina Sales Tax Permit
Register for a North Carolina seller's permit online at the North Carolina Department of Revenue.
Go here to learn how to register for a sales tax permit in every US state.
Do I need a North Carolina sales tax permit if I’m only a wholesaler?
Contact the North Carolina Department of Revenue to inquire about sales tax registration for wholesalers.
Do I need a North Carolina sales tax permit if I only sell temporarily in the state?
Yes. North Carolina requires that retailers engaged in business at “specialty markets or other events” like flea markets, fairs, festivals, etc. register, collect and remit sales tax.
How to Collect Sales Tax in North Carolina
North Carolina is a “destination-based” sales tax sourcing state. This means that when you make a taxable sale to a customer in North Carolina, you should charge the combined sales tax rate at the buyer’s ship-to address.
Should you collect sales tax on shipping charges in North Carolina?
Yes. Shipping charges are subject to sales tax in North Carolina.
Learn about sales tax on shipping in every US state here.
How to File and Pay Sales Tax in North Carolina
When your sales tax filing due date approaches, you can file North Carolina sales tax returns in multiple ways.
- File and pay online - You can file and pay North Carolina sales tax online via their Online Filing and Payments system. Taxpayers who owe more than $20,000 per month are required to file and pay online.
- File and pay by mail - You can fill out form E-500 and mail it in. You will receive a sales tax return booklet when you register for a North Carolina sales tax permit.
- Telefile - You can telefile by calling 1-877-252-3052
- Let Zamp handle your North Carolina sales tax filing and remittance so you never have to look at a sales tax return again!
Learn how to file and pay sales tax in other US states here.
I didn’t collect any North Carolina sales tax this period. Do I still need to file a return?
Yes. You should still file a “zero” return with the state even if you didn’t collect any sales tax over the taxable period.
What is the penalty for filing and/or paying North Carolina sales tax late?
The penalty for failure to file North Carolina sales tax is 5% of tax due if filed within one month. If filed later than one month late, there is an additional 5% penalty per month or $5, with a maximum of 25% in all.
The penalty for failure to pay North Carolina sales tax is 10% of the tax due with a $5 minimum.
Can I get an extension on filing my North Carolina sales tax return?
If you are unable to file or pay on time, contact the North Carolina Department of Revenue about a sales tax filing extension.
Can I amend a North Carolina sales tax return?
Yes. The Department of Revenue provides information about amending a paper return here.
How often will I be required to file and pay sales tax in North Carolina?
How often North Carolina requires you to file sales and use tax depends on your sales tax liability.
| Sales Tax Filing Frequency | Sales Tax Filing Criteria |
| Quarterly | Sales tax liability is less than $100 per month |
| Monthly | Sales tax liability is more than $100 per month but less than $20,000 per month |
| Monthly with Prepayments | Sales tax liability is more than $20,000 per month |
North Carolina sales tax due dates
If a North Carolina sales tax due date falls on a Saturday, Sunday or legal holiday then the return is due the following business day.
North Carolina Monthly Sales Tax Filing Due Dates
| Taxable Period | Filing Due Date |
| January 2023 | February 21, 2023 |
| February 2023 | March 20, 2023 |
| March 2023 | April 20, 2023 |
| April 2023 | May 22, 2023 |
| May 2023 | June 20,2023 |
| June 2023 | July 20, 2023 |
| July 2023 | August 21, 2023 |
| August 2023 | September 20, 2023 |
| September 2023 | October 20, 2023 |
| October 2023 | November 20, 2023 |
| November 2023 | December 20, 2023 |
| December 2023 | January 22, 2024 |
North Carolina Quarterly Sales Tax Filing Due Dates
| Taxable Period | Filing Due Date |
| Q1 (Jan-March) 2023 | April 20, 2023 |
| Q2 (Apr-June) 2023 | July 20, 2023 |
| Q3 (July-Sept) 2023 | October 20, 2023 |
| Q4 (Oct-Dec) 2023 | January 22, 2024 |
North Carolina Annual Sales Tax Filing Due Date
| Taxable Period | Filing Due Date |
| Year 2023 | January 22, 2024 |
North Carolina Semi-Annual Sales Tax Filing Due Dates
| Taxable Period | Filing Due Date |
| January 1-June 30 | August 21, 2023 |
| July 1-December 31 | February 20, 2024 |
- Do I have to collect North Carolina sales tax from customers?
- Are my products taxable in North Carolina?
- How to Register for a North Carolina Sales Tax Permit
- How to Collect Sales Tax in North Carolina
- How to File and Pay Sales Tax in North Carolina
- I didn’t collect any North Carolina sales tax this period. Do I still need to file a return?
- What is the penalty for filing and/or paying North Carolina sales tax late?
- Can I get an extension on filing my North Carolina sales tax return?
- Can I amend a North Carolina sales tax return?
- How often will I be required to file and pay sales tax in North Carolina?
- North Carolina sales tax due dates
