North Carolina
Provinces
North Carolina
Provinces
North Carolina
About
North Carolina
About
North Carolina
North Carolina
North Carolina
Standard rate
The standard sales tax rate in North Carolina for 2024 is 4.75%.Sales of tax-free products and services
- Prescription drugs;
- Grocery food, excluding prepared food;
- Medical devices, items like wheelchairs, crutches, and hearing aids;
- Legal and medical services;
- Certain agricultural supplies.
Who is obliged to register sales tax in North Carolina?
Any business, individual, or entity conducting business in North Carolina in any capacity must register online or by mail with the Department to obtain a Certificate of Registration and collect sales tax. This requirement applies to both in-state and remote sellers.
Standard rate
4.75%
Reduced rate
-
Threshold
$100,000
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Threshold
As of November 1, 2018, North Carolina imposes sales tax collection requirements on remote sellers who exceed $100,000 in gross sales or 200 transactions in the current or prior year. These thresholds apply uniformly to both goods and digital services, with no differentiation between the two. Merchant thresholds by state Marketplace thresholds by state The special rules are applicable to the SAAS business. Software as Service Tax Thresholds by state.Online Marketplaces
As of February 1, 2020, marketplace facilitators like Amazon or eBay are required to collect and remit sales tax on behalf of third-party sellers in North Carolina. Individual sellers using these platforms do not need to register for sales tax separately if all their sales are processed through the marketplace.Registration procedure
Sellers can register by using the Department’s online business registration website or by sending a filled Form NC-BR.Sales tax payment and filing date
- If your tax liability is consistently between $100 and $20,000 per month, you should file a return monthly and pay taxes on or before the 20th day of each month for all taxes due for the previous calendar month;
- If your tax liability is consistently less than $100 per month, then you need to file a return quarterly and pay taxes due on or before the last day of the month for all taxes due for the previous calendar quarter;
- If your tax liability is more than $20,000 per month, you should file a return monthly and pay taxes on or before the 20th day of each month for all taxes due for the previous calendar month. In addition to the tax payment, you must make a prepayment for the next month’s tax liability. Monthly tax returns and prepayment are should be filed online.
Penalty and interest
If tax is due, both a failure to file a penalty of 5% per month or a fraction thereof (no more than 25%) and a failure to pay a penalty of 10% will be due. Interest is calculated on the amount of tax payable from the date of the tax payment deadline until the date the tax is actually paid.North Carolina Sales Tax Holiday
North Carolina does not currently have any sales tax holidays.North Carolina Sales Tax Nexus
- Physical Presence: Companies with a physical presence in the state, including offices, warehouses, or representatives, must collect sales tax.
- Economic Nexus: Established if a company has gross sales in North Carolina exceeding $100,000 in the previous or current calendar year or 200 or more separate transactions with buyers in the state.
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