Standard rate
The standard sales tax rate in North Carolina for 2024 is 4.75%.
Who is obliged to register sales tax in North Carolina
Every business, person, or facilitator engaged in business in North Carolina of one or more of the directions, specified on the site must register online or by mail with the Department to obtain a Certificate of Registration.
Threshold
In North Carolina, a non-resident company must register for sales tax if its sales of digital services in the state exceed $100,000 or if the company conducts more than 200 separate transactions with customers in the state during a calendar year.
Marketplace thresholds by state
The special rules are applicable to the SAAS business.
Software as Service Tax Thresholds by state.
Online Marketplaces
After the Threshold is met, the marketplace facilitator is required to collect and remit sales tax on behalf of all its marketplace sellers.
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.