Sales Tax and Reverse Sales Tax Calculator North Carolina

NORTH CAROLINA [Multidirectional Calculator]
$
%
  • 4.8%
  • 6.75%
  • 7%
  • 7.25%
  • 7.5%
$
$
  • Amount Before Tax ${{amountBeforeTax}}
  • Sales Tax Rate {{SalesTaxRate}}%
  • Amount Of Taxes ${{AmountOfTaxes}}
  • Amount After Taxes ${{AmountAfterTaxes}}



North Carolina – NC Sales Tax Calculator: User Guide

North Carolina is the 28th largest and 9th-most populous state of the United States of America, located in the southeastern region. The state shares its borders with the Atlantic Ocean to the east, Tennessee to the west, Virginia to the north, and South Carolina to the south.

North Carolina holds a special place in its residents' hearts as it offers pristine nature with the stunning Appalachian Mountains, over 300 miles of coastline, temperate weather, southern hospitality, great opportunities for work, recreation, and education, and affordable living. Moreover, its flourishing economy, favorable business environment, and plenty of business opportunities have attracted numerous businesses to establish in the state.

If you plan to start, expand, or move your business in North Carolina, it is suggested to educate yourself with North Carolina Sales Tax. For your assistance, our experts have invested days and nights to bring you a handy NC Sales Tax guide along with a North Carolina Sales Tax Calculator to make your business decision a lot easier.


North Carolina Sales Tax Facts:

  • The statewide sales tax rate charged in North Carolina is 4.75%. Additionally, every county levy a local sales tax ranging from 2% to 2.75%.
  • An additional 0.5% tax is collected in Durham and Orange counties to fund the Research Triangle Regional Public Transportation Authority.
  • The combined sales tax rate in North Carolina can range from 6.75% to 7.5%.
  • The sales tax rate in North Carolina is lower than 51.9% of states in the US.
  • Alamance, North Carolina is among the counties which levies the lowest possible combined sales tax rate of 6.75%.
  • Durham, North Carolina, is among the counties which levies the highest possible combined sales tax rate of 7.5%.
  • A special sales tax rate of 2% is charged on most types of foods (i.e., Groceries).
  • A special sales tax rate of 3% is charged on Aircraft and boats.
  • Back-to-school shoppers can benefit from a statewide sales tax holiday during August's first weekend (Friday to Sunday). Products that can be bought tax-free includes school supplies, notebooks, computer equipment, clothes, and sporting goods.
  • Prescription Drugs are fully exempted from sales tax in NC.
  • Prepared Food is charged with 4.75% of state sales tax. On the top, local rate and transit rates of sales and tax also apply.
  • A North Carolina Sales Tax Exemption Form can be used by individuals and businesses to buy items for resale, improvement, or as raw materials without paying sales tax.
  • Buyers in NC who have bought items from online or out-of-state sellers without paying NC sales tax must pay North Carolina Use Tax at an equivalent rate.

How to calculate Sales Tax in North Carolina?

Businesses and Sellers who have Nexus are required to pay Sales tax to North Carolina on retail sales of specific tangible personal property and services, including laundry service, admissions to entertainment events (e.g., movie tickets) as well as the repair of tangible personal property (including automobiles). They must collect, manage, and transfer it to the North Carolina Department of Revenue while staying in compliance with state laws and avoid penalties and interest.


The sales tax determined on four factors:

  1. Nexus: It is a connection of business with a state. The business is only liable to pay taxes to the states with Nexus.
  2. Location and Products or Services: The sales tax rate varies from product to product and location to location. You must check the sales tax rate applicable to your product according to the product category, county, and city in North Carolina.
  3. Exemptions: Almost All tangible goods and certain services are eligible for sales tax regulation. However, prescription drugs are exempted from NY Sales Tax. You should check with the North Carolina state government to update which goods and services sold in North Carolina are subject to sales tax.

To calculate Sales Tax in North Carolina, follow the steps below:

Step 1 – Determine your Nexus:

As a business owner, you are only required to collect sales tax if you are eligible for collecting sales tax and have Sales Tax Nexus in North Carolina State. And to determine your Nexus in North Carolina, you must have any of the following:

  • Having a place of business places like an office in the state.
  • An employee, independent contractors, agents, or other representatives present in North Carolina.
  • Temporary or permanent, direct or indirect ownership or maintenance of any place of distribution, warehouse or storage place, sales or sample room, or other places of business in the state.
  • Out-of-state sellers with no physical presence in NC but having a Click-through nexus where a person(s) is directly or indirectly rewarded for referring potential purchasers of goods.
  • Out-of-state sellers with no physical presence in NC but having a certain amount of economic activity in the state:
    • gross sales of over $100,000 to North Carolina during the current or previous calendar year
    • 200 or more separate transactions to North Carolina during the current or former calendar year
  • Out-of-state sellers with no physical presence in NC but making sales through a marketplace.
  • Out-of-state seller having inventory stored in NC.

Step 2 – Determine the Sales Tax Rate:

Once you have determined that your Nexus is with North Carolina, next is to deduce the Sales Tax rate (State + Local Sales Tax) applicable on your product, for which you can refer the tables below:

North Carolina Sales Tax Rates by Location:

Once you have determined that your Nexus is with North Carolina, next is to deduce the Sales Tax rate (State + County + City) applicable to your product, for which you can refer the tables below:


North Carolina Sales Tax Rates(Updated January 2020)
County State Rate County Rate Total Sales Tax
Alamance 4.75% 2.00% 6.75%
Alexander 4.75% 2.25% 7.00%
Alleghany 4.75% 2.00% 6.75%
Anson 4.75% 2.25% 7.00%
Ashe 4.75% 2.25% 7.00%
Avery 4.75% 2.00% 6.75%
Beaufort 4.75% 2.00% 6.75%
Bertie 4.75% 2.00% 6.75%
Bladen 4.75% 2.00% 6.75%
Brunswick 4.75% 2.00% 6.75%
Buncombe 4.75% 2.25% 7.00%
Burke 4.75% 2.00% 6.75%
Cabarrus 4.75% 2.25% 7.00%
Caldwell 4.75% 2.00% 6.75%
Camden 4.75% 2.00% 6.75%
Carteret 4.75% 2.00% 6.75%
Caswell 4.75% 2.00% 6.75%
Catawba 4.75% 2.25% 7.00%
Chatham 4.75% 2.00% 6.75%
Cherokee 4.75% 2.25% 7.00%
Chowan 4.75% 2.00% 6.75%
Clay 4.75% 2.25% 7.00%
Cleveland 4.75% 2.00% 6.75%
Columbus 4.75% 2.00% 6.75%
Craven 4.75% 2.00% 6.75%
Cumberland 4.75% 2.25% 7.00%
Currituck 4.75% 2.00% 6.75%
Dare 4.75% 2.00% 6.75%
Davidson 4.75% 2.25% 7.00%
Davie 4.75% 2.00% 6.75%
Duplin 4.75% 2.25% 7.00%
Durham 4.75% 2.75% 7.50%
Edgecombe 4.75% 2.25% 7.00%
Forsyth 4.75% 2.00% 6.75%
Franklin 4.75% 2.00% 6.75%
Gaston 4.75% 2.25% 7.00%
Gates 4.75% 2.00% 6.75%
Graham 4.75% 2.25% 7.00%
Granville 4.75% 2.00% 6.75%
Greene 4.75% 2.25% 7.00%
Guilford 4.75% 2.00% 6.75%
Halifax 4.75% 2.25% 7.00%
Harnett 4.75% 2.25% 7.00%
Haywood 4.75% 2.25% 7.00%
Henderson 4.75% 2.00% 6.75%
Hertford 4.75% 2.25% 7.00%
Hoke 4.75% 2.00% 6.75%
Hyde 4.75% 2.00% 6.75%
Iredell 4.75% 2.00% 6.75%
Jackson 4.75% 2.25% 7.00%
Johnston 4.75% 2.00% 6.75%
Jones 4.75% 2.25% 7.00%
Lee 4.75% 2.25% 7.00%
Lenoir 4.75% 2.00% 6.75%
Lincoln 4.75% 2.25% 7.00%
Macon 4.75% 2.00% 6.75%
Madison 4.75% 2.00% 6.75%
Martin 4.75% 2.25% 7.00%
McDowell 4.75% 2.00% 6.75%
Mecklenburg 4.75% 2.50% 7.25%
Mitchell 4.75% 2.00% 6.75%
Montgomery 4.75% 2.25% 7.00%
Moore 4.75% 2.25% 7.00%
Nash 4.75% 2.00% 6.75%
New Hanover 4.75% 2.25% 7.00%
Northampton 4.75% 2.00% 6.75%
Onslow 4.75% 2.25% 7.00%
Orange 4.75% 2.75% 7.50%
Pamlico 4.75% 2.00% 6.75%
Pasquotank 4.75% 2.25% 7.00%
Pender 4.75% 2.00% 6.75%
Perquimans 4.75% 2.00% 6.75%
Person 4.75% 2.00% 6.75%
Pitt 4.75% 2.25% 7.00%
Polk 4.75% 2.00% 6.75%
Randolph 4.75% 2.25% 7.00%
Richmond 4.75% 2.00% 6.75%
Robeson 4.75% 2.25% 7.00%
Rockingham 4.75% 2.25% 7.00%
Rowan 4.75% 2.25% 7.00%
Rutherford 4.75% 2.25% 7.00%
Sampson 4.75% 2.25% 7.00%
Scotland 4.75% 2.00% 6.75%
Stanly 4.75% 2.25% 7.00%
Stokes 4.75% 2.00% 6.75%
Surry 4.75% 2.25% 7.00%
Swain 4.75% 2.25% 7.00%
Transylvania 4.75% 2.00% 6.75%
Tyrrell 4.75% 2.00% 6.75%
Union 4.75% 2.00% 6.75%
Vance 4.75% 2.00% 6.75%
Wake 4.75% 2.50% 7.25%
Warren 4.75% 2.00% 6.75%
Washington 4.75% 2.00% 6.75%
Watauga 4.75% 2.00% 6.75%
Wayne 4.75% 2.00% 6.75%
Wilkes 4.75% 2.25% 7.00%
Wilson 4.75% 2.00% 6.75%
Yadkin 4.75% 2.00% 6.75%
Yancey 4.75% 2.00% 6.75%

Step 4 – Calculate Sales Tax:

After determining the sales tax rate according to the location and type of purchases, it is easy to calculate the sales tax amount charged on the product and gross price (amount after tax) of a product.

Example # 1:

For instance, you are selling a Portable Fan on your store in Apex, North Carolina, having a net price tag of $57. The amount that a buyer has to pay (including sales tax) on a check out would be:

Manual Method:

Net Price (amount before Tax) of a Portable Fan: $57

Total Sales Tax rate: 0.00% (Apex) + 2.50% (Wake County) + 4.75% (North Carolina State) = 7.250%


Total Sales Tax amount = $57 x 7.250% = $4.13

Gross Price (Amount after Tax) = 57 + 4.13 = $61.1


It means the buyer has to pay $61.1 for a Portable Fan on a cash counter.


Using our Sales Tax Calculator:

All of the steps mentioned above can be skipped to get an instant result using our Sales Tax Calculator. All you need is:

  1. Input the $57 Net Price of the Portable Fan as Amount Before Tax
  2. Input or select 250% of the combined Sales Tax rate on the Tax Rate menu.

Our calculator will automatically calculate the result, and represents it in 3 different forms, as shown in the image below:

north-carolina-tax-calculator

Reverse Sales Tax Calculation

In the example above, we have explained to you to calculate the Sales Tax amount payable in a product, and the Gross Price of the Product.

But there are also instances when you are required to deduce how much sales tax buyer has actually paid on a product or you may want to check the accuracy of the sales tax indicated on your item's receipt.

This is where the Reverse Sales Tax Calculation Kicks in. And luckily, our North Carolina Sales Tax Calculator can perform this calculation like a Pro.

Example:

Your buyer has paid $95 for a Portable Light at your store in High Point, North Carolina. Now the buyer is inquiring how much a Portable Light actually cost before the sales tax was added. So you need to follow the steps below to determine the amount before tax (net price) of a Portable Light:

Gross Price (Amount after Tax) of Portable Light: $95

Total Sales Tax rate: 0.00% (High Point) + 2.00% (Guilford County) + 4.75% (North Carolina State) = 6.75%.


Manual Method:

Gross Price with sales tax = [Net Price × (tax rate in decimal form + 1)]

95 = [Net Price x ((6.75/100) + 1)]

95 = Net Price x 1.07

$88.7 = Net Price


So the original Price (net price) of a Portable Light was $88.7.


Using our Sales Tax Calculator:

You can also use our Sales Tax Calculator for Reverse Sales Tax calculation to skip the aforementioned manual method. All you need is:

  1. Input the $95 Gross Price of Portable Light as Amount after Tax
  2. Input or select 6.75% of combined Sales Tax Rate on the Tax Rate

Our calculator will automatically calculate the result and represents it in 3 different forms.

Also Check: North Carolina Paycheck Calculator to Calculate your Paycheck in North Carolina State including all taxes and take home pay.

FAQs

Answer: The sales tax rate charged in North Carolina on the state level is 4.75%. Additionally, every county levy a local sales tax ranging from 2% to 2.75%.

Answer: The retail sales of specific tangible personal property and services, including laundry service, admissions to entertainment events (e.g., movie tickets), as well as the repair of tangible personal property (including automobiles) is subjected to sales tax in North Carolina.

Answer: Yes, labor or services involving repair, maintenance, or installation services of tangible personal property (including automobiles) are subjected to sales tax in North Carolina.

Answer: Yes, Groceries and most other types of foods are charged with a special reduced sales tax rate of 2% in North Carolina.

Answer: Yes, all delivery, shipping, handling and transportation charges charged by the retailer involved with the sale of taxable tangible personal property, certain services for storage, use, consumption or otherwise sourced to the State, as well as specific digital property are subjected to North Carolina Sales Tax.

Other States Calcutors