Avalara Taxrates > Blog > Sales Tax Rate Changes > North Carolina sales tax changes, October 2016 - Avalara

North Carolina sales tax changes, October 2016

  • Aug 3, 2016 | Gail Cole

 North Carolina local sales and use tax rates. October 1, 2016,

Local sales and use tax rate changes will take effect in North Carolina on October 1, 2016.

The following counties will levy a new local sales and use tax of 0.25%, bringing the local rate in both counties up to 2.25% and the combined rate to 7%:

  • Cherokee County
  • Jackson County

The rate of tax in 68 North Carolina counties is 6.75%. Beginning October 1, the following counties have a rate of 7%:

  • Alexander
  • Anson
  • Ashe
  • Buncombe
  • Cabarrus
  • Catawba
  • Cherokee
  • Cumberland
  • Davidson
  • Duplin
  • Edgecombe
  • Greene
  • Halifax
  • Harnett
  • Haywood
  • Hertford
  • Jackson
  • Lee
  • Martin
  • Montgomery
  • New Hanover
  • Onslow
  • Pitt
  • Randolf
  • Robeson
  • Rowan
  • Sampson
  • Surry
  • Wilkes

The sales and use tax rate in Mecklenburg County is 7.25%, and the rate in Durham and Orange Counties is 7.50%.

Unless a specific exemption applies, the combined rate of sales and use tax applies to all sales of taxable tangible personal property and service contracts, gross receipts from admission charges for entertainment, certain digital property, and the sales price or gross receipts derived from installation, maintenance, and repair services. Tax may also apply to “certain other items… pursuant to the provisions of N.C. Gen. Stat. § 105-164.4.”

However, food for home consumption is taxed at a reduced state rate of 2% only (no local tax applies), and no local tax applies to retail sales of aircraft, qualified jet engines, and manufactured and modular homes — these transactions are subject to the general 4.75% state rate only. Additional information is available from the North Carolina Department of Revenue.

To most effective and efficient way to manage sales and use tax in all states is with sales tax software-as-a-service. Learn how it works.

photo credit: helveticaneue via photopin cc

Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.