Four bills introduced in 2026 seek to exempt menstrual products from North Carolina sales tax: House Bill 1079, House Bill 1165, House Bill 1200, and Senate Bill 1029. “Tampon tax” or “pink tax” are commonly used to refer to taxes on feminine hygiene products.
HB 1079 exempts menstrual products
HB 1079 would establish a sales and use tax exemption for menstrual products effective October 1, 2026.
Menstrual products are defined as menstrual cups, panty liners, sanitary napkins, tampons, and other similar tangible personal property designed for feminine hygiene with the human menstrual cycle.
HB 1165 exempts qualifying menstruation products
HB 1165 would exempt qualifying menstruation products from the state sales and use tax effective July 1, 2026.
The bill uses the same basic definition for menstrual products as HB 1079 but adds a caveat. To qualify for the exemption, menstruation products must “contain no intentionally added PFAS” (perfluoroalkyl and polyfluoroalkyl substances).
The North Carolina Department of Commerce could decertify a menstruation product under certain circumstances, like if the manufacturer failed to provide necessary documentation upon request. Decertified products would not qualify for the exemption.
This bill may be a long shot. As a Streamlined Sales Tax (SST) member state, North Carolina must follow SST’s definition of menstrual discharge collection devices, which doesn’t mention PFAS. The Department of Revenue (DOR) would need to request an amendment to the Streamlined Sales Tax Agreement or risk being out of compliance.
“North Carolina could petition to change the SST definition,” says Scott Peterson, VP of Government Relations at Avalara, “or the state could just be out of compliance with the SST definition and take their punishment, which would most likely be insignificant.”
Peterson notes that there are practical issues surrounding the process for excluding PFAS products. “I presume the North Carolina Department of Commerce would have to look at the components of every product that could potentially qualify for the exemption. That is likely to be a tremendous amount of effort. Who is on the hook if the department misses a product? Is the product taxable by law or by the department’s determination? Would a retailer be liable if they exempt a product the department says doesn't qualify because at first glance, it looked identical to another, qualifying product? This seems to add a significant administrative and financial burden on retailers — and Avalara would have all the same challenges as a retailer.”
HB 1200 expands exemption to other items
HB 1200 would exempt the following products effective October 1, 2026:
Baby wipes.
Diapers or incontinence underpads sold without a prescription by an enrolled and state Medicaid provider that’s reimbursed by the state Medicaid program or a Medicaid managed care organization. (Diapers and incontinence underpads are already exempt when sold on such a prescription.)
Feminine hygiene products, defined as “tampons, panty liners, menstrual cups, sanitary napkins, and other similar tangible personal property designed for feminine hygiene in connection with the human menstrual cycle” (excluding grooming and hygiene products like antiperspirants, mouthwash, shampoo, and sunscreens).
Over-the-counter drugs intended for the treatment of a health condition in children age 12 and under.
Prenatal vitamins.
The bill removes the current requirement that, to qualify for the exemption, diapers and incontinence pads must be sold on prescription by an enrolled state Medicaid/Health Choice provider for use by beneficiaries of the state Medicaid program when the provider is reimbursed by the state Medicaid program or a Medicaid managed care organization.
SB 1029 exempts essentials for working families
SB 1029, Tax Relief on Essentials for Working Families, would exempt the following products effective October 1, 2026:
The legislation also eliminates the 2% local sales and use tax on qualifying food, making food fully exempt from both state and local sales taxes.
