| Rate | |
|---|---|
| state rate | 4.75% |
| avg local rate | 2.27% |
| avg combined rate | 7.02% |
| max combined rate | 7.50% |
exemptions
| Category | Status |
|---|---|
| groceries | state exempt, 2% local |
| clothing | taxable |
| prescription drugs | exempt |
| non-prescription drugs | taxable |
notes
- groceries exempt from the 4.75% state rate but subject to a uniform 2% local tax statewide
- relatively narrow range of combined rates (6.75% to 7.50%)
- corporate income tax rate was reduced in 2026
source: NC DOR. data from deepcalc.com