Understanding the NC Sales Tax Rate for 2018 and Beyond

It is crucial to comprehend the sales tax rate if you live in North Carolina or intend to do business there. The state’s sales tax is administered by the North Carolina Department of Revenue and is levied on retail sales of tangible personal property, some services, and digital goods.

As a result, each county in North Carolina has a different municipal sales tax rate. The average municipal sales tax rate is around 2.25% and ranges from 2% to 2.75%. On the other side, the state’s sales tax rate is 4.75%. As a result, North Carolina’s combined sales tax rate ranges from 6.75% to 7.5%, with an average of roughly 7%.

On March 1, 2016, North Carolina implemented a sales tax on labor. Prior to this day, services like plumbing, electricity, and car repairs were exempt from the sales tax. The tax is levied on a variety of services, including installation, maintenance, and repair services.

The average total sales tax rate in North Carolina for 2019 was 7%, with the state sales tax rate remaining at 4.75%. Unless a particular exemption exists, this rate is applicable to all retail sales, leases, and rentals of tangible personal property, digital property, and services.

For the year 2021, the state’s sales tax will stay at 4.75% in North Carolina. However, as was already indicated, the local sales tax rate varies by county. As a result, the average combined sales tax rate is somewhere around 7%, with the range being 6.75% to 7.5%. In conclusion, the rate of the NC sales tax is an important factor to take into account when doing business in the state. Businesses can compute the exact amount of tax due and ensure compliance with tax rules by knowing the sales tax rate. To avoid fines or legal troubles, it is crucial to be informed about any adjustments to the sales tax rate.