The state of North Carolina exempts several goods and services from paying sales tax. Prescription medicines, specific medical devices, and equipment that improves mobility, for instance, are exempt from both state and local sales taxes. In addition, the following entities and people are exempt from paying sales tax:
– Governmental agencies and establishments
– Charitable organizations that have received exemption status from the N.C. Department of Revenue
– Native American tribes and enrolled members
– Religious organizations and establishments
Generally speaking, clothing in North Carolina is taxable. There are a few exceptions, though. State and municipal sales taxes are not applied to the purchase of clothing and footwear priced at less than $100 each. Additional items free from sales tax include costumes, graduation hats and gowns, and apparel for infants and young children. Food is taxed in North Carolina. Groceries are often subject to the combined state and municipal sales tax rate in North Carolina. However, several things, notably unprepared foods intended for human consumption, such as fruits, vegetables, bread, meats, and dairy products, are free from sales tax. Food that has been prepared, like meals from a restaurant or deli, is typically taxable. Sales Tax in Charlotte, North Carolina.
In South Carolina, counties may impose additional local sales taxes of up to 2% on top of the state’s 6% sales tax. As a result, South Carolina’s overall sales tax rate can range from 6% to 8%.
In conclusion, some products and services, such as prescription medications and some medical equipment, are free from sales tax in North Carolina. Tribes of Native Americans, government entities, and nonprofit organizations are also exempt. Generally speaking, clothing is taxable, but there are several exceptions. The total state and municipal sales tax rate is applied to groceries, with few exceptions for unprepared food. In Charlotte, North Carolina, the sales tax rate is 6.75%, whereas in South Carolina it can range from 6% to 8%.