North Carolina sales tax for online sellers: nexus, permit and filing

What is the North Carolina sales tax rate?

The state rate is 4.75%. Every county adds 2% or 2.25%, and a few add a further 0.5% for transit, so combined rates run from 6.75% to 7.5%. Tax is charged at the rate for the county of delivery. Groceries are exempt from the state tax and pay a 2% local tax.

When does an online seller have to collect in North Carolina?

You must collect if you have a physical presence in North Carolina, such as staff, an office or inventory, or if your gross sales from remote sales sourced to North Carolina are more than $100,000 in the previous or current calendar year. The law counts sales you make as a marketplace seller towards that figure, even though the marketplace collects the tax on them. There is no longer a transaction-count test.

How nexus works in general is covered in physical vs economic nexus and economic nexus explained.

What if you sell on Amazon, eBay or Etsy?

North Carolina requires marketplace facilitators to collect and remit sales tax on the sales they facilitate, so you do not collect on those orders. Your own website and other direct channels remain your responsibility. See marketplace facilitator laws.

How do you register?

Register online with the North Carolina Department of Revenue for a sales and use tax certificate of registration. There is no fee. North Carolina is a member of the Streamlined Sales Tax agreement, so you can also register through the Streamlined system. See Streamlined Sales Tax registration.

What are the steps once you have nexus?

1. Confirm nexus

   Check your presence and your sales into North Carolina against its threshold.

2. Register before collecting

   With the North Carolina tax agency, as set out above.

3. Set up your store

   Charge the correct combined rate for each delivery address and product.

4. File and pay

   On the schedule North Carolina assigns, including zero returns where required.

How are returns filed?

Returns are filed online and are due by the 20th of the month after the period. The Department assigns monthly or quarterly filing based on the tax you collect. One return covers the state and county taxes, reported by county.

See how to file a sales tax return.

What changed in 2024?

Until June 30, 2024, a remote seller needed to register at either $100,000 of sales or 200 transactions. The transaction test was repealed from July 1, 2024. The Department has said that a seller registered only because of the old test can close its registration if its North Carolina sales were not more than $100,000 in the previous year or so far in the current year, after filing returns for the periods up to closing. See cancelling a sales tax permit.

What does an example look like?

A seller has $80,000 of North Carolina sales through a marketplace and $30,000 through its own website in a year, $110,000 in total. Because marketplace sales count, it has passed $100,000 and must register. It collects tax only on the $30,000 of website sales, since the marketplace collects on the rest, charging 6.75% or more depending on the county of delivery.

What else should sellers know?

• Sellers outside the US: the same rules apply wherever the business is based. See selling on Amazon US as a non-resident.
• Late registration: tax you should have collected becomes your own debt. See voluntary disclosure agreements and collected but not remitted.
• Records: keep sales by delivery address, tax collected and any certificates. See exemption certificates and sales tax audits.
• Stopping: returns stay due until the account is closed. See filing frequency and cancelling a sales tax permit.
• Store settings: switch on collection only once you are registered. See Shopify sales tax setup.

This guide is general information. It is not tax or legal advice for your situation.