North Carolina Sales Tax

If you have economic nexus in North Carolina, you are required to collect sales tax and file returns. Failure to do so can result in penalties and interest charges.

North Carolina Sales Tax is 4.75% on tangible goods. Local county, city, and special district rates may add to this total, so it’s important that you use a sales tax calculator when making purchases online. Shipping charges are also taxable in North Carolina, so make sure to include them when calculating your total sales tax due at checkout. The Department of Revenue manages the North Carolina sales tax program and offers a variety of resources for businesses seeking to comply with the state’s sales tax laws. In addition, the state’s website provides information on how to file a sales tax return and the applicable due dates.

It’s essential that your business complies with sales tax laws to avoid fines and penalties. To help you do so, we recommend using tax software to manage all of your sales tax compliance needs. With one click, you can connect all of your sales channels, including Amazon, Shopify, and more, to instantly calculate and remit the correct taxes for every transaction.

How to Pay North Carolina Sales Tax?

If you are a remote seller, you must register with the NC Department of Revenue online at MyTax NC, an online payment and filing portal. Once registered, you will be assigned a filing frequency. This is usually based on your business size and sales volume. For example, large businesses are often required to file quarterly. Returns must be filed by the 20th of each month or the last day of the month if that date falls on a weekend or holiday. The NC Department of Revenue also requires that you keep records of all sales and use tax payments.

North Carolina Sales Tax Update
North Carolina Sales Tax 1

North Carolina Sales Tax Update

The North Carolina legislature is currently working to balance the state budget and prioritize tax reductions. The state’s sales tax rate is 4.75 percent, with local rates adding up to an average of 6.98 percent. The state has a low individual income tax rate and ranks 10th in CNBC’s 2023 State Business Tax Climate Index. The governor has pushed for substantial investment in education and infrastructure, but legislators have focused on lowering taxes for businesses.

The legislation includes accelerated individual and corporate income tax cuts, changes to the franchise tax, and new or expanded sales and use tax exemptions. It also establishes a new excise tax on for-hire ground transportation services, such as Uber and Lyft, which will be imposed at a rate of 1.5% for exclusive ride service providers and 1% for shared ride services.

The bill also creates a sales tax exemption for certain business supplies and equipment. This exemption will help small business owners save money, while still encouraging growth in the economy and preserving jobs.

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