|Taxes that affect most North Carolina residents – and that you want to be aware of – are income, sales and motor vehicle taxes. Here is some helpful information about each one.
Income taxes are due on your taxable earnings each year. The requirements for filing income tax returns in North Carolina are different from filing your federal taxes. Every NC resident whose income for the taxable year equals or exceeds the following amounts must file a state return: $5,500 for single taxpayers, $11,000 for those who are married and filing jointly, $2,500 for married taxpayers who file separately and $6,900 for those who file as a head of household.
Sales taxes are due on purchases of most goods and services in North Carolina. The combined state and local sales tax rate is 6.75 percent in most counties. A few counties have a rate of 7 or 7.25 percent. To find the rate in your county, visit this site: www.dornc.com/taxes/sales/taxrates.html.
Items subject to sales tax are: tangible personal property, rental accommodations, charges for cleaning, pressing and laundering linens or apparel, certain other services and some digital property. Residents may also owe Use Tax, if they purchase any of the above-mentioned items outside of North Carolina but intend to use the product inside the state, or if they did not pay sales tax at the time of the purchase. Use taxes should be reported on the income tax return each year.
North Carolina has two sales tax holidays each year. The first is held in early August and is commonly known as the School Sales Tax Holiday that is designed to help families with their back-to-school shopping. The second is held in November and allows consumers to purchase certain Energy Star rated appliances and products without paying sales tax.
The state’s motor fuels tax is 35 cents per gallon.
North Carolina also collects a 3 percent Highway Use Tax on vehicles in lieu of a state sales tax on vehicles. The tax is assessed each time a title is transferred. Out-of-state residents who move to North Carolina pay the tax according to a value determined by the North Carolina Division of Motor Vehicles. If a sales tax or use tax was paid to a taxing jurisdiction outside North Carolina within 90 days of moving, credit may be allowed.
For more information, visit the Newcomer’s Guide on the Department of Motor Vehicles Website at:
If you have questions or need more information about North Carolina taxes, please visit the Department of Revenue’s Website at
or call 1.877.252.3052.