Tax Regulations

Income Tax

North Carolina's income tax is applicable to all resident individuals and fiduciaries who are required to file returns under federal regulations and any non-resident or part-year residents having income from North Carolina sources.

Sales Tax

The base state sales tax rate is 4.75%. The tax applies to retail sales or leases of tangible personal property; transportation charges; intrastate telephone services; meals; gas, electricity, or other fuels sold for residential or commercial consumption; admission or user fees; use of amusement devices; hotel and motel accommodations; and cleaning or repair of tangible personal property. Items subject to the State rate (4.75%) are also subject to Local Sales and Use Tax.

Transient Occupancy Tax

The Transient Occupancy Tax varies but is normally 3%. This is added to sales tax, which is only applicable to persons who occupy that public accommodation for 30 consecutive days or less. This tax is refundable if staying longer than 30 consecutive days.

Get details on North Carolina's State & Local Taxes and tax system (link will open a PDF document in a separate tab or window of your browser).