North Carolina · NC · Money & taxes
North Carolina: Are groceries taxed?
Groceries exempt
North Carolina exempts groceries from its 4.75% state sales tax, but a 2% local sales tax applies to them.
Qualifying food is exempt from the state sales tax, and the statute lists certain food items that stay taxable. Groceries are still taxed at a flat 2% local rate. Transit and other local rates don't apply to them.
What the law says
(a) State Exemption. - Food is exempt from the taxes imposed by this Article unless the food is included in one of the subdivisions in this subsection.
Sources
- N.C. Gen. Stat. § 105-164.13B Official · ncleg.gov
- NCDOR: Food, Non-Qualifying Food, and Prepaid Meal Plans Official · ncdor.gov
- NCDOR: Sales and Use Tax Rates & Other Information Official · ncdor.gov
Confirm with the state
- Agency
- North Carolina Department of Revenue
- Phone
- 1-877-252-3052
- Website
- ncdor.gov
How bordering states compare
- Georgia Groceries exemptGeorgia exempts groceries from its 4% state sales tax, but local sales taxes generally still apply to them.
- South Carolina Groceries exemptSouth Carolina exempts unprepared food that SNAP can buy from its 6% state sales tax, but local sales taxes may apply.
- Tennessee Taxed at a lower rateTennessee taxes groceries at a reduced 4% state rate, compared with its 7% general state sales tax rate.
- Virginia Groceries exemptVirginia ended its state sales tax on groceries in 2023, but a 1% local tax still applies statewide.
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