Charlotte, North Carolina
Sales Tax 2026

The City of Charlotte is located in Mecklenburg County, North Carolina. Charlotte sales tax rate is 7.25%.

The total sales tax rate in Charlotte comprises the North Carolina state tax, the sales tax for Mecklenburg County, and any applicable special or district taxes. The city does not impose an additional sales tax. The table below provides a breakdown of the sales tax rate by jurisdiction.

Combined Sales Tax Rate	7.25%
North Carolina	4.75%
Mecklenburg County	2.00%
Charlotte	0.00%
District / Special Tax	0.50%

Charlotte Sales Tax Calculator

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The TaxHero sales tax calculator provides a combined sales tax rate based on a full address lookup. A complete address ensures precision since ZIP codes may cross different tax jurisdictions. Results are for reference and may need additional context for compliance. Contact us today for a demo and learn how TaxHero can support your business.

Who Needs to Collect Sales Tax in Charlotte, North Carolina?+

Regally nicknamed the “Queen City” of North Carolina, Charlotte is loved for its greenways and Southern charm. It’s also known as the 2nd leading banking hub in the U.S., making it a reliable banking center for businesses in Charlotte, NC.

Royal history aside, which businesses should collect sales tax in this royally named city?

Generally, businesses in Charlotte are required to collect sales tax if they have a sales tax nexus in North Carolina and sell to Mecklenburg County residents. This rule applies whether you are selling remotely or have a physical location within Charlotte, North Carolina.

What Creates Sales Tax Nexus in Charlotte, North Carolina?+

A sales tax nexus is created based on your business’s significant presence in a state. Two types of sales tax nexus determine your business’s presence in a state: physical nexus and economic nexus.

Physical Nexus

A physical nexus is established by having a substantial physical presence or engaging in enough taxable sales activities within a state. Several factors determine a physical nexus in North Carolina.

Physical Location: This means having an office, a place for distribution, sales, or showcasing products, a warehouse or storage facility, or any other place where you conduct business.
Inventory in the State: This applies to situations where you store products within the state, whether it’s done via a third-party fulfillment center or 3PL (such as Amazon FBA) or an online marketplace.
Business Representatives: Having employees, independent contractors, agents, or other representatives operating within the state on your behalf.
Click-through Nexus: Collaborating with agents, commissioners, referrers, or any other representative living in North Carolina to make taxable sales is a trigger for click-through nexus. This applies whether your business partners are operating online or in person.
If your or your business referrer’s taxable sales in North Carolina exceed the $10,000 threshold over the preceding four quarterly periods, your business establishes physical nexus.

Economic Nexus

Economic nexus is established based on two common factors. First is your business’s total sales revenue, and second is the number of transactions you’ve had within the state. In North Carolina, the economic nexus threshold is:

$100,000 in gross revenue

To access a comprehensive list of all sales tax rules in North Carolina, you may read the governing laws for economic sales tax nexus requirements in North Carolina.

What are Taxable and Non-Taxable Products in Charlotte, North Carolina?+

Generally, each state has different rules when it comes to the taxability of goods and services. In Charlotte, North Carolina, there is a variety of goods that are subject to sales tax and a few that are exempt. Check the table below for reference:

PRODUCT	TAXABLE	EXEMPT
Tangible Products	Jewelry Clothing Furniture Electricity Cosmetics Electronics Automobiles Home Goods Newspapers and Magazines Groceries – Exempt from state sales tax. However, food, non-qualifying food, and prepaid meal plans are subject to a 2% local sales tax.	Insulin Lottery Tickets Agricultural Supplies Fuel and Natural Gas Machinery and Equipment Motor Vehicle Service Contracts Prescribed Durable Medical Equipment and Supplies
Services	A variety of service-based transactions in Charlotte, North Carolina, are taxable. Service Contracts Admission Charges Telecommunications Dry Cleaning and Laundry Prepaid Telephone Calling Satellite Digital Audio Radios Video Programming Services Repair, Maintenance, and Installation Services	Janitorial Services Advertising Services Professional Services
SaaS and Digital Products	Certain Digital Property is taxable in Charlotte, North Carolina, such as: Photographs Digital books Greeting cards Digital audio works Digital magazines, newspapers, reports, and other publications	SaaS is currently not taxable in Charlotte, North Carolina. However, if a customer downloads the software and has constructive possession of the software, the software may be subject to sales tax.
Shipping and Handling	Shipping and Handling charges are generally taxable in Charlotte, North Carolina.	Shipping and Handling charges in Charlotte, North Carolina, are only exempt from sales tax if the following conditions are met: The item is exempt from sales tax and listed separately on the invoice Shipping and handling charges must be distributed proportionally for each item based on the item’s price or weight

For in-depth guidance on taxabilities and exemptions on goods and services, read The Ultimate Guide to Sales Tax in North Carolina.

How to Get a Sales Tax Permit in Charlotte, North Carolina?+

Once you’ve established a sales tax nexus in Charlotte, North Carolina, your next step is making sure you stay compliant by registering your business for a sales tax permit, also known as a seller’s permit or a business license in other states.

To get a sales tax permit in Charlotte, follow our step-by-step guide:

Step 1: Prepare the following necessary information and documents:
- Business Identification Information: Legal business name, physical address, mailing address
- Business Entity Structure (i.e., sole proprietorship, partnership, Subchapter S Corp., corporation, LLC, etc.)
- Federal Employer Identification Number (EIN or FEIN)
- Name, Address, and SSN of owners, partners, or officers
- Business Activity Details: Date & State of Incorporation, start date with the state of North Carolina (nexus start date), Estimated Monthly Sales Tax Liability in North Carolina,
- NAICS Code
Step 2: Now, go to the North Carolina state website, North Carolina Department of Revenue, and click “Sales and Use Tax”
Step 3: After that, click “Registration” among the options that appear on the new page. Take note that registration is free.
Step 4: On the new page, choose “Register Online” and then select the option “Register Your Business Electronically”
Step 5: Next, complete all the required fields until you reach the account type section. Select “Sales and Use Tax and Other Taxes and Service Charge” and then proceed.
Step 6: Review your information and then submit your registration.

After receiving your North Carolina sales tax permit, you must keep it displayed at all times in your business’s physical locations. Renewal is not required, as your permit stays valid as long as your business exists without legal major changes in ownership and structure.

How Do You File and Remit Sales Tax in Charlotte, North Carolina?+

After registering your business in Charlotte, North Carolina, your next step is to file and remit sales tax returns on time. But before filing your sales tax returns, you must know the filing schedule assigned to you by the state.

To begin filing and remitting your sales tax returns in North Carolina, follow our step-by-step guide:

Step 1: Prepare your ecommerce sales tax data (e.g., Taxes Report from Shopify)
Step 2: Go to the North Carolina Sales and Use Tax Online Filing and Payment System website and log in using your account credentials.
Step 3: Enter the required information, such as your account ID number, and then click “Next”
Step 4: Choose the filing method you want to use and then click “Next”
Step 5: Now, fill out the required fields based on your e-commerce sales tax data.
Step 6: After completing the required fields, choose your mode of payment and proceed to make the payment for your return.
Step 7: Review your return and submit it once you confirm that everything is accurate
Step 8: Lastly, keep a copy of your return and payment confirmation as proof of successful submission and for recordkeeping purposes.

NOTE: Late filings result in penalties and fees. Always stay on schedule to avoid any unwanted fines.

Filing sales tax in other states, such as Colorado or New York? You can check out our state-by-state guides.

Charlotte District and Special Tax Rates+

If you make retail sales in North Carolina subject to the state sales tax from a business located in a taxing district, district sales tax is generally due on your sales of tangible personal property. To help you identify the correct sales tax rate in Charlotte, NC, you may look up the sales tax rate by address and ZIP code in our calculator.

Having a hard time keeping track of varying sales tax rates across states? Read: A Founder’s Guide to Sales Tax Compliance Outsourcing

Popular ZIP codes in Charlotte, North Carolina+

28036 28202 28204 28270 29708 28277

Frequently Asked Questions+

1. How much is the selling tax in Charlotte, NC?

The selling tax or sales tax in Charlotte, NC, is 7.25%. This sales tax rate is comprised of the state’s sales tax of 4.75% and the 2.00% sales tax rate of Mecklenburg County, where the city of Charlotte is located. These rates are subject to change at any time.

2. What items are not taxed in North Carolina?

A variety of goods are not subject to the state sales tax in North Carolina, such as:

Lottery Tickets
Agricultural Supplies
Certain Medical Devices
Prescribed Medical Supplies
Groceries – However, local sales tax may still apply. For example, in Mecklenburg County, certain qualified food items are subject to a flat 2.00% sales tax.

For an in-depth list of taxable and non-taxable items in North Carolina, refer to our table above in this blog or read the North Carolina Sales and Use Tax Act article.

3. How to calculate NC sales tax?

To calculate your North Carolina sales tax, you must list the price of your taxable product, including the shipping charges. After that, take North Carolina’s combined sales tax rate, depending on where you are selling. Then, convert the state’s combined sales tax rate into decimal format.

Once you convert the rate into decimal format, multiply your product’s price by the decimal format. The result is your estimated sales tax for that transaction.

Here’s the simplified formula breakdown:
- Price of Goods + Shipping Fee x
- State Sales Tax Rates +
- Local Sales Tax Rates
- = Your Total Sales Tax

Example Scenario:

You’re selling a taxable product worth $50 with a shipping fee of $10. This brings your total sale price to $60.
The product was shipped to Charlotte, North Carolina, where shipping is taxable.
- The combined state, county, city, and other local sales tax rates in Charlotte, North Carolina, is 7.25%.
Convert the state’s combined sales tax rate into decimal format.
- 7.25% turned into decimal format is: 0.0725
Now, multiply your sale price by the decimal format of the combined sales tax rate of the city, county, and state.
- 60 x 0.0725 is = $4.35
Finally, add everything to your base sales price to accurately collect sales tax from your customers.
- [Product Price] $50 +
- [Shipping Fee] $10 +
- [Calculated Sales Tax] $4.35
- TOTAL = $64.35

To simplify the calculation, you can also use TaxHero’s FREE Sales Tax Calculator.

Having Trouble Navigating Charlotte, North Carolina? Sales Tax?

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