The sales tax rate in Alamance County, North Carolina is 6.75% on most retail purchases. That total combines the 4.75% North Carolina state rate with a 2.00% local rate collected for the county.1North Carolina Department of Revenue. Current Sales and Use Tax Rates Alamance sits at the lower end of the statewide range because it has not adopted two optional local levies (the Article 43 transit tax and the Article 46 quarter-cent tax) that would require voter approval and could push the combined rate to 7.25%.
How the Rate Is Built
North Carolina imposes a 4.75% state sales tax on most retail transactions.2North Carolina General Assembly. North Carolina General Statutes Chapter 105 – 164.4 – Tax Imposed on Retailers and Certain Facilitators Counties then layer on local taxes authorized by separate articles of the state tax code. Article 39 alone authorizes 1% on the same transactions subject to the state general rate.3North Carolina General Assembly. North Carolina General Statutes 105-467 – Scope of Sales Tax Additional articles bring Alamance County’s local total to 2.00%, for a combined 6.75%.
What You Pay 6.75% On
Most tangible goods sold at retail carry the full 6.75% rate: clothing, electronics, furniture, appliances, and similar items. Digital products like downloaded music, e-books, and streaming video are taxed at the same rate.2North Carolina General Assembly. North Carolina General Statutes Chapter 105 – 164.4 – Tax Imposed on Retailers and Certain Facilitators
Admission charges to entertainment events are also taxable at the combined rate. That covers tickets to concerts, movies, museums, exhibits, and guided tours. Participation fees for activities like golf, bowling, and gym memberships are not taxed, and neither are tuition or registration fees for educational conferences.2North Carolina General Assembly. North Carolina General Statutes Chapter 105 – 164.4 – Tax Imposed on Retailers and Certain Facilitators
Groceries Are Taxed at 2%
Qualifying groceries get a sizable break. North Carolina exempts food for home preparation from the 4.75% state tax, so you pay only the 2.00% local portion in Alamance County.4North Carolina Department of Revenue. Food, Non-Qualifying Food, and Prepaid Meal Plans A $100 grocery run adds $2.00 in tax instead of $6.75.
Not everything sold in a grocery store qualifies. The following are taxed at the full 6.75%:4North Carolina Department of Revenue. Food, Non-Qualifying Food, and Prepaid Meal Plans
- Prepared food sold heated, combined by the retailer, or sold with eating utensils.
- Candy and soft drinks.
- Dietary supplements, including vitamins, minerals, and herbal products.
- Food dispensed from a vending machine, regardless of what the item is.
The split shows up most at deli counters and convenience stores. A rotisserie chicken from the hot case is taxed at 6.75%. A raw chicken from the meat aisle is taxed at 2%. Same store, different rate.
Vehicles, Boats, Aircraft, and Phone Service Follow Different Rules
Motor vehicles sit outside the regular sales tax system. Instead of 6.75% at the dealership, you pay a 3% highway use tax when the vehicle is titled, capped at $2,000 for commercial motor vehicles and recreational vehicles.5North Carolina General Assembly. North Carolina General Statutes 105-187.3 – Rate of Tax This is a flat statewide rate and is not affected by Alamance County’s local tax.
Boats are taxed at 3% with a maximum of $1,500 per boat.6North Carolina Department of Revenue. Instructions for Form E-555, Boat and Aircraft Use Tax Return Aircraft are taxed at the 4.75% state rate with a $2,500 cap, and local taxes do not apply to aircraft sales.7North Carolina Department of Revenue. Aircraft and Qualified Jet Engines The caps bite on larger purchases: a $100,000 boat still owes only $1,500.
Telecommunications are the odd one going the other direction. North Carolina taxes phone and internet service at a flat 7% combined rate statewide, regardless of county.8North Carolina Department of Revenue. Telecommunications Service and Ancillary Service Your Alamance County phone bill carries 7% tax, not 6.75%.
What’s Fully Exempt
Several categories carry no sales tax at all. Prescription drugs, insulin, and prosthetic devices are exempt from both state and local tax, as are durable medical equipment and supplies sold on prescription, along with breast pumps and related supplies.9North Carolina General Assembly. North Carolina General Statutes 105-164.13 – Retail Sales and Use Tax Exemptions Manufacturing machinery and equipment, along with electricity and fuel used directly in manufacturing, are also exempt. Businesses buying items for resale can avoid tax at purchase by providing the seller with Form E-595E, the Streamlined Sales and Use Tax Certificate of Exemption; the tax is then collected when the item reaches the end consumer.10North Carolina Department of Revenue. Form E-595E, Streamlined Sales and Use Tax Certificate of Exemption
Online and Out-of-State Purchases
If you buy something from a seller that does not collect North Carolina tax, you owe use tax at the same 6.75% combined rate on anything you store, use, or consume in Alamance County.11North Carolina Department of Revenue. Consumer Use Tax If you already paid sales tax to another state on the same item, North Carolina gives a credit for that amount, so you only owe any difference.
In practice, most large online purchases already have Alamance County’s rate applied at checkout. Out-of-state retailers that sell more than $100,000 into North Carolina in the current or prior calendar year must register and collect tax.12North Carolina Department of Revenue. Remote Sales Marketplace facilitators like Amazon, Etsy, and eBay collect and remit the tax for their third-party sellers.13North Carolina Department of Revenue. Marketplace Facilitators and Marketplace Sellers The use tax obligation mainly matters for purchases from smaller sellers that fall below the threshold and don’t use a covered marketplace.
How you report use tax depends on your situation:
- If you file a North Carolina income tax return, report use tax on non-business purchases directly on Form D-400.
- If you don’t file Form D-400, file Form E-554, Consumer Use Tax Return, by April 15 of the year following the purchase.14North Carolina Department of Revenue. Instructions for Form E-554, Consumer Use Tax Return
- For qualifying food, report the 2% tax on Form E-554 even if you file Form D-400.
- For boats and aircraft, use Form E-555, Boat and Aircraft Use Tax Return.6North Carolina Department of Revenue. Instructions for Form E-555, Boat and Aircraft Use Tax Return