The sales tax rate in Cary, NC is 7.25% in the Wake County portion of town and 7% in the Chatham County portion. Cary straddles the county line, and because local rates differ between the two counties, the combined rate at the register depends on which side of town the store sits on. Both rates include North Carolina’s 4.75% state sales tax, with the rest coming from local and transit levies.
How the Two Rates Break Down
Most of Cary is in Wake County, where the 7.25% total is made up of the 4.75% state tax, 2% in local county tax, and a 0.5% transit tax that funds regional public transportation. Every $100 in taxable purchases costs you $7.25 in tax.
The smaller Chatham County portion of Cary comes in at 7%. Chatham’s local tax is 2.25%, and there’s no transit tax, which pulls the combined rate a quarter point below Wake’s. Retailers on each side collect the correct rate for their location, so you don’t have to do the math yourself.
Which Rate Applies to You
North Carolina uses destination-based sourcing, so the rate is set by where the buyer receives the goods rather than where the seller is based. Order something online from a Raleigh store and have it shipped to your Cary address in Wake County, and you pay 7.25%. Walk into a shop on the Chatham County side of Cary and you pay 7%. For in-store purchases, the store’s address controls; for deliveries, your address does. On a large purchase, the quarter-point gap is worth paying attention to.
What Gets Taxed at the Full Rate
Sales tax applies to tangible personal property, meaning physical items you can carry. Clothing, furniture, electronics, appliances, and sporting goods are all taxed at the full combined rate for the county where the sale happens. North Carolina has no clothing exemption, so a winter coat is taxed the same as a television.
Digital goods carry the same rate as physical ones. Downloaded movies, music, ebooks, digital newspapers, and electronically transferred photographs are all taxed, whether you own them outright or access them by subscription.
A narrow slice of services is taxable too, including dry cleaning, laundry, telecommunications, and linen rental. Most professional services, such as legal advice, accounting, engineering, medical care, and consulting, are not subject to sales tax. The line can blur when a service produces a tangible deliverable like custom software or printed blueprints, but straightforward professional advice stays untaxed.
Restaurant Meals and the Wake County Meal Tax
Restaurant meals, takeout, and any food prepared for immediate consumption are taxed at the full combined rate. On top of that, Wake County adds a 1% prepared food and beverage tax to every restaurant bill, coffee shop order, and concession purchase inside the county. The upshot: a sit-down meal in the Wake County part of Cary effectively carries an 8.25% tax burden, combining the 7.25% sales tax and the 1% meal tax. The Chatham County side of Cary does not have this extra meal tax.
Groceries, Prescriptions, and Other Reduced or Exempt Items
Unprepared food, what most people think of as groceries, is taxed at a flat 2% in North Carolina regardless of county. The state’s 4.75% rate and the transit tax don’t apply. A $150 grocery run in Cary costs $3 in tax on either side of the county line. Prepared foods, candy, and soft drinks don’t qualify and are taxed at the full combined rate.
Prescription medications are fully exempt from both state and local sales tax. Durable medical equipment sold on prescription, such as oxygen delivery systems, mobility devices, and prosthetics, is also exempt. Over-the-counter medications don’t share that exemption and are taxed at the regular rate.
What You Pay on a Vehicle
Cars, trucks, and motorcycles don’t get charged the regular sales tax. Instead, North Carolina applies a 3% highway-use tax each time a vehicle title transfers. It covers new and used vehicles alike and is collected through the DMV at registration rather than at the dealership. The 3% rate is lower than the standard combined sales tax, which gives vehicle buyers a modest break compared with states that charge full sales tax on cars.
Selling Personal Items at a Yard Sale
If you’re selling your own belongings at a yard sale or through an online marketplace, you generally don’t need to collect sales tax, as long as you paid tax when you originally bought the items and you aren’t in the business of selling similar goods. A one-time sale of your used lawnmower is fine. Start flipping lawnmowers regularly and the state treats you as a retailer, which means registering and collecting tax.