The sales tax rate in Raleigh, NC is 7.25%. That figure combines North Carolina’s 4.75% state rate with 2.50% in local taxes levied by Wake County, and it applies to most retail purchases. Groceries, restaurant meals, vehicles, and hotel stays each follow their own rules, so the actual tax on a given purchase in Raleigh can be lower or higher than 7.25%.
How the 7.25% Is Built
North Carolina charges a statewide 4.75% on most retail sales.1North Carolina General Assembly. North Carolina Code 105-164.4 – Tax Imposed on Retailers and Certain Facilitators Wake County adds four local option taxes on top:
- Article 39: 1.0%
- Article 40: 0.5%
- Article 42: 0.5%
- Article 43 (transit): 0.5%
Together those articles come to 2.50%, giving Raleigh a total combined rate of 7.25%.2North Carolina General Assembly. North Carolina Local Sales Tax Articles Wake County does not levy the additional Article 46 tax that some other North Carolina counties impose.
What the 7.25% Applies To
Most physical goods sold at retail carry the full rate: clothing, electronics, furniture, appliances, sporting goods, and other tangible personal property.1North Carolina General Assembly. North Carolina Code 105-164.4 – Tax Imposed on Retailers and Certain Facilitators Digital downloads are also taxable, including digital audio and audiovisual works, digital books, digital photographs, and electronic magazines or newsletters.3North Carolina Department of Revenue. Certain Digital Property Software is an exception. It is exempt from sales tax, including cloud-based software you access online without downloading.
Several services are taxed at the same 7.25% rate: dry cleaning and laundry, telecommunications and mobile phone plans, video programming subscriptions, and repair, maintenance, or installation services performed on tangible personal property.4North Carolina Department of Revenue. Taxable Items Labor to repair a dishwasher or install a ceiling fan is taxable on that basis.
Groceries Are Taxed at 2%
Unprepared grocery food is not subject to the 4.75% state portion or the 0.5% transit tax. Only Articles 39, 40, and 42 apply, producing a flat 2% tax on qualifying food across North Carolina.5North Carolina Department of Revenue. Food, Non-Qualifying Food, and Prepaid Meal Plans That covers produce, meat, dairy, canned goods, bread, and similar staples bought at the grocery store.
Prepared food is different. A rotisserie chicken from the deli counter, food sold heated, or food sold with utensils for immediate consumption is taxed at the full retail rate rather than 2%.
Restaurant Meals Are Taxed at 8.25%
Wake County levies a 1% prepared food and beverage tax on top of the 7.25% sales tax.6North Carolina General Assembly. Session Law 1991-594 That brings the total tax on a restaurant meal, takeout order, or bar tab in Raleigh to 8.25%. It applies to any retailer selling prepared food within the county, including sit-down restaurants, food trucks, and coffee shops.
Vehicle Purchases Are Taxed Differently
Cars, trucks, and motorcycles do not carry the standard sales tax. Instead, North Carolina charges a Highway Use Tax of 3% based on the vehicle’s retail value or purchase price, collected when the title is issued.7North Carolina General Assembly. North Carolina Code 105-187.3 – Rate of Tax
For most passenger vehicles the 3% applies to the full price with no cap. A $40,000 sedan produces $1,200 in Highway Use Tax. A $2,000 cap exists only for Class A and Class B commercial motor vehicles and recreational vehicles.7North Carolina General Assembly. North Carolina Code 105-187.3 – Rate of Tax A trade-in reduces the taxable amount, so a $15,000 trade against a $40,000 purchase leaves you paying 3% on $25,000. If you bring a vehicle into North Carolina that you’ve owned for more than 90 days, the maximum tax is $250.8NCDOT. Vehicle Taxes
Hotels and Short-Term Rentals
Wake County imposes a 6% room occupancy tax on hotels, motels, inns, and short-term rentals booked through platforms like Airbnb and VRBO.9Wake County Government. Room Occupancy Tax That 6% is charged in addition to the regular state and local sales tax. Stays of 90 consecutive days or longer are not subject to the occupancy tax, which effectively exempts long-term residents and extended corporate housing.
Common Exemptions
Several healthcare items are exempt from state and local sales tax entirely: prescription drugs, insulin, over-the-counter medications sold on prescription, prosthetic devices, mobility equipment sold on prescription, and durable medical equipment and supplies sold on prescription.10North Carolina General Assembly. North Carolina Code 105-164.13 – Retail Sales and Use Tax Breast pumps and their accessories are also exempt.
Most professional services fall outside sales tax altogether. Legal work, accounting, medical consultations, and tuition are not on the state’s list of taxable services, so they carry no sales tax. North Carolina taxes only the services the legislature has specifically named.
Online Purchases
North Carolina uses destination-based sourcing, so the rate applied to a shipped purchase depends on where you receive it. An order delivered to a Raleigh address should be taxed at 7.25%. Large retailers and marketplaces such as Amazon, eBay, and Walmart collect and remit that tax automatically, including for third-party sellers on their platforms.
When a smaller out-of-state seller does not collect North Carolina sales tax, you owe the equivalent amount as use tax. The state’s individual income tax return includes a line for reporting use tax on untaxed purchases. The obligation exists whether or not anyone follows up on small amounts.