North Carolina sales tax is due by the 20th of the month after the reporting period for monthly filers, by the last day of the month after the quarter for quarterly filers, and on the monthly schedule with an added prepayment for the highest-volume filers.1North Carolina General Assembly. North Carolina Code 105-164.16 – Returns and Payment of Taxes Which schedule applies to you depends on how much state and local sales tax your business owes in an average month, and the Department of Revenue decides the tier for you.
Which Filer Are You
Every registered business falls into one of three tiers based on average monthly state and local sales tax liability. The department watches your account and can move you to a different tier if your volume changes, and it looks at your combined liability across every location the same person or entity owns or operates.1North Carolina General Assembly. North Carolina Code 105-164.16 – Returns and Payment of Taxes
- Quarterly filing applies if you consistently owe less than $100 per month in combined state and local sales tax.
- Monthly filing applies if you consistently owe at least $100 but less than $20,000 per month. Most small and medium-sized businesses sit here.
- Monthly with prepayment applies if you consistently owe $20,000 or more per month. You file every month and add a prepayment toward the next month’s liability.
Due Dates by Filing Frequency
Quarterly Returns
A quarterly return covers a calendar quarter (January through March, April through June, July through September, or October through December) and is due by the last day of the month after the quarter closes. That puts your four annual deadlines at January 31, April 30, July 31, and October 31.2NCDOR. Filing Frequency and Due Dates Full payment goes in with the return.
Monthly Returns
Monthly returns are due by the 20th of the following month. Tax you collect in March, for example, has to be reported and paid by April 20.2NCDOR. Filing Frequency and Due Dates
Monthly With Prepayment
Businesses in the top tier follow the same monthly schedule, with the return for the prior month due by the 20th. Each return also has to include a prepayment toward the current month’s tax. The prepayment must equal at least 65% of one of three figures: the current month’s actual tax, the same month’s tax from the prior year, or the average monthly tax from the prior calendar year.1North Carolina General Assembly. North Carolina Code 105-164.16 – Returns and Payment of Taxes All payments from this tier must be submitted electronically.2NCDOR. Filing Frequency and Due Dates
When a Due Date Falls on a Weekend or Holiday
If a deadline lands on a Saturday, Sunday, or legal holiday, it rolls to the next business day. That rule applies to every filing frequency.2NCDOR. Filing Frequency and Due Dates
You Still Have to File When You Owe Nothing
A return is required for every reporting period, even when you had no taxable sales. Enter zero as the total tax due and submit on the normal schedule. Skipping a zero-dollar return can get your account flagged as delinquent.3North Carolina Office of Administrative Hearings. 17 NCAC 07B .0104 – Registration and Returns
What a Late Return or Payment Costs
North Carolina charges a separate penalty for filing late and for paying late, and they can stack.
Filing Late
If the return doesn’t arrive by the due date, the penalty is 5% of the net tax due for each month or partial month the return is late, capped at 25% of the tax owed.4NCDOR. Penalties and Fees Overview Filing on time avoids this penalty even if you can’t pay the full balance that day.
Paying Late
For taxes assessed on or after January 1, 2023, the late payment penalty is a flat 5% of the tax not paid by the original due date, and it applies even if the return itself was filed on time. Starting July 1, 2027, the structure shifts to 2% per month, up to a maximum of 10%.4NCDOR. Penalties and Fees Overview
Interest
Interest runs on any unpaid tax from the original due date until the balance clears. The Secretary of Revenue resets the rate twice a year, before July 1 and before January 1, within a floor of 5% and a ceiling of 16% annually.5NCDOR. Interest Overview From January 1 through June 30, 2026, the rate is 7%.6NCDOR. Interest Rate Interest sits on top of any penalties, so an overdue balance grows on two tracks at once.
Asking the Department to Waive a Penalty
If you were charged a penalty for filing or paying late, you can ask the Department of Revenue to waive it. File Form NC-5500 (Request to Waive Penalties) through the department’s website for faster processing, or mail it to the Department of Revenue at PO Box 1661, Raleigh, NC 27602-1661.7NCDOR. Request to Waive Penalties The department reviews each request under its Penalty Waiver Policy and sends a written decision. A waiver covers penalties only; interest on unpaid tax cannot be waived.