The sales tax rate in Wilmington, NC is 7%. That combined rate applies everywhere in New Hanover County and blends North Carolina’s 4.75% state sales tax with 2.25% in county-level local taxes. A few categories, including groceries, prescriptions, and vehicles, are taxed at a lower rate or under a different tax entirely.
How the 7% Is Built
North Carolina charges a statewide sales tax of 4.75% on most retail purchases, and every county in the state starts from that same base.1North Carolina General Assembly. North Carolina Code 105-164.4 – Tax Imposed on Retailers New Hanover County layers on another 2.25% through four local sales tax articles:
- Article 39: 1%, the first local sales tax authorized for all North Carolina counties2North Carolina General Assembly. North Carolina Code 105 – Article 39 – First One-Cent Local Government Sales and Use Tax
- Article 40: 0.5%
- Article 42: 0.5%
- Article 43 transit tax: 0.25%
Those four add up to 2.25%, which brings the Wilmington total to 7%.3North Carolina General Assembly. North Carolina Local Sales Tax Articles New Hanover County has not adopted the Article 44 quarter-cent tax, which was proposed in 2022 and would have pushed the combined rate to 7.25%.4New Hanover County. Quarter-Cent Sales Tax for Public Transportation in New Hanover County
What You Pay 7% On
The full combined rate applies to most tangible personal property you’d buy at a store or online: clothing, electronics, furniture, household goods, and the like. Digital products are taxed at the same rate, including downloaded software, streaming purchases, music, and e-books delivered to a Wilmington address.5North Carolina Department of Revenue. Taxable Items
A handful of services also carry the 7%. Dry cleaning and laundry businesses are treated as retailers under state law and must charge sales tax on their gross receipts, and telecommunications services like phone and internet are subject to the combined rate as well.1North Carolina General Assembly. North Carolina Code 105-164.4 – Tax Imposed on Retailers
Groceries Are Taxed at 2%
Unprepared food, meaning the groceries most people buy for home cooking, is exempt from the 4.75% state portion. It isn’t tax-free, though. A 2% local tax still applies to qualifying food in New Hanover County.6North Carolina Department of Revenue. Food, Non-Qualifying Food, and Prepaid Meal Plans The reduction exists because the Article 43 transit tax and the Article 44 increment are statutorily barred from applying to food; since New Hanover hasn’t adopted Article 44, the result at the register is 2% on groceries rather than the full 7%.
Prepared food is different. Restaurant meals, deli items, and anything a retailer has heated, combined, or made ready to eat on the spot are taxed at the full 7%. Food bought with SNAP benefits or WIC food instruments is fully exempt.7North Carolina General Assembly. North Carolina Code 105-164.13 – Retail Sales and Use Tax Exemptions
Prescriptions and Medical Items
Prescription medications are completely exempt from North Carolina sales tax, and that includes insulin. Over-the-counter drugs are only exempt when sold on a prescription, so a bottle of ibuprofen off the shelf costs you the full 7%, while the same product dispensed by a pharmacist on a prescription is tax-free. Prosthetic devices, durable medical equipment, and durable medical supplies sold on prescription are also exempt.7North Carolina General Assembly. North Carolina Code 105-164.13 – Retail Sales and Use Tax Exemptions
Buying a Vehicle: 3% Instead of 7%
Motor vehicles are specifically exempt from the general sales tax. Buy a car in Wilmington and you pay a 3% highway use tax instead, due when the title is issued.8North Carolina General Assembly. North Carolina Code 105 – Article 5A – Highway Use Tax Commercial motor vehicles and recreational vehicles get a $2,000 cap on the highway use tax; standard passenger vehicles do not. On a $40,000 car, that works out to $1,200 rather than the $2,800 you’d owe at the general 7% rate.
Online and Out-of-State Purchases
Most major online retailers now collect North Carolina sales tax automatically, and marketplace platforms like Amazon, eBay, and Etsy are legally treated as the retailer for third-party sales, so they handle collection on behalf of the individual seller.9North Carolina General Assembly. North Carolina Code 105-164.4J – Marketplace-Facilitated Sales
When a seller doesn’t collect North Carolina tax, you still owe the same 7% as consumer use tax on anything stored, used, or consumed in the state. This covers tangible goods, digital property, and taxable services.10North Carolina Department of Revenue. Consumer Use Tax Most individuals report it on Form D-400, the state income tax return. If you don’t file a D-400, you use Form E-554, the Consumer Use Tax Return. Boat and aircraft purchases are reported separately on Form E-555 regardless of your other filing. In practice, use tax tends to come up on purchases from smaller out-of-state sellers, private-party transactions, or items brought in from another state.