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2024 Guide to Sales Tax in Raleigh, North Carolina

North Carolina Sales Tax Rate
4.75%
Wake County Sales Tax Rate
2%
Special Sales Tax Rate
0.5%
Raleigh Sales Tax Rate
0%

If you're operating a business in Raleigh, North Carolina, it's essential to understand the local sales tax regulations to ensure compliance and smooth operation. This guide provides a comprehensive overview of the sales tax in Raleigh, North Carolina.

We will discuss the various sales tax rates at the state, county, and city levels, how to calculate sales tax in Raleigh, and the requirements for businesses to collect sales tax. Additionally, we provide sales tax rates for the top 10 most populated ZIP codes in Raleigh and tips to ensure compliance with sales tax regulations.

What is the Sales Tax in Raleigh?

The total sales tax rate in Raleigh consists of the North Carolina state tax rate, the Wake County tax rate, and additional special tax rates where applicable.

Breakdown of Sales Tax in Raleigh

  • State Sales Tax: 4.750%
  • County Sales Tax: 2.000%
  • City Sales Tax: 0.000%
  • Special Sales Tax: 0.500%

What is Raleigh City Sales Tax?

In Raleigh, part of Wake County, the city sales tax adds an additional 0.000% to the state sales tax.

Tax Rates in Raleigh, North Carolina

Here are the sales tax rates for the top 10 most populated ZIP codes in Raleigh:

ZIP Code State Sales Tax County Sales Tax City Sales Tax Special Sales Tax
27603 4.750% 2.000% 0.000% 0.500%
27604 4.750% 2.000% 0.000% 0.500%
27606 4.750% 2.000% 0.000% 0.500%
27609 4.750% 2.000% 0.000% 0.500%
27610 4.750% 2.000% 0.000% 0.500%
27612 4.750% 2.000% 0.000% 0.500%
27613 4.750% 2.000% 0.000% 0.500%
27614 4.750% 2.000% 0.000% 0.500%
27615 4.750% 2.000% 0.000% 0.500%
27616 4.750% 2.000% 0.000% 0.500%

Other Tax Rates for Raleigh

Here are some other applicable tax rates for businesses in Raleigh:

Type of Sales Tax Rate
Non-Nexus Sellers – State Use Tax 4.750%
Non-Nexus Sellers – County Use Tax 2.000%
Non-Nexus Sellers – City Use Tax 0.000%
Non-Nexus Sellers – Special Use Tax 0.500%
Out-of-State Sellers – State Use Tax 4.750%
Out-of-State Sellers – County Use Tax 2.000%
Out-of-State Sellers – City Use Tax 0.000%
Out-of-State Sellers – Special Use Tax 0.500%
Marketplace Facilitators – State Sales Tax 4.750%
Marketplace Facilitators – County Sales Tax 2.000%
Marketplace Facilitators – City Sales Tax 0.000%
Marketplace Facilitators – Special Sales Tax 0.500%

What Items are Taxable in Raleigh?

In North Carolina, certain items are taxable while others are exempt. Common taxable items include:

Item Description TIC Number
Apparel Clothing and footwear 10020
Electronics Computers and accessories 20020
Furniture Home furnishings 30020

What Items are Exempt from Taxes in Raleigh?

Some items are exempt from sales tax in North Carolina, typically for essential goods or to encourage certain purchases:

Item Description TIC Number
Prescription Drugs Medications 40020
Groceries Unprepared food items 50020
Medical Equipment Durable medical equipment 60020

Who Needs to Collect Sales Tax?

Businesses need to collect sales tax in Raleigh if they have either physical or economic nexus in North Carolina.

Physical Nexus

You have a physical presence in North Carolina if you:

  • Own or lease property in North Carolina
  • Have employees in North Carolina
  • Maintain inventory in North Carolina

Economic Nexus

You have economic nexus if your sales into North Carolina exceed $100,000 or 200 transactions in the current or previous calendar year.

How to Get a Sales Tax Permit?

If you meet the nexus requirements, you must register for a sales tax permit in North Carolina. Here’s how:

  1. Visit the North Carolina Department of Revenue’s website.
  2. Complete the application for a sales tax permit.
  3. Submit the application and await approval.

How Do You Charge the Right Amount for Sales Tax?

Ensuring you charge the correct sales tax in Raleigh involves:

How Do You File and Remit Sales Tax?

Sales tax returns are filed with the North Carolina Department of Revenue. Here’s how:

  1. Collect sales tax from customers.
  2. File your sales tax return online.
  3. Remit the collected taxes to the state.

Conclusion

Understanding and complying with sales tax regulations in Raleigh is essential for any business operating in North Carolina. Use this guide to navigate the complexities of sales tax in Raleigh and ensure your business remains compliant.

Sales Tax Guides by State

Our sales tax guides provide an overview of sales tax rates, nexus thresholds, taxable and nontaxable items, along with other valuable tax knowledge for every U.S. state.