Taxable Items

North Carolina imposes sales and use tax on the sales price of, or gross receipts derived from, taxable sales of the following:

  • Tangible personal property, including the lease or rental of tangible personal property.
    • Tangible personal property is personal property that may be seen, weighed, measured, felt, or touched or is in any manner perceptible to the senses. The term includes:
      • Water.
      • Steam.
      • Prewritten computer software.
      • Gas.
      • Electricity.
  • Certain digital property, regardless of whether the purchaser of the property has a right to use it permanently or to use it without making continued payments.
    • Certain digital property includes digital audio works, digital audiovisual works, digital books and all of the following if transferred electronically:
      • A magazine, a newspaper, a newsletter, a report, or another publication.
      • A photograph.
      • A greeting card.
  • Specified services. 

Items Subject to Tax

Tab/Accordion Items

The general state and applicable local and transit rates of sales and use tax apply to the sales price of each article of tangible personal property that is not subject to a special rate of tax under N.C. Gen. Stat. § 105-164.4 or exempt from tax under N.C. Gen. Stat. § 105-164.13. 

The general sourcing principles are found in N.C. Gen. Stat. § 105-164.4B. 

If the correct amount of sales tax has not been paid on taxable tangible personal property, use tax is due.

For additional information refer to the main web page for sales and use tax.

The general state, applicable local, and applicable transit rates of sales and use tax apply to the sales price of certain digital property that is sold at retail. The tax applies regardless of whether the purchaser of the property has the right to use it permanently or to use it without making continued payments. 

Certain digital property includes specified digital products and additional digital goods and does not include an information service or an educational service.1

For additional information, refer to the Certain Digital Property Overview webpage.

  • 1

    Refer to N.C. Gen. Stat. § 105-164.3 for definitions of certain digital property, specified digital products, additional digital goods, information service, and educational service.

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