North Carolina sales tax on invoices (2026 guide)

North Carolina's general state sales tax rate is 4.75%. Every county adds a local rate of 2.00% or 2.25%, and four counties add a 0.50% transit tax. So the combined rate on most sales is between 6.75% and 7.50%.

North Carolina also taxes repair, maintenance and installation services — an important detail if you fix, service or install things for customers.

North Carolina sales tax rates

Part of the rate	Rate
General state rate	4.75%
Local rate (every county)	2.00% or 2.25%
Transit rate (four counties)	0.50%
Typical combined rate	6.75% – 7.50%

Use the county where the sale is sourced — usually where the customer receives the goods or service — to find the right local and transit rate.

Which services are taxable in North Carolina?

Most professional services, like consulting, design, legal and accounting work, aren't subject to North Carolina sales tax. But some services are:

• Repair, maintenance and installation (RMI) services sold at retail are taxable at the general state rate plus the local and transit rates. That includes repairing or maintaining tangible personal property and, in many cases, work on real property.
• The Department of Revenue publishes a Services to Real Property Taxability Chart that shows how specific services — such as repairs, installations and improvements to buildings — are treated. Work classed as a real property contract (for example new construction) is treated differently from RMI services.

If you're a contractor or handyperson in North Carolina, read the chart for the kind of job you do before you invoice. Getting the classification right determines whether you charge tax on the whole job.

Registering for North Carolina sales tax

Register with the North Carolina Department of Revenue before you make taxable sales or provide taxable services. The Department's guidance for newly registered taxpayers explains how to file returns and when they're due; the filing frequency depends on how much tax you collect.

What a North Carolina invoice should show

• your business name and address,
• the customer's name and address,
• a unique invoice number and invoice date,
• each item or service with its price,
• sales tax as a separate line, with the combined rate, and
• the total due.

For repair and installation work, list parts and labor clearly. In Invoice Native you can split the rate into state, local and transit lines — for example 4.75% + 2.25% + 0.50% — so the customer sees exactly what they're paying.

Exempt sales and Form E-595E

Customers who buy for resale, or who are otherwise exempt, give you Form E-595E, the Streamlined Sales and Use Tax Certificate of Exemption. Keep it on file, don't charge sales tax on that sale, and note the exemption on the invoice.

See how to invoice a tax-exempt customer for what to write.

A worked example

Suppose you're an appliance technician in a county with a 2.25% local rate and no transit tax, so the combined rate is 7.00%. You invoice a homeowner for a repair:

• $400 of repair labor, and
• $200 of replacement parts.

Repair services are taxable in North Carolina, so the tax applies to the whole repair: $600 × 7% = $42.00, for a total of $642.00. Showing labor and parts separately still helps the customer — and you — see what the job cost.

Selling to customers in other states

If you ship goods or deliver taxable services to customers in another state, that state's rules may apply instead of North Carolina's. Since the Supreme Court's 2018 decision in South Dakota v. Wayfair, states can require out-of-state sellers to register and collect their sales tax once sales into the state pass a threshold the state sets. If you sell across state lines regularly, check the thresholds and registration rules of each state you sell into — and use that state's rate on those invoices.

Common mistakes on North Carolina invoices

• Treating repair labor as untaxed, when RMI services are taxable.
• Using a single statewide rate instead of the county's 2.00% or 2.25% local rate (plus transit where it applies).
• Mixing up real property contracts and RMI services — they're taxed differently.
• Not keeping E-595E certificates for exempt sales.
• Not showing sales tax separately.

Quick checklist for North Carolina invoices

• ✅ Registered with the NCDOR before your first taxable sale
• ✅ 4.75% state + 2.00% or 2.25% local (+ 0.50% transit where it applies)
• ✅ Checked whether your repair or installation work is taxable
• ✅ Sales tax shown as a separate line
• ✅ E-595E certificates on file for exempt sales