The Kiplinger Tax Map: Guide to State Income Taxes, State Sales Taxes, Gas Taxes, Sin Taxes
Tool | Updated October 2018

State-by-State Guide to Taxes

Compare state tax rates and rules — on income, ordinary purchases, gas, sin products, property, and more — across the U.S.

North Carolina

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The Bottom Line
Map of North Carolina

Tax Friendly

The Tar Heel State has been shaking up its tax structure, switching out graduated income tax brackets for a flat tax and capturing more services with its sales tax. The tax rate in 2018 is 5.49%; in 2019 it will drop to 5.25%.

Sales Tax

4.75% state levy. Localities can add as much as 2.75%, and the average combined rate is 6.95%, according to the Tax Foundation. Groceries are not taxed by the state, but a 2% local tax is levied.

Income Tax Range

North Carolina has a flat tax rate of 5.49%.

See’s Retiree Tax Map to learn how North Carolina taxes Social Security income and other forms of retirement income.

Motor Fuel Taxes

Gasoline: $0.35 per gallon.
Diesel: $0.35 per gallon.

Property Taxes

The median property tax on North Carolina’s median home value of $157,100 is $1,345.

See’s Retiree Tax Map for details on tax breaks for seniors in North Carolina.

Vehicle Taxes

Registration: 3% tax due when title is transferred, revenue from this tax is specifically allocated to maintenance of North Carolina highways. Property tax: Annual, determined by multiplying the combined county and municipal/district tax rate by the county tax appraisal of the vehicle. Example: In Wake County (Raleigh), a vehicle worth $20,000 would be taxed about $252 each year.

Sin Taxes

Cigarettes: $0.45 per pack
Other tobacco products: 12.8% of the wholesale price

Beer: $0.62 per gallon
Wine: $1 per gallon
Liquor: $14.63 per gallon
North Carolina directly controls the distribution and sale of alcohol. Liquor tax is an estimate by the Distilled Spirits Council of the United States and published by the Tax Foundation.

Vapor products: E-juice is taxed $0.05 per ml

Travel Taxes

Hotel: There is no statewide lodging tax, but localities can levy lodging taxes. Sales tax is due.

Rental cars: 8% plus sales tax.

Taxes On Wireless Service


Inheritance and Estate Taxes

There is no inheritance tax and no estate tax.

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