The Kiplinger Tax Map: Guide to State Income Taxes, State Sales Taxes, Gas Taxes, Sin Taxes
Tool | Updated October 2019

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
Flag of North Carolina

Mixed Tax Picture

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%; for 2019, it’s 5.25%.

Sales Tax

4.75% state levy. Localities can add as much as 2.75%, and the average combined rate is 6.97%, 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. The 2018 rate is 5.49%; the 2019 rate is 5.25%.

Effective tax rate: 5.49% for single filers, 5.49% for joint filers

Motor Fuel Taxes

Gasoline: $0.3645 per gallon.
Diesel: $0.3645 per gallon.

Property Taxes

In North Carolina, residents pay an average of $894 in taxes per $100,000 of assessed home value.

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
Vapor products: $0.05 per milliliter of e-liquid.

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.

Taxes On Wireless Service

8.89%

Inheritance and Estate Taxes

None.

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