North Carolina sales tax codes and rates
North Carolina's state sales tax rate is 4.75%; county and city rates come on top and are not included. A Nefin company that sells into North Carolina gets 3 sales codes, each named after the line of the E-500 it fills, so the return's figures add up as you invoice. Purchases you owe use tax on go under NC-4-PFU, and Nefin works out the use tax due.
North Carolina codes from the E-500
Each code is “NC-” plus the line it fills on the E-500. Rates are the state rate only; add local rates in Settings, VAT rates, where you collect them.
| Code | What it covers | Rate |
|---|---|---|
| NC-4 | NC taxable receipts 4.75% (E-500 Line 4, Receipts) | 4.75% |
| NC-2 | NC sales for resale (E-500 Line 2) | 0% |
| NC-3 | NC receipts exempt from state tax (E-500 Line 3) | 0% |
| Code | What it covers | Rate |
|---|---|---|
| NC-4-PFU | NC purchases for use, use tax (E-500 Line 4, Purchases for Use) | 0% |
North Carolina in the tax books
Nefin’s sales tax book has one row per invoice and one column per E-500 line; these are the North Carolina columns and the totals worked out from them.
Sales Tax Book
North Carolina - E-500
- [NC-4]General state rate, receipts (Line 4)
- [NC-2]Sales for resale (Line 2)
- [NC-3]Receipts exempt from state tax (Line 3)
Totals Nefin calculates
- [NC-1] North Carolina gross receipts (Line 1)Sum of the net amounts in [NC-4] + [NC-2] + [NC-3]
- [NC-4-TAX] State tax 4.75% on receipts (Line 4, Tax)Net amount × 4.75%, from [NC-4]
Use Tax Book
North Carolina - E-500
- [NC-4-PFU]Purchases for use (Line 4)
Totals Nefin calculates
- [NC-4-TAX] State tax 4.75% on purchases (Line 4, Tax)Net amount × 4.75%, from [NC-4-PFU]
Frequently asked questions
What is the North Carolina sales tax rate?
The state rate is 4.75%. Counties, cities and districts may add local rates, which vary by address and are not part of these codes.
Which North Carolina sales tax codes does Nefin set up?
3 sales codes from the E-500, for example NC-4 (NC taxable receipts 4.75% (E-500 Line 4, Receipts)), NC-2 (NC sales for resale (E-500 Line 2)), NC-3 (NC receipts exempt from state tax (E-500 Line 3)).
How does Nefin handle North Carolina use tax?
Book a purchase on which the vendor charged no North Carolina tax under NC-4-PFU (NC purchases for use, use tax (E-500 Line 4, Purchases for Use)). The bill stays at the price you paid, and the use tax book works out the tax you owe at 4.75%.
Are these North Carolina codes official?
They are a starting point. Each code follows a line of the E-500, but check them against your return before you file, and edit them in Settings, VAT rates.