What is sales and use tax in NC?

North Carolina sales tax details The North Carolina (NC) state sales tax rate is currently 4.75%. Depending on local municipalities, the total tax rate can be as high as 7.5%. County and local taxes in most areas bring the sales tax rate to 6.75%–7% in most counties but some can be as high as 7.5%.

Which NC tax form do I use?

All individuals (including part-year residents and nonresidents) required to file a North Carolina individual income tax return must file Form D-400. In addition to Form D-400, you may be required to complete and attach the following additional tax forms: Form D-400 Schedule S, 2019 Supplemental Schedule.

Can you file NC BN online?

Registration for Sales and Use Tax Account You may obtain Form NC-BR online, by mail, or by contacting the Taxpayer Assistance and Collection Center at 1-877-252-3052 (toll free).

What are purchases for use?

Foreign Purchases. Generally, use tax applies to purchases of tangible personal property made outside the United States and brought into, or shipped into California for storage, use, or other consumption.

Do I need to collect sales tax in North Carolina?

Every person engaged in business in North Carolina is required to collect and pay sales or use tax on retail sales or leases of tangible personal property and certain digital property not specifically exempt by law. Some services are also taxable.

Who needs to collect sales tax in NC?

You’ll need to collect sales tax in North Carolina if you have nexus there. There are two ways that sellers can be tied to a state when it comes to nexus: physical or economic. Physical nexus means having enough tangible presence or activity in a state to merit paying sales tax in that state.

What income is not taxable in NC?

North Carolina is moderately tax-friendly toward retirees. Social Security income is not taxed. Withdrawals from retirement accounts are fully taxed. Wages are taxed at normal rates, and your marginal state tax rate is 5.90%.

What is NC Schedule S?

S-Corporation Shareholder Built-in Gains Tax 5. 5. Deferred Gains Reinvested Into an Opportunity Fund Under IRC Section 1400Z-2 2. 2. Interest Income From Obligations of States Other Than North Carolina 1.

What services are exempt from sales tax in North Carolina?

Goods that are subject to sales tax in North Carolina include physical property, like furniture, home appliances, and motor vehicles. Prescription Medicine, groceries, and gasoline are all tax-exempt. Some services in North Carolina are subject to sales tax.

What does purchase for use?

Use tax is a sales tax on purchases made outside one’s state of residence for taxable items that will be used, stored or consumed in one’s state of residence and on which no tax was collected in the state of purchase.

What is North Carolina use tax and when is it due?

North Carolina use tax is due if you purchased, leased or rented items inside or outside this State for storage, use, or consumption in North Carolina and did not pay the applicable sales and use tax at the time of purchase. Items subject to North Carolina use tax include tangible personal property, certain digital property and taxable services.

What items are subject to North Carolina use tax?

Items subject to North Carolina use tax include tangible personal property, certain digital property and taxable services. You must pay use tax to the Department when retailers, remote sellers, or facilitators fail to collect sales or use tax on taxable transactions. See N.C. Gen. Stat. § 105-164.6 for additional information about consumer use tax.

What is a D400 form in North Carolina?

An individual required to file Form D-400, North Carolina Individual Income Tax Return, must report the use tax liability on non-business purchases of taxable items, other than a boat, an aircraft, and food subject to the reduced rate of tax, on the individual’s income tax return.