Does North Carolina charge sales tax on services?

by TaxJar November 30, 2023


Please note: This blog was originally published in 2021. It’s since been updated for accuracy and comprehensiveness.

The majority of U.S. states require merchants to charge sales tax on tangible personal property (TPP), otherwise known as physical goods. Many states also implement sales and use tax on digital goods and SaaS. Because the economy has shifted over time from a manufacturing economy to a service economy, states are now looking to generate revenue by taxing services.

Here’s what merchants need to know about taxing services in North Carolina.

Are services taxable in North Carolina?

Services in North Carolina are generally not taxable, with important exceptions:

Please keep in mind that this is a guideline, and you should consult with a sales tax professional to determine if the services your business provides should be taxed. For an in-depth look at sales tax in North Carolina, TaxJar’s guide to sales tax in North Carolina and the North Carolina Department of Revenue has more details.


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