Is there sales tax on groceries in North Carolina?
Quick answer
Partly. North Carolina taxes grocery food at a reduced 0% state rate instead of the full 4.75%, and local rates may still apply on top.
Food for home consumption is exempt from the 4.75% state rate but still carries the 2% county food tax.
Rule summary
How North Carolina treats each category.
| Grocery food (home consumption) | Reduced state rate of 0% |
|---|---|
| Prepared and restaurant food | Taxable at the full combined rate (7%–7.25%) |
| Candy and soft drinks | Usually taxable even where groceries are exempt |
| Prescription medicine | Exempt |
Source: North Carolina Department of Revenue · rates as published for 2026
This page summarizes the general rule. Every state writes exceptions for specific products, and local jurisdictions can differ from the state treatment. Confirm your situation with the North Carolina Department of Revenue or a tax professional before relying on it for filing.
Combined rates in North Carolina
What a taxable purchase actually costs in North Carolina.
Frequently asked
Answers pulled from the same rule set.
- Is there sales tax on groceries in North Carolina?
- Partly. North Carolina taxes grocery food at a reduced 0% state rate instead of the full 4.75%, and local rates may still apply on top.
- Is prepared food taxed differently than groceries in North Carolina?
- Yes. North Carolina treats hot, ready-to-eat and restaurant food as a taxable retail sale even where unprepared grocery food is exempt or reduced.
- Are prescription drugs taxable in North Carolina?
- No. Prescription medicine is exempt from sales tax in North Carolina.
More North Carolina guides
Other North Carolina rules that change the total.