North Carolina does not have a sales tax holiday. The state ended its annual tax-free shopping weekend in 2013, and no replacement event has been enacted since. Shoppers pay the full combined state and local sales tax rate on every purchase year-round, with total rates currently ranging from 6.75% to 7.5% depending on the county.1North Carolina Department of Revenue. Current Sales and Use Tax Rates
Why the Tax-Free Weekend Ended
The holiday was repealed through Session Law 2013-316, a broad tax reform package that restructured North Carolina’s tax code beginning in January 2014.2North Carolina General Assembly. Session Law 2013-316 Instead of a few days of targeted relief each year, legislators lowered individual income tax rates permanently. The trade-off was framed as a year-round benefit for every taxpayer versus a weekend benefit for shoppers who happened to buy qualifying items during a narrow window.
Since then, no serious push has restored the holiday. Proposals in the 2025–2026 session address narrow exemptions on specific product categories, but nothing resembling the old broad tax-free weekend.3North Carolina General Assembly. House Bill 1079 If you have been waiting for the event to return before making a big purchase, there is nothing on the calendar to wait for.
What the Old Holiday Used to Cover
Under the former N.C. Gen. Stat. § 105-164.13C, the tax-free weekend set price ceilings on three categories, applied per item:
- Clothing and footwear priced under $100 each
- School instructional materials priced under $300 each
- Computers and peripherals priced under $3,500 each
The computer exemption produced the largest single-purchase savings. None of these exemptions exist for general consumers in North Carolina’s tax code today.
What Is Actually Exempt Year-Round
North Carolina still exempts several categories of essential goods every day of the year under N.C. Gen. Stat. § 105-164.13.4North Carolina Department of Revenue. Sale and Purchase Exemptions
Most groceries bought for home consumption are exempt from the 4.75% state sales tax, though a reduced 2% local tax still applies in most counties. Prepared meals, soft drinks, and candy are taxed at the full combined rate, so a bag of flour and a deli sandwich are treated differently at checkout.
Prescription medications and certain over-the-counter drugs dispensed by a pharmacist are fully exempt from sales and use tax. Medical equipment such as mobility devices and oxygen equipment used in daily life carries the same exemption. These are the closest thing to permanent, general-consumer tax relief in North Carolina.
Crossing State Lines or Shopping Online
Some residents drive into neighboring states during those states’ tax-free weekends, hoping to skip North Carolina’s tax on a large purchase. North Carolina imposes a use tax on items bought out of state and brought back for use, storage, or consumption at home.5NCDOR. Consumer Use Tax The use tax rate matches your county’s combined sales tax rate, so whatever you saved on the other state’s tax, you legally owe to North Carolina.
If you file a North Carolina income tax return on Form D-400, you report use tax on non-business purchases directly on that return. If you don’t file Form D-400, use Form E-554. Boats and aircraft have their own form, E-555, and groceries subject to the reduced 2% rate are also reported on Form E-554. The Department of Revenue can assess unpaid use tax during an audit.
Online purchases don’t offer an escape either. Any remote seller with more than $100,000 in gross sales delivered to North Carolina during the current or prior calendar year must collect and remit the tax at checkout.6North Carolina Department of Revenue. Frequently Asked Questions – Remote Sales Major marketplaces already collect it automatically. If a smaller retailer doesn’t, you owe the use tax yourself.
Neighboring States That Still Hold Tax-Free Weekends
If you live near the border, three neighboring states run their own holidays, though the use tax obligation above limits real savings on items you bring home.
South Carolina holds a 72-hour tax-free weekend each August, starting at 12:01 a.m. on the first Friday and running through Sunday.7South Carolina Department of Revenue. Tax Free Weekend Exempt items include clothing, footwear, school supplies, computers, software, printers, and certain bed and bath products. Business-use purchases, cosmetics, jewelry, and cell phones are excluded.
Tennessee typically runs its holiday in late July, covering clothing and school supplies priced at $100 or less per item and computers or tablets priced at $1,500 or less. Virginia holds an annual back-to-school holiday, usually in early August. Each state’s revenue department confirms exact dates a few months before the event.
These holidays exempt only that state’s sales tax. If you live in North Carolina and bring purchases home, your county’s use tax still applies to the full purchase price. The savings work out better for items you’ll use entirely in the other state than for back-to-school clothes your kids will wear at home.