Mecklenburg County Businesses: Sales Tax Rate Is Going Up July 1, 2026

If your business sells taxable goods or services in Mecklenburg County, mark your calendar. Starting July 1, 2026, the total sales and use tax rate in Mecklenburg County will increase from 7.25% to 8.25%, following the levy of an additional 1.00% county rate authorized by the North Carolina Legislature.

What Is Changing?

The new combined rate for Mecklenburg County will break down as follows:

• State Rate: 4.75%
• County Rate: 2.00%
• Transit Rate: 0.50%
• Additional County Rate (new): 1.00%
• Total Rate: 8.25%

Retailers are required to begin collecting the updated rate on all retail sales and leases sourced to Mecklenburg County as of 7/1/2026. Purchasers should be aware that if a retailer does not collect the tax at the point of sale, the purchaser becomes liable for remitting the use tax directly.

What Is NOT Affected?

The additional 1.00% does not apply to certain items that are subject to their own specific tax rates. Those excluded items include:

• Qualifying food items (taxed at 2%)
• Aircraft and qualified jet engines (taxed at 4.75%)
• Manufactured homes and modular homes (taxed at 4.75%)
• Boats (taxed at 3%)
• Electricity and piped natural gas (taxed at 7%)
• Aviation gasoline and jet fuel (taxed at 7%)
• Video programming (taxed at 7%)
• Telecommunications and ancillary services (taxed at 7%)
• Antique spirituous liquor and spirituous liquor other than mixed beverages (taxed at 7%)

Updated Tax Returns

New sales and use tax return forms will be required for all filing periods beginning on or after July 1, 2026. Updated forms are expected to be available from NCDOR by August 1, 2026. If you file electronically, the NCDOR will update its online filing system. Businesses that receive paper booklets by mail can expect updated forms to arrive in July or August. Forms will also be available directly on the NCDOR’s website or by calling 1-877-252-3052.

What Should You Do Now?

We encourage all Mecklenburg County retailers and businesses with taxable transactions sourced to the county to take the following steps ahead of the July 1 deadline:

• Update your point-of-sale systems, invoicing software, and accounting platforms to reflect the new 8.25% rate
• Review any existing contracts or lease agreements that include sales tax provisions
• Confirm whether any products or services you sell fall into the excluded categories listed above
• Communicate the upcoming change to your finance, billing, and operations teams

We Are Here to Help

State and local tax changes like this one can have a ripple effect across your operations, pricing, and compliance obligations. The GreerWalker state and local tax team is available to help you assess the impact on your business, update your compliance processes, and ensure you are well-prepared before the July 1 effective date.

Please reach out to your GreerWalker advisor or contact us through our website to discuss how this change may affect your business.

Source: Important Notice: Mecklenburg County Sales and Use Tax Increase (ncdor.gov)