North Carolina Sales Tax Nexus Requirements 2026

What is Sales Tax Nexus in North Carolina?

Sales tax nexus is a connection between your business and North Carolina that requires you to collect and remit sales tax. North Carolina was one of the first states to implement economic nexus following the 2018 Wayfair decision.

The state has a relatively straightforward sales tax system compared to some other states. With the 2024 simplification removing the transaction threshold, compliance is now even more straightforward for remote sellers.

Once you establish nexus, you must register with the NC Department of Revenue, collect the appropriate combined state and local tax rate, and file returns according to your assigned schedule.

NC Economic Nexus Rules (Updated 2024)

North Carolina's economic nexus law has evolved since its original enactment in 2018. The current threshold is simplified and seller-friendly.

Current Economic Nexus Threshold

• Revenue Threshold: $100,000 in gross sales into North Carolina during the previous or current calendar year
• Transaction Threshold: None (removed July 1, 2024)
• Measurement Period: Previous or current calendar year

History of NC Economic Nexus

Understanding the history helps ensure you're using current information:

• November 1, 2018: Original law took effect with $100,000 OR 200 transactions threshold
• July 1, 2024: Transaction threshold removed; now only $100,000 revenue threshold applies

Calculating Your Threshold

When determining if you meet North Carolina's threshold:

• Include gross sales of tangible personal property delivered into NC
• Include sales of digital goods (which are taxable in NC)
• Include both taxable and exempt sales in your calculation
• Exclude sales made through marketplace facilitators who collect on your behalf

When to Start Collecting

Once you exceed the $100,000 threshold, you should register and begin collecting NC sales tax. The state allows a reasonable period to register after crossing the threshold, typically 30-60 days.

Physical Presence Nexus in North Carolina

Physical presence creates nexus regardless of sales volume:

• Having an office, warehouse, or distribution center in NC
• Employing workers in NC (including remote employees)
• Storing inventory in NC (including Amazon FBA inventory)
• Owning or leasing property in NC
• Having independent sales representatives in NC
• Providing services or installation in NC
• Delivering goods using your own vehicles into NC

Amazon FBA in North Carolina

Amazon operates fulfillment centers in Charlotte, Garner, Kernersville, and other NC locations. If you use FBA and Amazon stores your inventory in North Carolina, you have physical presence nexus. While Amazon collects as a marketplace facilitator, you may have registration and filing obligations.

Do I Have Nexus in North Carolina?

How to Register for NC Sales Tax

1. Visit the NC Department of Revenue website
2. Access the Business Registration system
3. Complete Form NC-BR online
4. Provide your federal EIN and business information
5. Submit the application (no fee required)
6. Receive your sales tax registration number (1-2 weeks)

For a detailed walkthrough, see: How to Register for NC Sales Tax

Filing Requirements

NC assigns filing frequency based on average monthly tax liability:

• Monthly: Average liability over $100 per month
• Quarterly: Average liability $20-$100 per month
• Annual: Average liability under $20 per month

Monthly and quarterly returns are due by the 20th of the month following the reporting period. Annual returns are due January 20th.

NC offers a collection allowance of 1% of the first $6,000 in state and local taxes collected per month (maximum $60 per month) as an incentive for timely filing.

See: NC Sales Tax Filing Deadlines

Penalties for Non-Compliance

• Late Filing Penalty: 5% of tax due per month, up to 25%
• Late Payment Penalty: 10% of tax due
• Interest: Set quarterly by the NC Department of Revenue
• Failure to File: $50 minimum penalty

See: NC Sales Tax Penalties