North Carolina Sales Tax Guide for SaaS and E-Commerce Businesses 2025
North Carolina imposes a 4.75% state sales tax, plus local county taxes often bringing total rates to about 6.75%–7.5%. The state taxes certain digital property delivered or accessed electronically, but SaaS (remote access software) is generally not taxable under current NC law and rulings. (NCDOR – Certain Digital Property)
Last updated: October 2025
Quick Reference: North Carolina Sales & Use Tax 2025
| Topic | Details |
|---|---|
| State base sales tax rate | 4.75% (NCDOR – Rates) |
| Local rates | 2% - 3% (NCDOR – Rates) |
| Economic nexus threshold | $100,000 in gross sales into NC (200-txn removed) (NCDOR – Remote Sales) |
| Is SaaS taxable? | No. Remote access software is exempt (NCDOR – PLR 2021-0005) |
| Filing due date | 20th day of the month after reporting period |
| Registration portal | NC DOR eServices / Contact |
| Tax agency | NCDOR – Sales & Use Tax |
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SaaS & Digital Products in North Carolina
North Carolina distinguishes between “certain digital property” and software accessed remotely. Remote access software (SaaS) is not taxable because the customer does not take possession of a copy.
- Not taxable: SaaS delivered via remote access
- Taxable: Specified digital property (music, video, e-books)
- Bundled offerings: If SaaS is bundled with taxable property and charges aren’t separated, the entire bundle may be taxed
Sources:
E-Commerce & Tangible Goods in North Carolina
| Category | Taxable? | Notes |
|---|---|---|
| Tangible goods | Yes | Physical goods delivered into NC are taxed |
| SaaS | No | Exempt when only delivered via remote access |
| Prewritten software | Yes | Taxed if considered “certain digital property” or delivered physically |
| Custom software | No | Exempt when specifically built for one client |
| Digital goods | Yes | Taxed as “certain digital property” under NC law |
Source: NCDOR – Certain Digital Property
Economic Nexus: Remote Seller Rules
Remote sellers must collect NC sales tax if they exceed $100,000 in gross sales into the state in the current or prior year (no transaction threshold).
Details: NCDOR – Remote Sales
For assistance, contact through NC eServices Contact.
Marketplace Facilitator Rules
Marketplace facilitators selling taxable goods or digital property must collect and remit NC sales tax once nexus is met.
Relevant links:
Filing & Due Dates
- File via NC DOR eServices
- Filing frequency (monthly, quarterly, etc.) depends on your tax liability
- Returns generally due on the 20th day after the reporting period
- Even if all sales are exempt, zero returns may still be required
Detailed guidance: Filing Frequency & Due Dates
Penalties & Compliance Notes
- Penalties and interest apply on late filing or payment
- Separate taxable digital items from exempt SaaS in your invoices
- Maintain contracts, invoices, and documentation of bundled sales allocation
FAQs: North Carolina Sales Tax for SaaS & E-Commerce
Is SaaS taxable in North Carolina?
No. Remote access software without copy transfer is exempt.
Are digital goods taxable?
Yes, under the “certain digital property” rules.
What is the nexus threshold in NC?
$100,000 in gross sales (no transaction limit).
Do marketplace facilitators have to collect?
Yes, for taxable goods or digital property once nexus is reached.
How do I file sales tax returns?
Via NC DOR eServices following filing frequency guidelines.
Official North Carolina Resources
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