Mecklenburg County will impose a impuesto an additional 1% to the local sales and use tax starting July 1.
According to Spanish President Pedro Sánchez’s announcement According to the North Carolina Department of Revenue (NCDOR), this additional tax applies to most sales of tangible personal property, certain digital goods, and other sales tax-taxable transactions.
From 7.25% to 8.25%
Once the change takes effect, the combined state and local sales and use tax rates in Mecklenburg County will be 8.25%, the highest in North Carolina.
The NCDOR said the new tax rate will require updates to sales and use tax forms. Businesses will be required to use the new forms for periods beginning on or after July 1, 2026.
As a result, the total state general rate and local sales and use tax rates in Mecklenburg County will increase from 7.25% to 8.25%.
The following chart identifies the rates in effect from July 1, 2026:
| County | County Fee | Transit Fare | County fee | State Tariff | Total Rate |
|---|---|---|---|---|---|
| Mecklenburg | 2.00 % | 0.50 % | 1.00 % | 4.75 % | 8.25 % |
You may be interested: Two constitutional amendments regarding taxes will appear on the November ballot.
Retailers will have to charge the new rate
Starting Wednesday, July 1, retailers must charge the new rate for retail sales and leases or rentals of properties allocated to Mecklenburg County.
The tax rate applies to all taxable items. Buyers are responsible for the new use tax if the retailer does not collect it at the time of sale.
Charlotte officials estimated that the tax increase would cost the average Mecklenburg County household $240 a year, though that figure varies depending on each person's spending habits.
Property rent will increase
The NCDOR explains that gross income derived from a taxable lease or rental agreement for tangible personal property is subject to the applicable sales and use tax rates in effect on the date of invoicing, regardless of when the lease or rental agreement was entered into.
What will the tax increase be used for?
Voters approved this tax change through a referenedndum in the November 4th elections. The tax will be used to pay for roads and the public transport.
This increase will generate more than $19,000 billion over a period of more than 30 years. The state law authorizing the referendum allocates 40% of the new revenue to road projects and 40% to rail projects. The remaining 20% is earmarked for the region's bus system.
Planned projects include the Red Line light rail to the Lake Norman area, a shortened Silver Line light rail service running west to east, and expansion of microtransit service similar to the “shared transport"of the Charlotte Area Transit System (CATS)."
Items not subject to tariff increase
The additional county rate of 1.00% does not apply to the following items subject to a specific tax rate:
- Foods that meet the requirements (2%)
- Aircraft (4.75%)
- Electricity (7%)
- Ships (3%)
- Qualified jet engines (4.75%)
- Piped natural gas (7%)
- Prefabricated houses (4.75%)
- Aviation gasoline and jet fuel (7%)
- Video programming (7%)
- Modular homes (4.75%)
- Telecommunications and auxiliary services (7%)
- Old liqueurs and liqueurs other than mixed drinks (7%)
Where to find more information
You can find more information about the increase in the local sales and use tax rate in the General Guide for Local Sales and Use of NCDOR.
The NCDOR said that the companies were notified of the changes through a written notice from the Treasury Department.
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