North Carolina sits on the Atlantic coast in the eastern United States. Its 140,000 km² border South Carolina and Georgia to the south, Tennessee to the west and Virginia to the north. With just over ten million residents, North Carolina is the ninth most populous US state. Raleigh, the capital, is the Tar Heel State's second-largest city after Charlotte.
North Carolina's economy runs on low business costs, groundbreaking university research and outstanding infrastructure. And its high quality of life draws talented people.
In the past five years alone, German companies have invested more than a billion dollars in North Carolina, creating over 8,500 new jobs. Bayer, Daimler and Deutsche Bank are among the European names with a presence in the state.
A first-class business climate
North Carolina keeps winning awards for its business-friendly climate. Starting in 2017, Forbes named it the "Best State for Business" three years in a row.
The Tar Heel State has a proven track record of cutting and simplifying business taxes. At 2 percent (as of 2026), it has the lowest corporate tax rate of any US state that levies a corporate tax at all. The goal: helping businesses grow.
Construction costs 16 percent below the national average, electricity ten percent cheaper than the national average, and living costs up to 12 percent below the national average in major metro areas: North Carolina scores brilliantly on many key indicators. Its business costs are among the lowest in the nation, making it one of the most profitable places for entrepreneurs and companies.
Recent tort reform, streamlined procedures and stronger business courts have earned North Carolina awards and rankings among the best legal climates in the US. Legal hurdles don't hold companies back here; they move faster and can reach the next level sooner.
A prime location
Its unbeatable East Coast location puts almost half of the US population within a day's drive. An excellent road and rail network moves goods efficiently to destinations all across North America.
The world's seventh busiest airport is in Charlotte, North Carolina. Almost every major city in the world is reachable with a single connection. Piedmont Triad International Airport (GSO) is a leading air cargo center and home to the FedEx Mid-Atlantic Air Hub. The state also has ten commercial service airports and more than 100 general aviation facilities.
North Carolina's coast also has two deepwater ports with fast turnaround times and capacity for ships carrying up to 14,000 standard 20-foot containers. On top of that, an inland port in Charlotte sits at the heart of the Southeast's manufacturing and distribution hubs.
Highly skilled and innovative
North Carolina is home to three top-ranked research universities. Its community college system for workforce training spans 58 institutions.
All across the Tar Heel State, talented people are patenting new ways to work smarter. With patent growth of 70 percent over the past ten years, North Carolina companies lead the nation in innovation. Rich resources, a highly skilled workforce and renowned education systems all feed the state's forward-looking ingenuity.
Income tax in North Carolina
North Carolina levies a flat income tax of 3.99 % (tax year 2026; 2025: 4.25 %). On top of that, federal income tax is due.
Corporate tax in North Carolina
North Carolina levies a corporate tax of 2 % (tax year 2026). On top of that, federal corporate tax is due.
Sales tax in North Carolina
The US has no European-style VAT. Instead, states, counties and municipalities levy a local sales tax on sales of goods (but not services).
Sales tax rate in North Carolina
North Carolina's state sales tax is 4.75%. Municipalities and counties add an average of 2.23%, so the combined rate averages 6.98%.
North Carolina nexus laws & sales tax
Learn more about economic nexus laws and sales tax.
Effective date
November 1, 2018
Included transactions:
Gross sales sourced to North Carolina (the total sales price of tangible personal property, digital property and services sourced to the state, unless the context requires otherwise).
Treatment of exempt sales:
Exempt sales and exempt services count toward the threshold
Trigger:
Sales only (the former 200-transaction rule was repealed in 2024)
Sales/transaction threshold:
$100,000, including marketplace sales
Evaluation period:
The threshold applies to the previous or current calendar year
Additional information:
- Registration requirements: North Carolina requires a remote seller to register to collect and remit North Carolina sales tax within 60 days of crossing the economic nexus threshold. For more information, see Remote Sales.
- Information for remote sellers
- SB56
North Carolina marketplace sellers & sales tax
Learn more about registration requirements for marketplace sellers
Effective date for marketplace facilitators:
February 1, 2020
Economic nexus threshold:
More than 100,000 US dollars in gross sales in North Carolina in the previous or current calendar year (the former 200-transaction rule was repealed in 2024). Remote sellers should include marketplace sales when calculating the threshold. Marketplace facilitators include all sales made through the marketplace when calculating the threshold.
Registration requirements:
- Remote multichannel sellers: Once you cross the economic nexus threshold, you must register with the North Carolina Department of Revenue and collect North Carolina sales tax on sales not taxed by a marketplace facilitator.
- Remote marketplace sellers: You may need to register once you cross the economic nexus threshold. Contact the North Carolina Department of Revenue for more information.
- In-state multichannel sellers: You must register with the Department of Revenue and collect tax on sales not taxed by a marketplace facilitator.
- In-state marketplace sellers: You may need to register; contact the Department of Revenue for more information.
- Learn more here.
For an overview of every state, see our directory US states at a glance. Our guide Which US state is best for your company? helps you pick the right state, and the guide to forming a US company walks you through the process. And if you want to run your US LLC tax-free without a US permanent establishment, our sister site zerotax.llc is the place to go.
How we help you in North Carolina:
If North Carolina is going to be your market, it starts with the right structure. Under US Company Formation you'll find entity types and states of formation with prices; in a consultation we work out which of them fits you.