Mecklenburg County’s New 1% Sales Tax Increase Goes Into Effect Next Month

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Shopping and dining in Charlotte are about to get more expensive. Beginning July 1, Mecklenburg County’s new 1% local sales tax officially takes effect, increasing the total sales tax rate from 7.25% to 8.25%.

The tax increase was approved by voters during a countywide referendum on Nov. 4, 2025. County leaders say the additional revenue will help fund transportation projects, including road improvements and transit expansion.

Starting Tuesday, the new 8.25% combined sales tax rate will apply to most purchases of tangible personal property, certain digital products, and other transactions already subject to North Carolina sales tax.

The new tax rate is made up of:

  • State tax: 4.75%
  • County tax: 2.00%
  • Transit tax: 0.50%
  • New additional county tax: 1.00%
  • Total sales tax: 8.25%

The additional 1% tax does not apply to several items that are already taxed at special rates, including qualifying food, aircraft, boats, manufactured and modular homes, electricity, piped natural gas, telecommunications services, aviation fuel, video programming, and spirituous liquor.

The change also affects Mecklenburg County businesses. Retailers must begin collecting the new tax rate on all eligible sales beginning July 1 and use updated state sales tax forms for reporting periods after the change takes effect. Businesses that file electronically will see the new rate automatically reflected in the state’s online filing system.

For shoppers, the increase means paying an additional $1 in sales tax for every $100 spent on most taxable purchases. A $500 purchase, for example, will now cost an extra $5 in sales tax compared to last month.

The new tax makes Mecklenburg County one of the higher-taxed shopping destinations in North Carolina, with officials expecting the additional revenue to support long-term transportation investments across the county.