Survey of Anticipated Pay Changes
In April 2023, NCACC was pleased to partner with the North Carolina League of Municipalities to survey local governments about their planned salary changes for FY 2023-24. 266 local governments responded to the survey, including 46 counties. NCACC thanks all local governments who responded to the survey. We appreciate your time in helping to make this the most useful and timely report possible for you and your peers.
Budget and Tax Survey
NCACC conducts the Budget and Tax Survey each year to gather financial information on county budgeted expenditures and tax resources, including in-depth information on school appropriations. Please note that these are self-reported data, and do not reflect audited expenditures, revenues, or other county information.
The FY 2021-2023 two-year Budget and Tax Survey responses are now available, although not complete. Several counties continue to work on their responses and the data on this page will be updated periodically as additional responses become available. NEW: The data was last updated June 21, 2023.
Property Taxes
Property taxes are the largest source of revenue for North Carolina counties. North Carolina General Statute Chapter 159 requires county commissioners to annually set a property tax rate — for information on rates from all 100 counties, click the button below.
Tax Rate Survey
As County Commissioners pass their budgets and set property tax rates prior to the start of a new fiscal year, the NCACC collects the tax rates set by all 100 counties. In addition to the tax rate, the Tax Rate Survey includes the revenue neutral tax rate (if the county underwent a revaluation) and state maps to display rates by county.
These figures include base tax rates plus any countywide applied special rates. Revenue neutral rates are also reported.
Fifteen counties had a tax rate change in 2020-21, with four counties increasing and eleven counties decreasing their rate. Twenty-six counties had a revaluation in 2019, and 12 counties have one in 2020.
The average property tax rate is now .6760, compared to .6785 last year, a 0.35% decrease statewide.
- County Property Tax Rates
County 2020-21 Property Tax Rate 2019-20 Property Tax Rate Alamance County 0.67 0.67 Alexander County 0.79 0.79 Alleghany County 0.597 0.597 Anson County 0.777 0.777 Ashe County 0.443 0.443 Avery County 0.55 0.55 Beaufort County 0.635 0.635 Bertie County 0.865 0.865 Bladen County 0.82 0.82 Brunswick County 0.485 0.485 Buncombe County 0.529 0.529 Burke County 0.695 0.695 Cabarrus County 0.74 0.74 Caldwell County 0.63 0.63 Camden County 0.74 0.74 Carteret County 0.33 0.31 Caswell County 0.735 0.735 Catawba County 0.575 0.575 Chatham County 0.67 0.67 Cherokee County 0.46 0.52 Chowan County 0.755 0.755 Clay County 0.43 0.43 Cleveland County 0.72 0.72 Columbus County 0.805 0.805 Craven County 0.5494 0.5494 Cumberland County 0.799 0.799 Currituck County 0.48 0.48 Dare County 0.4005 0.47 Davidson County 0.54 0.54 Davie County 0.738 0.738 Duplin County 0.735 0.735 Durham County 0.7122 0.7122 Edgecombe County 0.95 0.95 Forsyth County 0.7435 0.7535 Franklin County 0.805 0.805 Gaston County 0.83 0.84 Gates County 0.79 0.79 Graham County 0.65 0.65 Granville County 0.84 0.84 Greene County 0.786 0.786 Guilford County 0.7305 0.7305 Halifax County 0.76 0.77 Harnett County 0.75 0.75 Haywood County 0.585 0.585 Henderson County 0.561 0.561 Hertford County 0.84 0.84 Hoke County 0.75 0.75 Hyde County 0.77 0.77 Iredell County 0.5375 0.5275 Jackson County 0.38 0.38 Johnston County 0.76 0.76 Jones County 0.77 0.79 Lee County 0.775 0.775 Lenoir County 0.845 0.845 Lincoln County 0.599 0.599 Macon County 0.3747 0.3747 Madison County 0.5 0.55 Martin County 0.81 0.81 McDowell County 0.5875 0.5875 Mecklenburg County 0.6169 0.6169 Mitchell County 0.58 0.58 Montgomery County .62* 0.62 Moore County 0.51 0.51 Nash County 0.67 0.67 New Hanover County 0.555 0.555 Northampton County 0.91 0.915 Onslow County 0.705 0.705 Orange County 0.8679 0.8679 Pamlico County 0.625 0.625 Pasquotank County 0.77 0.77 Pender County 0.645 0.645 Perquimans County 0.59 0.59 Person County 0.72 0.73 Pitt County 0.6797 0.721 Polk County 0.5494 0.5494 Randolph County 0.6327 0.6327 Richmond County 0.83 0.83 Robeson County 0.77 0.77 Rockingham County 0.695 0.695 Rowan County 0.6575 0.6575 Rutherford County 0.597 0.597 Sampson County 0.825 0.825 Scotland County 1 1 Stanly County 0.67 0.67 Stokes County 0.66 0.66 Surry County 0.582 0.582 Swain County 0.36 0.36 Transylvania County 0.636 0.636 Tyrrell County 0.94 0.88 Union County 0.7309 0.7309 Vance County 0.89 0.89 Wake County 0.6 0.7207 Warren County 0.81 0.79 Washington County 0.855 0.855 Watauga County 0.403 0.403 Wayne County 0.6635 0.6635 Wilkes County 0.66 0.66 Wilson County 0.73 0.73 Yadkin County 0.66 0.66 Yancey County 0.6 0.6 0.67607373737374 0.678478
Sales Taxes
Sales taxes are the second largest revenue source for North Carolina counties, making up approximately 14% of county General Fund revenue. Counties set their own sales tax rates with voter approval, but the state collects and redistributes local sales tax dollars. NCACC staff are available to guide counties on sales tax referenda, revenue projections, and other sales tax issues.
- Sales Tax Articles and Rates
North Carolina has a 4.75% state sales tax rate. In addition, counties are authorized by North Carolina General Statute Chapter 105, Articles 39-46 to levy up to 5 sales taxes, with rates that range from 0.25% to 1%.
Article Rate Distribution Restrictions Shared with Towns Counties Levying Notes Article 39 1% (1¢) Point of Sale N/A Yes 100 Counties Article 39, 40, and 42 together are commonly referred to as "The First 2¢" Article 40 0.5% (1/2¢) Per Capita Counties must use 30% on school capita. Yes 100 Counties Article 39, 40, and 42 together are commonly referred to as "The First 2¢" Article 42 0.5% (1/2¢) Point of Sale Counties must use 60% on school capita. Yes 100 Counties Article 39, 40, and 42 together are commonly referred to as "The First 2¢" Article 43 0.25% (1/4¢) or 0.5% (1/2¢) Point of Sale 100% to transit. Yes, if a city runs a transit system. 4 Counties Rate is 0.5% for Durham, Forsyth, Guilford, Mecklenburg, Orange, and Wake Counties (0.25% in all other counties). Article 46 0.25% (1/4¢) Point of Sale N/A No 46 Counties All 100 counties levy the first 3 sales taxes, usually called “the First 2¢.” In addition, nearly 50 counties levy at least one of the two additional taxes:
Tax Rate Counties (As of January 1, 2023) 6.75%
4.75% State; 2.00% First 2¢Alamance, Alleghany, Avery, Beaufort, Bladen, Brunswick, Burke, Caldwell, Camden, Carteret, Caswell, Chowan, Cleveland, Columbus, Craven, Currituck, Dare, Davie, Franklin, Gates, Granville, Guilford, Henderson, Hoke, Hyde, Iredell, Johnston, Lenoir, Macon, McDowell, Mitchell, Nash, Northampton, Pamlico, Pender, Perquimans, Person, Polk, Richmond, Scotland, Stokes, Transylvania, Tyrrell, Union, Vance, Warren, Washington, Watauga, Wayne, Wilson, Yadkin, Yancey 7.00%
4.75% State; 2.00% First 2¢; 0.25% Article 46Alexander, Anson, Ashe, Bertie, Buncombe, Cabarrus, Catawba, Chatham, Cherokee, Clay, Cumberland, Davidson, Duplin, Edgecombe, Forsyth, Gaston, Graham, Greene, Halifax, Harnett, Haywood, Hertford, Jackson, Jones, Lee, Lincoln, Madison, Martin, Montgomery, Moore, New Hanover, Onslow, Pasquotank, Pitt, Randolph, Robeson, Rockingham, Rowan, Rutherford, Sampson, Stanly, Surry, Swain, Wilkes 7.25%
4.75% State; 2.00% First 2¢; 0.50% Article 43Mecklenburg, Wake 7.50%
4.75% State; 2.00% First 2¢; 0.50% Article 43; 0.25% Article 46Durham, Orange
- Medicaid Hold Harmless Payments
In 2007, the North Carolina General Assembly enacted S.L. 2007-323, which granted “Medicaid relief” to counties, ended county authority to levy the Article 44 sales tax, and created Medicaid hold harmless payments. NCACC has compiled several resources to help counties understand these payments
- Understanding Medicaid Hold Harmless Payments (presentation)
- School of Government Local Finance Bulletin
- Department of Revenue Medicaid Hold Harmless data (scroll way down)
Local Sales Tax Referenda
To levy either the Article 43 Transit Sales Tax or the Article 46 Optional Quarter Cent Sales Tax, a county Board of Commissioners must receive voter permission by holding a referendum. NCACC is available to guide counties on the referendum process. In addition, the section below provides an FAQ on the local option sales tax, a sample Board of Commissioners resolution, and historical referenda results from across the state.
- Holding a Sales Tax Referendum
- Frequently Asked Questions
- Model Resolution (PDF)
- Sample Educational Materials (PDF)
Occupancy Taxes
Most counties levy an occupancy tax on rental accommodations, such as hotel rooms and vacation rentals. Although the General Statutes broadly outline occupancy tax guidelines (G.S. 153A-155), they do not authorize the tax. Instead, each county must first receive explicit taxing authority from the General Assembly. Occupancy tax collections are remitted to the local government; usually, the authorizing legislation requires the county to establish a Tourism Development Authority (TDA) to manage and allocate most or all of the tax proceeds.
- Sample Occupancy Tax Resolutions
In counties that have received authority from the General Assembly to levy or modify an occupancy tax, the Board of Commissioners must first pass an authorizing resolution and hold a public hearing. NCACC has compiled these sample resolutions from three counties as examples.
Contact Information
For more information about NCACC’s budget, tax, and finance information or for help, please contact Fiscal and Policy Research Director Denise Canada at (919) 715-0045.