Rates last verified: August 26th, 2026
Sources: North Carolina Department of Revenue; North Carolina Department of Information Technology; North Carolina General Statutes. Full citations at the bottom of this page.
North Carolina taxes telecom under its sales and use tax at the combined general rate, a single statewide figure that already includes the local share. Providers report gross receipts to the state on one return, cities and counties do not add telecom taxes of their own, and 911 funding runs through a flat monthly charge set by the state's 911 Board.
Quick Facts
| Item | North Carolina Treatment |
|---|---|
| Sales tax on telecom services | 7% combined general rate on gross receipts from telecommunications service and ancillary service |
| What the rate includes | The state general rate plus the local rates authorized for every county, collected as one statewide figure (G.S. 105-164.3) |
| Local telecom taxes | None separately; the combined general rate builds the local share in |
| 911 service charge | $0.55 per voice connection, per month, set by the North Carolina 911 Board (effective July 1, 2023) |
| Prepaid wireless 911 charge | $0.55 per retail transaction, collected by the seller, with a 5% administrative allowance |
| Internet access | Excluded from taxable gross receipts; also protected by the federal Internet Tax Freedom Act |
How North Carolina Taxes Telecom Services
Gross receipts from providing telecommunications service and ancillary service are subject to the 7% combined general rate of sales and use tax, reported on form E-500E. The combined general rate is defined in G.S. 105-164.3 as the state's general rate plus the sum of the local rates authorized for every county, so the local share is baked into the single statewide figure rather than assessed jurisdiction by jurisdiction.
That structure removes the mapping problem most states create. What it does not remove is the classification problem. The taxable base sweeps in flat-rate service, mobile telecommunications, customer access line charges, paging, voice mail, call forwarding, and installation charges for telecom services, while receipts from internet access, information services, directory advertising, and video programming sit outside it or follow different rates. On a bundled invoice, the line between those categories is where the tax risk concentrates.
911 And Other Per-Line Fees
North Carolina's 911 service charge is 55 cents per voice connection, per month. The North Carolina 911 Board sets the amount under G.S. 143B-1403, and the current figure took effect July 1, 2023, down from 65 cents. Providers bill it monthly per connection.
Prepaid wireless pays the same amount at the register: 55 cents per retail transaction occurring in the state, collected by the seller and reported to NCDOR on form E-500L. Sellers may keep an administrative allowance of 5% of what they collect. The 911 Board sets the prepaid amount to match the monthly charge, with changes taking effect only on July 1.
Taxability By Service Type
Per NCDOR, the 7% combined general rate applies to gross receipts from:
- Flat-rate local and long-distance service
- Mobile telecommunications service
- Customer access line charges and installation charges for telecom services
- Paging service
- Ancillary services such as voice mail, call forwarding, and conference bridging
Outside the telecom base (excluded or taxed under different rules):
- Internet access service and email services
- Information services
- Directory advertising and yellow-page listings
- Radio and television audio and video programming
- Billing and collection services performed for third parties
How CereTax Handles North Carolina
North Carolina trades jurisdiction complexity for classification complexity. One rate applies statewide, so the work is deciding which lines of an invoice are telecommunications or ancillary services at 7%, which are excluded, and which follow other rules entirely. CereTax applies North Carolina's taxability rules line item by line item across voice, data, and bundled services, keeps the 911 charge on the right connections, and holds an audit trail behind every calculation. If you serve customers in North Carolina, book a demo and bring a real invoice.
Sources
- North Carolina Department of Revenue, Telecommunications Service and Ancillary Service. Accessed August 25, 2026.
- North Carolina Department of Revenue, 911 Service Charge for Prepaid Wireless Telecommunications Service. Accessed August 25, 2026.
- North Carolina Department of Information Technology, 911 Fund. Accessed August 25, 2026.
- Section 105-164.3, North Carolina General Statutes, definitions (combined general rate). Accessed August 25, 2026.
- Section 143B-1403, North Carolina General Statutes, service charge for 911 service. Accessed August 25, 2026.
- Internet Tax Freedom Act, 47 U.S.C. § 151 note.
See how other states compare on the full telecom tax by state table.
