The online filing and payment system allows you to electronically file Form E-500, Sales and Use Tax Return, and accompanying schedule Form E-536, Schedule of County Sales and Use Taxes. The system is easy to use, convenient, and secure. We strongly encourage you to use the online filing and payment system. The Department does not mail the paper sales and use coupon booklets to users of the online filing and payment system.
Enter your first and last name, email address, and telephone number, including area code, in the appropriate fields. We will use the email address to acknowledge receipt of your return,payment information, or both, and to deliver tax documents and tax information to all registered taxpayers that use the online filing and payment system. You must have an email address to use the online filing and payment system.
Enter your sales and use tax account ID or your Streamlined Sales Tax ID number.
If you registered directly with the Department, you should enter your sales and use tax account ID number. Your sales and use tax account ID number is the 9-digit number issued to you by the Department of Revenue at the time of registration. You can find your sales and use tax account ID number on your registration certificate or coupon booklet. You may also find your sales and use tax account ID number by entering your complete business name in the Department of Revenue's Sales and Use Taxpayer Database.
If you registered through the Streamlined Sales Tax Registration System, you may enter your Streamlined Sales Tax (SST) ID number or sales and use tax account ID number. Your SST ID number is a 9-character ID number beginning with "S" followed by eight numbers. You may find your SST ID number by entering your complete business name in the Department of Revenue's Sales and Use Taxpayer Database.
Do not enter your Social Security Number or Federal Identification Number on this screen. You will be asked for your Social Security Number or Federal Identification Number on a later screen. If you need additional assistance finding your sales and use tax account ID or SST ID number, call toll-free at 1-877-308-9103.
Verify that the information displayed on the screen is correct. You should verify that your sales and use tax account ID or SST ID number, your legal/business name, and any trade names displayed are correct. If the account information displayed is correct, select NEXT to continue.
If you entered an incorrect sales and use tax account ID or SST ID number, enter the correct number, and select RE-SUBMIT.
If your legal name or trade name has changed, complete Form Form NC-AC, Business Address Correction. You may complete the form online. The Department will update your account information. If your sales and use tax account ID or SST ID number is correct and you complete Form NC-AC, you may select NEXT to continue even though your legal name or trade name has changed.
You must select one of the following options by selecting the appropriate circle on the screen.
Only North Carolina State Agencies can use the Core Banking System (CB$). A State Agency must
first register for the Core Banking System
by contacting the State Treasurer's Core Banking Help Desk to select to pay by this option.
To upload your sales and use tax return by EDI, enter the filename and location in the space provided and select SUBMIT to continue.
If you received an error message stating that a "fatal error was found," the EDI file you entered cannot be uploaded at this time due to the problem shown. You may correct the error and attempt to upload the file later or you may enter another filename. For additional assistance, contact the E-File and Development Unit Monday through Friday between the hours of 8:00 am and 4:00 pm EST toll free at 1-877-308-9103. After you select option 3 from the main menu, select option 1 and then option 2.
If you receive this screen, the system discovered an error in the EDI file that you uploaded. Select EDIT to view the return and schedules, if applicable, and correct the error. You must correct the error before you will be able to file the EDI return and complete your transaction.
If you receive this screen, you have successfully uploaded an EDI file and the system has not detected any errors. If you would like to view or make changes to the return and schedules, if applicable, select EDIT. If your return shows a balance of tax due, select PAY to enter your payment information through bank draft. If your return shows zero tax due, select CONFIRM to review and submit your return. If you chose to pay by EFT ACH Debit or ACH Credit, you must make your payment through the EFT system.
Select the period ending date to which your return or payment should be applied. If you are a monthly with prepayment taxpayer and you are filing a return, enter the period ending date for the current tax period. If you are a monthly with prepayment taxpayer and you are making dual payments only, enter the period ending date to which the current tax due should be applied. The system will automatically assign the period ending date for your prepayment.
Enter either your 9-digit Social Security Number (Sole Proprietor) or 9-digit Federal Identification Number (Corporation, Partnership, and LLC) that corresponds with the Sales Tax Account ID or SST ID Number you entered previously.
Note for Prior Period Returns: If you are filing a return for a tax period ending prior to July 1, 2026, due to annual revisions of the Sales and Use tax form, the line numbers shown on your form may not match those shown below. Further, if you are filing a return for a tax period ending prior to July 1, 2025, tax rates, tax maximums, and exemptions may be different from those shown in these instructions. If you have questions, please contact the Department of Revenue toll-free at 1-877-308-9103.
Line 1 - NC Gross Receipts: Enter the total amount of gross receipts from your business operations that are sourced to North Carolina.
Do not include any sales and use taxes collected. You are not required to include gross receipts from real property contracts.
Line 2 - Sales for Resale: Enter the total amount of sales of items sold for resale, sublease, or subrent.
Do not include this amount on Line 3 or later lines.
Line 3 - Receipts Exempt from State Tax: Enter the total amount of sales and gross receipts exempt from State sales and use tax.
Do not include sales entered on Line 2.
Examples of sales exempt from sales and use tax include:
Purchases for Use Column - Lines 4 through 6:
On Lines 4-6 of the "Purchases for Use" column, you should enter the total purchase price of taxable items you purchased inside or outside of North Carolina for storage, use, or consumption in North Carolina from vendors on which the State rate of tax was not collected by the vendors.
Do not include items you purchased for resale.
Enter the amount on the appropriate line as follows:
Line 4 - Enter the amount from your taxable purchases of items not subject to another rate of State tax.
Line 5 - Enter the amount from your taxable purchases of boats. The maximum taxable purchase price of each boat, including all accessories attached at the time it was delivered to you, is $50,000.
Line 6 - Enter the amount from your taxable purchases of modular homes or manufactured homes. The taxable amount is fifty percent (50%) of the purchase price of each modular home or manufactured homes, including all accessories attached when delivered to you.
Purchases for Use Column - Lines 7 through 12: On Lines 7-12 of the "Purchases for Use" column, you should enter the total purchase price of taxable items you purchased inside or outside North Carolina for storage, use, or consumption in North Carolina from vendors on which the appropriate county rate of tax was not collected by the vendors.
Do not include purchases of an aircraft, a manufactured home, a modular home, or a qualified jet engine.
Enter the amount on the appropriate line as follows:
Line 7 - Enter the amount of your purchases of food products exempt from State tax, but subject to the local 2% rate of food tax.
Do not include these purchases on lines 8, 9, 10, 11 or 12.
Line 8 - Enter the amount of your purchases for storage, use, or consumption in a county imposing a 2% local rate of tax.
Counties imposing a 2% local rate of tax are all counties other than those listed for Line 9.
Line 9 - Enter the amount of your purchases for storage, use, or consumption in a county imposing a 2.25% local rate of tax.
The counties imposing a 2.25% local rate of tax are: Alexander, Alleghany, Anson, Ashe, Bertie, Buncombe, Cabarrus, Catawba, Chatham, Cherokee, Clay, Cumberland, Davidson, Duplin, Durham, Edgecombe, Forsyth, Gaston, Graham, Greene, Halifax, Harnett, Haywood, Hertford, Jackson, Jones, Lee, Lincoln, Madison, Martin, Montgomery, Moore, New Hanover, Onslow, Orange, Pasquotank, Pitt, Randolph, Robeson, Rockingham, Rowan, Rutherford, Sampson, Stanly, Surry, Swain, Washington, and Wilkes.
Line 10 - Enter the amount of your purchases that were purchased for storage, use, or consumption in a county imposing a 0.5% transit tax and on which the county transit rate of tax was not collected by the vendors. Generally, purchases included on Line 10 should also be included on Lines 8 or 9..
Durham, Mecklenburg, Orange, and Wake currently impose a 0.5% transit rate of tax.
Line 11 - Do not use this line. No county has levied the 0.25% rate of tax. If this changes, the Department will publish a notification.
Line 12 - Enter the amount of your purchases that were purchased for storage, use, or consumption in a county imposing a 1.00% additional county rate of tax and on which the additional county rate of tax was not collected by the vendors. Generally, purchases included on Line 12 should also be included on Lines 8 and 10.
Mecklenburg County is currently the only county that imposes a 1.00% additional county rate of tax.
Receipts Column - Lines 4 through 6: On Lines 4-6 of the "Receipts" column, you should enter the total amount of your taxable receipts, rentals, and sales, excluding the amount of tax collected.
Enter the amount on the appropriate line as follows:
Line 4 - Enter the amount of your taxable receipts, rentals, and sales not subject to another rate of State tax.
Line 5 - Enter the amount of your taxable receipts, rentals, and sales of boats. The maximum taxable sales price of a single boat, including all accessories attached at the time it was delivered to the purchaser, is $50,000.
Line 6 - Enter the amount of your taxable receipts, rentals, and sales of modular homes. The taxable amount is fifty percent (50%) of the sales price of each modular home, including all accessories attached when delivered to the purchaser.
Receipts Column - Lines 7 through 12: On Lines 7-12 of the "Receipts" column, enter the total amount of your taxable receipts, rentals, and sales subject to county tax, excluding the amount of tax collected.
Do not include receipts from the sale of an aircraft, a manufactured home, a modular home, or a qualified jet engine.
Enter the amount of receipts on the appropriate line as follows:
Line 7 - Enter the total amount of your taxable receipts, rentals, and sales of food products exempt from State tax, but subject to the local 2% rate of food tax.
Do not include these receipts, rentals, and sales on Lines 8, 9, 10, 11, or 12.
Line 8 - Enter the total amount of your taxable receipts, rentals, and sales sourced to a county imposing a 2% local rate of tax.
Counties imposing a 2% local rate of tax are all counties other than those listed for line 9.
Line 9 - Enter the total amount of your taxable receipts, rentals, and sales sourced to a county imposing a 2.25% local rate of tax.
The counties imposing a 2.25% local rate of tax are: Alexander, Alleghany, Anson, Ashe, Bertie, Buncombe, Cabarrus, Catawba, Chatham, Cherokee, Clay, Cumberland, Davidson, Duplin, Durham, Edgecombe, Forsyth, Gaston, Graham, Greene, Halifax, Harnett, Haywood, Hertford, Jackson, Jones, Lee, Lincoln, Madison, Martin, Montgomery, Moore, New Hanover, Onslow, Orange, Pasquotank, Pitt, Randolph, Robeson, Rockingham, Rowan, Rutherford, Sampson, Stanly, Surry, Swain, Washington, and Wilkes.
Line 10 - Enter the total amount of your taxable receipts, rentals, and sales entered on Lines 8 and 9 that are sourced to any of the following counties: Durham, Mecklenburg, Orange, and Wake.
Line 11: Do not use this line. No county has levied this rate of tax. If this changes, the Department will publish a notification.
Line 12 - Enter the total amount of your taxable receipts, rentals, and sales entered on Line 8 that are sourced to Mecklenburg County.
Line 13 - Total State and County Tax: The total State and county tax has been automatically calculated by adding Lines 4 through 12.
Line 14 - Excess Collections: If you collected more tax than was due from a customer on a sale, enter the total amount of your excess collections. See N.C. Gen. Stat. § 105-164.11 for more information.
Line 15 - Total Tax: The total tax amount has been automatically calculated by adding Lines 13 and 14.
Line 16 - Penalty: Penalties are not automatically calculated. The Department will determine applicable penalties, if any, after the return is submitted. However, to avoid additional penalties, you may calculate the penalties manually and enter the amount on Line 16.
If you file a return after the due date, multiply the tax amount shown on Line 15 by 5% (.05) for each month, or part of a month, that the return is filed late. The maximum penalty is 25% of the total tax.
If you do not pay the tax when due, multiply the tax amount shown on Line 15 by 5% (.05).
Line 17 - Interest - State and County: Interest is not automatically calculated. The Department will determine applicable interest, if any, after the return is submitted. However, to avoid additional interest you may calculate the interest manually and enter the amount on Line 17.
If you do not pay the tax when due, compute interest on the tax amount shown on Line 15. Find the current and past interest rates at ncdor.gov/interest.
Line 18 - Less Prepayment for This Period: Use this line if you made a prepayment for the current period. Enter the total amount of any electronic payment made for this period prior to filing this return.
Line 19 - Prepayment for Next Period: Use this line if you have been assigned a monthly prepayment filing frequency. Enter the total amount of prepayment due for the next month's tax liability.
The prepayment is due when the monthly return is due for the current period. The prepayment must equal at least 65% of any of the following:
Line 20 - Less any Credit: If you are allowed a credit for sales and use tax previously paid, enter the amount of tax credit claimed and enter a brief explanation in the space provided.
If you claim a credit, you must file Form E-RA. The information on Form E-RA should match your Form E-500. If you do not submit Form E-RA and supporting documentation, the Department will disallow your credit and issue an assessment. For assistance, call the Department at 1-877-252-3052.
If you are requesting a refund of an overpayment of tax, you are encouraged to file Form E-588, Business Claim for Refund State, County, and Transit Sales and Use Taxes, instead of taking a credit on your sales and use tax return. You are required to pay any tax shown due on the return.
Line 21 - Total Due: The total due has been automatically calculated by adding Lines 15, 16, 17, and 19, and subtracting any prepayment
on Line 18 and any credit amount on Line 20. Pay this amount.
Form E-536, Schedule of County Sales and Use Taxes
You must complete Form E-536 to file online. Enter the amount of tax in the correct rate column for each county. The sum of the tax for all counties must equal the amounts in the Tax column on Lines 8, 9, and 10 on your sales and use tax return.
The 2% Food tax and the 1% Additional County tax are included at the bottom of the page from your Form E-500.
A retailer or facilitator required to collect county tax must do so based on the sourcing provisions in N.C. Gen. Stat. § 105-164.4B.
Review Sourcing Sales for Sales and Use Tax or the Sales and Use Tax Bulletins for more information.
Payment with Report Worksheet (instruction only applies if you selected "Submit single payment only")
If your Form E-500 shows a balance of tax due for the current period, enter the amount you would like to pay for the current tax period in the field labeled "Current Tax Payment Amount." If you choose to pay less than the amount shown due on the return, the Department will mail you a collection notice for the remaining tax due plus any applicable penalties and interest.
If your Form E-500 shows a prepayment for the next period, enter the amount you would like to pay for the prepayment in the field labeled "Prepayment Amount." If your return shows an overpayment of tax for the current period, the overpayment amount has been deducted from the prepayment amount shown on the return to determine a net prepayment for the next period.
To make changes to Form E-500 or the reporting period dates, select BACK.
Dual Payment Worksheet(instruction only applies if you selected "Submit dual payment (Current Tax Period and Prepayment)")
Your completion of this worksheet does not replace the filing of Form E-500, Sales and Use Tax Return. You must file a return by the due date or a delinquent notice for failure to file will be issued by the Department.
In order to accurately complete the worksheet, have a copy of your Form E-500 available. Enter the information from Line 15 - Total Tax, Line 18 - Less Prepayment for This Period, Line 20 - Less any Credit and Line 19 - Prepayment for Next Period from your Form E-500 onto the Dual Payment Worksheet.
The worksheet will populate "Total Current Tax Due" and "Payment Amount for Current Tax Due." The "Payment Amount for Current Tax Due" may be altered. If you choose to pay less than the amount shown due, the Department will mail you a collection notice for the remaining tax due plus any applicable penalties and interest.
The worksheet will populate "Less Current Period Overpayment," "Net Amount for Prepayment for Net Period" and "Payment Amount for Prepayment." If there is an overpayment of tax for the current period, the overpayment amount will be deducted from the prepayment amount shown on the return to determine a net prepayment for the next period.
You may pay by one of the following methods:
If you are a monthly with prepayment taxpayer making a payment for the current tax period as well as a prepayment for the next period, you must make both payments using the same payment method. You can submit both payments in one submission, but the payments will be completed as separate payment amounts and you will receive separate confirmation numbers.
What information do I need to make a credit or debit card payment?
You will need all of the following:
Is there a fee?
There is a convenience fee for choosing to pay by credit or debit card. The fee $2.00 for every $100.00 increment of your tax payment.
Examples of fee calculation:
$2.00 for payment amounts of $.01 to $100.00
$4.00 for payment amounts of $100.01 to $200.00
$6.00 for payment amounts of $200.01 to $300.00
How do I submit my payment?
You will be prompted through a series of screens that will require you to
complete a return or payment application and furnish credit or debit card account
information. You will be provided a confirmation page that you should print
and save for your records that will contain a confirmation number. If you are
a monthly with prepayment taxpayer and you make a payment for both the current
tax period and a prepayment for the next period, you will be provided two
confirmation numbers, one for each payment.
What if I change my mind after I have completed a credit or debit card transaction?
If you make a payment by credit or debit card and later reverse the transaction,
you may be subject to penalties, interest or other fees imposed by the Department
of Revenue for nonpayment or late payment of tax.
How will I know the Department has received my payment information?
You will receive an email from the Department within two business days from submission
of your payment information. The email will contain the same confirmation number that
is displayed on the confirmation page that you print for your records. This email will
also contain a Document Locator Number. You should retain the email for your records and
you should provide these numbers if you contact the Department for assistance with your
payment.
When will my payment be effective?
All transactions submitted prior to 5:00 pm EST will be effective the following
banking day.
What if I make an overpayment of my tax liability using my credit or debit
card?
If the Department determines you made an overpayment, a refund may
be issued to you. The convenience fee will not be refunded.
Is my information secure?
Security measures are in place to protect your information. No one
can read your tax information while it is being electronically filed. The web site and your data
are secured with SSL (Secure Socket Layer) and 128-bit encryption.
Who can I contact for assistance concerning my electronic payment?
For additional assistance, contact the Customer Service Team Monday through
Friday between the
hours of 8:00 am and 4:30 pm EST at 1-877-308-9103, Option 1.
What is a payment by bank draft?
You authorize the Department of Revenue to draft the bank account for
the payment amount specified on the web form by providing your bank account
information.
Is there a fee?
No.
How do I submit my payment?
You will be prompted through a series of screens that will require you to
complete a return or payment application and furnish bank account information.
You will be provided a confirmation page that you should print and save for your
records that will contain a confirmation number. If you are a monthly with
prepayment taxpayer and you make a payment for both the current tax period and a
prepayment for the next period, you will be provided two confirmation numbers,
one for each payment.
How will I know the Department has received my payment information?
You will receive an email from the Department within two business days from
submission of your payment information. The email will contain
the same confirmation number that is displayed on the confirmation page that
you print for your records. This email will also contain a Document Locator
Number. You should retain the email for your records and you should provide
these numbers if you contact the Department for assistance with your payment.
What information do I need to authorize a bank draft?
You will need all of the following:
This example of a check can help you find your bank account number and bank routing number.
Tip! Do not use a deposit slip to find your bank numbers. It may not have the information you need.
Contact your financial institution if you need help locating your bank routing number or account number.
When will my payment be effective?
Your payment will be effective on the date you select it to be drafted from
your bank account. This draft date or settlement date must be a valid banking
date that does not include weekends or bank holidays. Payments received beyond the due
date are subject to penalty and interest. However, if you initiate a sales and use tax payment on the
due date of the return and the payment settles on the next available settlement date, you will
not owe penalty and interest for late payment due to the payment settling on the next available settlement date.
When completing the bank draft payment screen, you will be provided with the earliest possible settlement date. This date is figured on a 5:00 pm EST cut off. In other words, if you submit your bank draft payment after 5:00 pm EST, the earliest date your payment would settle would be two business days in the future.
How far in advance can I provide you with my payment information?
You can request that your payment information be "warehoused" for up to 60 days.
This means you can prepare your online payment early but have your bank account
drafted later. The Department of Revenue will receive the online payment once your payment is drafted from your account.
What if I change my mind after I have completed the bank draft transaction?
If you make a payment by bank draft and later decide to reverse the transaction, you
will need to contact your bank to cancel the transaction. However, you may be subject
to penalties, interest or other fees imposed by the Department of Revenue for nonpayment
or late payment of tax.
What happens if my bank does not process the bank draft?
In the event the financial institution is unable to process the transaction,
you will be responsible for the tax payment and for the applicable penalties
and interest. If the financial institution returns the item, the Department
of Revenue will notify you of the returned item.
Will I be penalized if the item is returned?
If the item is returned for insufficient funds or unable to locate account,
you will be subject to a "Penalty for Bad Electronic Funds Transfer" equal
to 10% of the amount of the tax payment ranging from a minimum of $1.00 to
a maximum of $1,000.00.
Is my information secure?
Security measures are in place to protect your information. No one
can read your tax information while it is being electronically filed. The web site and your
data are secured with SSL (Secure Socket Layer) and 128-bit encryption.
Who can I contact for assistance concerning my electronic payment?
For additional assistance, contact the Customer Service Team Monday through
Friday between the
hours of 8:00 am and 4:30 pm EST, at 1-877-308-9103, Option 1.
You must select submit to complete your transaction.
Review all the information you have entered to make sure that it is accurate and complete. If you need to make changes, use the buttons at the bottom of the page to return to the appropriate screen to make your corrections. When you determine that the information displayed is correct and you have read the affirmation statements, select SUBMIT to complete your transaction and transmit the information to the Department of Revenue. Once submitted, the information cannot be changed through the online filing and payment system.
The confirmation screen displays all the information that has been transmitted to the Department of Revenue. You should print a copy of this page for your records. If you submitted Form E-536, use the button at the bottom of the page to view and print this form. You will also receive an email, or emails, acknowledging the submission and listing the confirmation number(s). You should retain all information for your records.
If you submitted a payment for both the current tax period and a prepayment for the next tax period and your prepayment did not go through, you will need to submit your prepayment again. You must start over and select the Submit Single Payment filing option to make a payment for next month's tax liability only.
Reminder: If you claim a credit on line 20 of Form E-500, you must file Form E-RA. The information on Form E-RA should match your Form E-500. If you do not submit Form E-RA and supporting documentation, the Department will disallow your credit and issue an assessment. For assistance, call the Department at 1-877-252-3052.
If the ownership of your business changes, the new owner must submit a new registration application to obtain a new sales and use tax account number.
If you discontinue business operations or sell your business, complete Form NC-BN, Out-of-Business Notification. To prevent issues filing your last Form E-500, Sales and Use Tax Return, complete Form NC-BN after filing your last Form E-500.
Last modified on: 04/28/26 11:08:04 AM .
