Free template, North Carolina tax rules built in
Free North Carolina Invoice Template
North Carolina is a state where many service businesses get tripped up: since 2016 it taxes repair, maintenance, and installation services. This template gets the NC tax line right so you collect what you are supposed to.
Sales tax on invoices in North Carolina
Rate: 4.75% state, plus county rates (commonly 6.75% to 7.5%)
North Carolina charges 4.75% state sales tax with county add-ons, putting combined rates commonly at 6.75% to 7.5%. Unlike many states, North Carolina taxes repair, maintenance, and installation (RMI) services on tangible property. So a lot of trade work that would be tax-free elsewhere is taxable here. If you do RMI work, charge sales tax on the labor and the parts. Confirm your category with the NC Department of Revenue.
What gets taxed: Goods are taxable, and repair, maintenance, and installation services are taxable too.
Rates and rules change. Confirm the current rate and what is taxable with your state tax authority before you file.
Contractor licensing in North Carolina
North Carolina licenses general contractors through the NC Licensing Board for General Contractors for projects of $40,000 or more, and licenses specialty trades like electrical and plumbing separately. Show your license number on the invoice when required.
Sample North Carolina invoice
Example for a job in Charlotte, NC, showing how the tax line works when some items are taxable and some are not.
| Description | Qty | Rate | Amount |
|---|---|---|---|
| Repair labor (taxable RMI in NC) | 4 | $95.00 | $380.00 |
| Replacement parts | 1 | $210.00 | $210.00 |
| Subtotal | $590.00 | ||
| Sales tax (7.25% on taxable items) | $42.78 | ||
| Total | $632.78 | ||
Tax is applied only to the taxable lines, which is the part most invoices get wrong. Build yours with the right tax handling in the free generator.
Make this invoice freeBy trade
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View templateNeed a blank one? Use the free invoice generator to build any NC invoice and download a PDF.
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North Carolina invoice FAQs
Are repair services taxable in North Carolina?
Yes. Since 2016 North Carolina taxes repair, maintenance, and installation (RMI) services on tangible property. This catches a lot of trade work that is tax-free in other states, so charge sales tax on RMI labor and parts. Confirm your category with the NC Department of Revenue.
What sales tax rate applies in North Carolina?
The state rate is 4.75%, and counties add to it, putting combined rates commonly at 6.75% to 7.5%. Use the rate for the county where the work is delivered.
Do I need a contractor license in North Carolina?
General contractors need a license for projects of $40,000 or more through the state licensing board, and specialty trades like electrical and plumbing are licensed separately. Show your license number on the invoice when required.