North Carolina Resale Certificate 2026: How to Get Your Certificate of Exemption

North Carolina stands out in the resale certificate landscape for one important reason: it is a full member of the Streamlined Sales Tax (SST) program. This membership shapes how the state handles exemption certificates, registration, and multi-state transactions. If you buy goods for resale in North Carolina or sell to North Carolina buyers, understanding the state's system saves time, money, and audit headaches.

This guide covers everything you need to know about North Carolina's resale certificate process in 2026, from the specific form you need to the registration system and state-specific rules.

North Carolina Sales Tax Rates in 2026

State Rate

North Carolina's state sales tax rate is 4.75%. This is moderately low compared to states like Tennessee (7%) or Mississippi (7%), but local taxes bring the effective rate higher.

Local Rates

All 100 North Carolina counties impose a local sales tax. The county rate is typically 2% to 2.75%, bringing combined rates across the state to between 6.75% and 7.5%.

Durham and Orange counties reach the maximum combined rate of 7.5%. On a $100,000 inventory purchase, that is $7,500 in sales tax avoided with a valid exemption certificate.

See exactly how much you could save with our savings calculator.

Form E-595E: North Carolina's Exemption Certificate

North Carolina uses Form E-595E, officially called the Streamlined Sales and Use Tax Agreement Certificate of Exemption. This is the form you provide to suppliers when purchasing goods tax-free for resale.

Why E-595E?

Because North Carolina is an SST member state, it uses the standardized Streamlined certificate form rather than a proprietary state form. This is beneficial for businesses that operate across multiple states, because the same form format is recognized by all SST member states.

Key Features of E-595E

• Multi-purpose form: E-595E covers resale exemptions, agricultural exemptions, manufacturing exemptions, and other statutory exemptions. You check the appropriate box indicating your reason for exemption.
• Self-completed: You fill out the form yourself and give it to your supplier. The North Carolina Department of Revenue (NCDOR) does not issue a pre-printed certificate.
• No expiration date: The E-595E does not expire as long as your North Carolina sales tax registration remains active. However, suppliers may request an updated certificate periodically.
• Blanket or single-use: You can issue a blanket E-595E to cover all qualifying purchases from a specific supplier, or use it for individual transactions.

How to Complete Form E-595E

The form requires:

1. Purchaser information: Business legal name, address, state of registration
2. Seller information: Name and address of the supplier you are giving the certificate to
3. State identification number: Your North Carolina sales tax ID number
4. Reason for exemption: Check "Resale" and provide a general description of the items you purchase for resale
5. Type of business: Retail, wholesale, manufacturing, etc.
6. Single or blanket certificate: Indicate whether the certificate covers one transaction or all future qualifying purchases
7. Signature and date

Common errors that invalidate the form:

• Missing sales tax ID number
• Failure to check the exemption reason box
• Unsigned form
• Incomplete purchaser or seller information

North Carolina and the Streamlined Sales Tax Program

North Carolina's membership in the SST program has practical implications for businesses.

What SST Membership Means

The Streamlined Sales Tax Governing Board was created to simplify and standardize sales tax administration across participating states. As a full member, North Carolina:

• Uses standardized definitions for taxable products and services
• Accepts the SST Certificate of Exemption (which is what Form E-595E is based on)
• Participates in the SST Registration System (SSTRS): Out-of-state sellers can register for North Carolina sales tax through the centralized SSTRS portal, rather than going directly through NCDOR
• Conforms to uniform exemption administration rules

Benefits for Multi-State Sellers

If you sell in multiple SST member states, you can register for sales tax in all of them through a single application at the SST Registration System. Current SST full member states include North Carolina, Indiana, Iowa, Kansas, Kentucky, Michigan, Minnesota, Nebraska, Nevada, New Jersey, North Dakota, Ohio, Oklahoma, Rhode Island, South Dakota, Utah, Vermont, Washington, West Virginia, Wisconsin, and Wyoming.

For more on multi-state registration and certificates, see our multi-state resale certificates guide.

How to Register with NCDOR

Online Registration

The North Carolina Department of Revenue (NCDOR) handles all state tax registration. You can register online through the NCDOR website.

Steps:

1. Visit the NCDOR Business Registration page at ncdor.gov
2. Create an online account if you do not already have one
3. Complete Form NC-BR (Business Registration Application for Income Tax Withholding, Sales and Use Tax, and Machinery, Equipment, and Manufacturing Fuel Tax)
4. Provide the required information:
   • Federal EIN (or SSN for sole proprietors)
   • Business legal name and trade name
   • Business address and mailing address
   • Type of ownership (sole proprietor, LLC, corporation, partnership)
   • Nature of business
   • Estimated taxable sales
   • Date business began (or will begin) in North Carolina
5. Submit the application

Alternative: SST Registration

If you are an out-of-state business registering in North Carolina (and possibly other SST states simultaneously), you can use the Streamlined Sales Tax Registration System (SSTRS) at sstregister.org. This lets you register in multiple SST member states through one application.

Processing Time

NCDOR typically processes online applications within 5 to 10 business days. Paper applications can take 3 to 4 weeks.

Once registered, you receive your North Carolina sales tax account number, which you enter on all E-595E forms you issue.

We handle the full registration process for businesses in North Carolina.

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What Qualifies for Tax-Free Purchase in North Carolina?

Exempt Purchases (Tax-Free with E-595E)

• Inventory for resale: Products purchased for sale to customers
• Raw materials and components: Items that become part of a finished product you sell
• Packaging materials: Containers, boxes, bags, labels, wrapping used to package goods for sale
• Items for rental or lease: Property you will rent to customers

Non-Exempt Purchases (You Pay Tax)

• Office equipment and supplies
• Business-use vehicles
• Tools and machinery for your own operations
• Fixtures, signage, and store build-out materials
• Consumables used internally (cleaning supplies, printer ink, breakroom supplies)

Special North Carolina Rules

Vending Machine Operators

North Carolina gives vending machine operators a unique option. Rather than tracking the exact sales tax owed on each vending transaction, operators can elect to pay sales tax on 50% of their gross receipts from vending machine sales. This simplifies compliance for operators who would otherwise need to calculate tax on thousands of small transactions.

Digital Products

North Carolina taxes digital products that are delivered electronically. This includes digital audio, video, books, and other digital goods. If you sell digital products, you must collect sales tax on those sales. If you purchase digital products for resale, you can use your E-595E to buy them tax-free.

Food and Groceries

North Carolina taxes food for home consumption (groceries) at the reduced 2% state rate (plus applicable local tax). Prepared food is taxed at the full combined rate. Restaurants, caterers, and food trucks should be aware of this distinction when setting up their tax collection.

North Carolina Rules for Contractors

North Carolina follows the standard treatment: contractors are generally the end consumer of materials they purchase and install into real property.

Standard Rules

• Contractors pay sales tax on building materials at the time of purchase
• Contractors do not charge customers a separate sales tax on materials installed into real property
• The E-595E cannot be used for materials that will become part of real property

Exceptions

1. Retail sales of materials (not installed): If you operate a retail store alongside your contracting business and sell materials to customers who install them, those retail purchases qualify for the resale exemption.

2. Modular/manufactured homes: Special rules apply to manufactured housing. The manufacturer pays sales tax on materials used to build the home, and the sale of the finished home may be treated differently depending on how it is classified (real property vs. personal property).

3. Government and exempt entity projects: Certain purchases for projects funded by specific government programs may qualify for exemption with proper documentation.

Example

For more on contractor rules, see our construction materials sales tax guide.

Record Keeping Requirements

North Carolina requires businesses to maintain all sales and use tax records for a minimum of 3 years from the date the return was due or filed, whichever is later.

What to Maintain

• All E-595E forms you have issued (as a buyer) and received (as a seller)
• Purchase invoices for exempt transactions
• Sales records with tax collected
• Filed returns and payment confirmations
• Registration documents and account correspondence

Audit Considerations

NCDOR auditors will verify:

• Your registration was active during the periods in question
• E-595E forms are properly completed and on file for all exempt sales or purchases
• The exemption reason matches the actual use of the goods
• Reported sales and purchases are consistent with business activity

Missing or incomplete E-595E forms can result in the auditor assessing tax on the related transactions, plus penalties and interest.

How Much Can You Save?

Calculate your exact savings with our savings calculator.

Get Your North Carolina Resale Certificate

We handle the full NCDOR registration process and provide guidance on completing your E-595E correctly.

• Complete application assistance
• Fast online processing through NCDOR
• SST multi-state registration if needed
• Ongoing compliance support

Get Your Resale Certificate -->

For complete details on North Carolina's requirements, visit our North Carolina state page.

North Carolina's SST membership makes its exemption certificate system one of the more standardized in the country. Register, complete your E-595E forms, and provide them to your suppliers. With combined rates up to 7.5%, the savings on every inventory purchase are substantial.

Related Articles

• What Is a Resale Certificate? - Understand the basics of resale certificates before diving into North Carolina's E-595E form.
• Uniform Sales and Use Tax Certificate (Multijurisdiction) - How the MTC uniform certificate works alongside North Carolina's SST-based E-595E.
• Sales Tax Exemption Forms: Complete Guide - Find the right form for any state, including North Carolina's E-595E.