Are digital goods taxable in North Carolina?
Yes. North Carolina taxes specified digital products and additional digital goods, which include a report or publication sold as an electronically transferred item.
| Short answer | Taxable |
|---|---|
| Authority | G.S. 105-164.3(5), (33), (103) |
| Last reviewed | 2026-09-30 |
Why
G.S. 105-164.3(5) defines additional digital goods to include magazines, newspapers, newsletters, reports and other publications transferred electronically, alongside photographs and other items.
An information service is excluded from this category, so the question is whether the buyer is paying for a deliverable or for a service.
Business vs. consumer buyers
AgentTax applies the same answer to business and consumer buyers here. Only a few states change the answer by buyer: Iowa and Washington exempt some business purchases by statute, and Maryland and Ohio split the rate or taxability by use.
Where the line is
- Access to an information service, as opposed to a delivered report, is not taxable.
How AgentTax classifies digital goods
Downloads the buyer keeps: e-books, music, video, data files and other digital products transferred electronically. AgentTax routes downloads and data purchases to its digital good category.
Run a North Carolina sale through the AgentTax engine and get the amount, the rate it used and the statute behind it. No signup needed.
Open the calculatorFrequently asked questions
- Is a downloaded report taxable in North Carolina?
- Yes. A report sold as an electronically transferred item is an additional digital good under G.S. 105-164.3(5).
Related
- All North Carolina digital tax answers
- Is SaaS taxable in North Carolina? (full guide)
- Are information services taxable in North Carolina?
- Digital goods: every state we cover
- Are digital goods taxable in Arkansas?
- Are digital goods taxable in Georgia?
- Are digital goods taxable in Idaho?
- Are digital goods taxable in Indiana?
- Are digital goods taxable in Iowa?
- Are digital goods taxable in Kansas?
Sources
- G.S. 105-164.3(5), (33), (103)
This page is for informational purposes only and is not tax, legal, or accounting advice. It reflects AgentTax's current interpretation of evolving law, which can change. Consult a qualified tax professional before making compliance decisions. Positions on this page come from the AgentTax tax policy registry (v1.24.0); see our methodology.