Will Mecklenburg transportation tax increase food prices? How proposal affects you
Charlotte’s plan to pay for transportation needs across Mecklenburg County would increase how much you’ll pay for many goods. But by how much depends on what you’re buying.
County commissioners are expected to vote next month to put a referendum on the November ballot on whether to increase Mecklenburg’s sales tax rate by 1 cent to pay for rail, road and bus projects.
Supporters say the tax increase would unlock tens of billions to overhaul the region’s congested roadways, improve bus service and build long-awaited train lines. But critics say the increase in a regressive tax — one that takes a larger percentage of income from low-income taxpayers than from high-income taxpayers — could hit residents’ wallets hard.
Here’s a look at what Mecklenburg County residents would pay if the sales tax rate goes up:
Mecklenburg County sales tax rate
Mecklenburg County’s sales tax rate as of July 2025 is 7.25%. That means someone would pay $7.25 in sales tax on an item with a before-tax price of $100, for example, or $1.45 in sales tax on something that costs $20 before tax.
The current rate includes a 4.75% state sales tax rate, plus a 2% local sales tax and an existing 0.5% transportation tax approved by voters in the 1990s.
The proposed increase would raise Mecklenburg’s total sales tax rate to 8.25%. That would increase the sales tax on a $100 item, for example, to $8.25, or to $1.65 in sales tax on a $20 purchase.
What do you pay sales tax on in Mecklenburg County?
In North Carolina, customers must pay sales tax on “tangible personal property, certain digital property, and specified services,” according to the state Department of Revenue. State law defines “tangible personal property” as “personal property that may be seen, weighed, measured, felt, or touched or is in any manner perceptible to the senses.”
The full sales tax rate applies to common items including:
Clothes
Electronics
Toys
Furniture
Books
Admission to entertainment activities
But some items are taxed at a different rate.
Retail sales of liquor “other than mixed beverages,” for example, are subject to a 7% sales tax, according to the state Department of Revenue.
“Qualifying food items” — which include many grocery items such as dairy products, meat and produce — are charged only a 2% sales tax rate. But other foods — including prepared food, soft drinks and candy — are subject to the full sales tax rate of the county.
How much will sales tax increase cost Mecklenburg County residents?
The city of Charlotte estimates the “average” Mecklenburg County household would pay an additional $20 a month in sales tax if the 1-cent increase was implemented, or an annual increase of $240, according to a June presentation. The same presentation estimated a “lower-income” household in the county would pay an additional $11 a month, or $132 in a year.
But the exact amount a resident would pay depends on their spending habits.
Someone buying a new laptop that retails for $999 would pay about $10 more in sales tax on that one purchase alone under the new tax rate, a jump from $72.43 in sales tax to $82.42.
The sales tax paid on a new dress that’s on sale at a department store for $59.70 would increase from $4.33 to $4.93.
One’s grocery bill wouldn’t increase at all if they were only buying pantry staples such as milk, eggs and bread. But it would go up if they were buying soda or a prepared food item.
