Important Sales Tax Information for Builders & Businesses

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Make sure you are paying the correct sales tax

Save money and increase support for county services!

Chatham County’s sales tax rate of 6.75% is tied for the LOWEST in North Carolina. Five of the eight border counties have higher sales tax rates!

Vendors often use the 5-digit zip code to identify the county, but look how many Chatham’s addresses are in zip codes that cross over from other counties.

Shows areas in Chatham covered by outside zip codes

Which zip codes overlap into Chatham? 

• 27330
• 27349
• 27355
• 27502
• 27514
• 27516
• 27517
• 27519
• 27523
• 27562
• 27713

Builders and other businesses could be charged another county’s incorrect
and higher sales tax rate, resulting in over payment and revenues sent to another county.

Sample sales tax calcuation

This example shows a purchase with delivery fee to a Chatham County address. Any delivery fee is included in the calculation of sales taxes owed.

 

 Correct

 Incorrect

Price of item purchased 

 $950.00

 $950.00

Delivery fee

 $  50.00

 $ 50.00

Sales tax

 $   60.75

   $   70.50

Total

 $1060.75

   $1070.50

Calculation:    
Sales tax ÷ price+delivery fee      $60.75/$1000     $70.50/$1000
Sales tax rate

    6.75%

     7.50%

What you can do: 

1.  When placing the order, ask them to use the 9-digit zip code or the county name, if accepted by the vendor.
     This applies to online orders as well as in-store orders. 
2.  Make sure the correct Chatham sales tax rate of 6.75% is charged 
3.  Check to make sure that Chatham is the designated county, even if the correct 6.75% is charged

Benefits:

1. Save money by paying the correct sales tax, based on Chatham’s lower rate
        a. 5 of the 8 border counties have a higher sales tax rate
        b. Two of these counties have the highest rate in North Carolina 

2. More sales tax revenue helps maintain current level of other taxes and fees.

3. Bringing in our fair share of sales tax revenues will support:
      a. Local schools
      b. Law enforcement
      c. Parks and recreation
      d. Public libraries
      e. Economic development

Contact Us

Let us know if you are having problems with vendors charging the correct sales tax. If you have any questions or concerns, contact the Chatham County Manager’s Office at 919-542-8258 or email us at sales.tax@chathamnc.org.