North Carolina will implement a new Transportation Commerce Tax beginning July 1, 2025. Under the measure, rideshare passengers using apps like Uber and Lyft, as well as taxi riders, will see an additional tax added to their fares.
According to the North Carolina Department of Revenue, ride providers must collect the tax at the point of fare payment, regardless of whether the trip is completed. The tax structure differs based on the type of service:
– Exclusive‑ride trips will be taxed at 1.5%.
– Shared‑ride trips, such as carpool options, will be taxed at 1.0%.
Rideshare and taxi companies must register with the state by July 1 and will be required to file returns and remit taxes directly using a new form, E‑500T.
The state legislature approved the Transportation Commerce Tax in Session Law 2023‑134. Revenue generated from the tax will be used to support the state’s highway fund and transportation infrastructure projects.
Commuters can expect a slight increase in fare prices starting Tuesday, July 1, as providers begin applying the new tax.
