Raleigh, N.C. – The North Carolina Department of Revenue (NCDOR) will begin administering the new Transportation Commerce Tax later this year. This tax, enacted under Session Law 2023-134, will apply to ride services provided by taxis and transportation network companies starting July 1, 2025.
Under the new law, taxi services and transportation network companies will be responsible for collecting the tax from customers beginning on the effective date. These businesses, referred to as taxpayers under the statute, will be required to file Transportation Commerce Tax returns and submit payments directly to the NCDOR.
Taxpayers must complete registration with the NCDOR before the July 1, 2025, deadline. Information on how to register is available on the department’s website at ncdor.gov.
The tax rates established under the law include a 1.5 percent tax on the gross receipts of exclusive-ride services and a 1.0 percent tax on gross receipts for shared-ride services.
For additional information, including registration details and frequently asked questions, individuals and businesses can visit the NCDOR’s official website.
