Mecklenburg County transit sales tax kicks in July 1

Mecklenburg County's new 1% sales tax for transportation takes effect July 1.

Why it matters: Shoppers will pay slightly more on clothes, furniture, electronics and other purchases. The revenue is expected to generate nearly $20 billion over 30 years for major regional transportation projects, such as the Red Line.

By the numbers: The tax hike, approved by voters in November 2025, increases the combined state and local sales and use tax rates from 7.25% to 8.25%.

Expect to pay $1.65 for a $20 purchase or $8.25 for a $100 purchase, up from $1.45 and $7.25, respectively.

The average household could spend an extra $20 per month, or $240 annually, according to the City of Charlotte's estimates.

The sales tax rate includes a 4.75% statewide tax, a 2% countywide sales tax, a 0.50% transit tax originally approved in 1998 and the additional 1% for transit approved last year.

Caveat: The new tax does not apply to some purchases subject to a specific tax rate, such as certain grocery items (2%), electricity (7%) and liquor other than mixed drinks (7%).

North Carolina lawmakers are considering a bill to exempt sales taxes on diapers, baby wipes, tampons and other feminine hygiene products. It's called the "Tax-Free Family Essentials Act."

Catch up quick: The roads and transit tax narrowly passed in a referendum with 52% of the vote, a margin of about 7,500.

Of the revenue, 40% will go to rail projects, 20% to the bus system and 40% to roads, including new bike paths, lighting and sidewalks.