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North Carolina's excise tax (revenue stamps) on real estate transfers is:

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Question & Answer

Review the question and all answer choices

A

$1 per $100

Option A is incorrect because North Carolina's state excise tax rate is $1 per $500, not $1 per $100. The $1 per $100 rate is much higher than what NC actually charges and doesn't account for local options.

B

$2 per $1,000

Option B is incorrect because while $2 per $1,000 is mathematically equivalent to $1 per $500, it fails to mention that counties may add additional local transfer taxes, making it an incomplete answer.

C

$1 per $500 (state) plus local options

Correct Answer
D

No transfer tax

Option D is incorrect because North Carolina does impose a transfer tax on real estate transactions. There is no state in the US that completely lacks some form of real estate transfer tax, though the rates vary significantly.

Why is this correct?

Option C is correct because it accurately states North Carolina's excise tax rate as $1 per $500 of the sale price (equivalent to $2 per $1,000) and includes the important detail that counties have the option to add additional local transfer taxes, making it the most comprehensive and precise answer.

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