North Carolina generally collects what's known as the highway-use tax – instead of sales tax – on vehicles whenever a title is transferred. (Vehicles are also subject to
property taxes, which the N.C. Division of Motor Vehicles collects, as defined by law, on behalf of counties.)
Revenue from the highway-use tax goes to the North Carolina Highway Trust Fund and the North Carolina's General Fund and is earmarked for road improvements.
The type of vehicle determines the amount of tax paid, as detailed in the following table.
Some vehicles are exempt from the highway-use tax.