North Carolina’s New Transportation Tax
New Transportation Commerce Tax on Ride-Share Services
Effective July 1, 2025, North Carolina has enacted a new Transportation Commerce Tax for ride-share and taxi services. Authorized under House Bill 259 (Session Law 2023‑134), the tax is designed to generate revenue for the state’s Highway Fund, supporting transportation infrastructure.
The tax applies to for-hire ground transportation providers, including companies like Uber, Lyft, and traditional taxi services, operating within North Carolina. These companies are required to collect the tax on applicable fares and remit it to the N.C. Department of Revenue. Public transportation services such as buses, non-emergency medical transport, and food delivery services like DoorDash and Uber Eats are exempt from the tax.
Details of the Tax Structure
1.5% tax on exclusive rides (private, individual trips)
$20 exclusive ride = $0.30 tax
1.0% tax on shared rides (multiple passengers traveling together)
$15 shared ride = $0.15 tax
The tax is calculated on the total fare, including fees and tolls, and is collected by the ride-share company at the time of service.
Projected Revenue and Intended Use
The North Carolina Department of Revenue anticipates that the tax could generate $20–25 million annually. Funds will be directed to the Highway Fund, earmarked for:
Road and bridge repairs
Highway safety improvements
Resurfacing and maintenance projects
Long-term transportation infrastructure
While the additional cost per ride is minimal—generally between 15 to 30 cents—it represents a significant shift in how the state funds its transportation system. As reliance on fuel taxes diminishes, usage-based fees like this may play a growing role in supporting North Carolina’s infrastructure needs.