Confirmed – North Carolina to Charge 1.5% Tax on Every Uber or Taxi Ride, Even Canceled Trips
RALEIGH, N.C. — As of July 1, 2025, North Carolina introduced a new transportation commerce tax, adding 1.5% to exclusive rides and 1% to shared rides on ride-share and taxi services statewide. The surcharge applies to the total fare, including tolls and surge pricing, and is officially part of House Bill 3650, signed into law earlier this year.
What Rides Are Taxed?
- Exclusive rides (UberX, Lyft Basic) now carry a 1.5% surcharge, added to the total fare.
- Shared or pooled rides (Uber Pool, Lyft Shared) have a 1% tax.
- The tax applies to taxis and for-hire cabs as well.
- It covers full charges—base fare, distance, surcharges, tolls, and fees—with no exemptions for pickups during events like concerts or sporting events.
According to the NC Newsline report, the tax is automatically collected by the ride-share or taxi platform and included in the ride receipt.
Why Was the Tax Introduced?
Lawmakers aimed to:
- Raise revenue for public transit upgrades and transportation infrastructure.
- Level the playing field for taxis, which already faced regulatory costs.
- Ensure consistent revenue from modern transportation alternatives as ride-sharing continues to grow.
Public transit advocates praised the measure as a small but meaningful way to fund system improvements.
How Much Will Your Ride Cost?
Here’s a cost estimate for a typical ride:
| Ride Type | Fare Before Tax | Approx. Tax Rate | Total Fare Increase |
|---|---|---|---|
| Exclusive (UberX) | $20.00 | 1.5% | +$0.30 |
| Shared (Uber Pool) | $12.00 | 1% | +$0.12 |
Your app will display the added charge before you confirm the ride, and it should appear labeled as “NC Transit Surcharge” or similar.
Who Pays It?
- Rider pays the surcharge directly, automatically added at checkout.
- Drivers and platforms are required to collect the fee and remit it to the state’s treasury.
- Taxis and for-hire cabs must also show this tax on printed receipts and reports, according to state guidance.
Local Perspectives from Drivers and Riders
- A Charlotte Uber driver told SaludaStandard-Sentinel.com that most riders “barely noticed” the small increase at checkout.
- A Raleigh commuter said, “I rode from Raleigh-Durham airport weekly, and the extra 50 cents per ride barely changes my monthly cost.”
Still, some advocates argue the tax should be dedicated exclusively to public transit projects.
How the New Funds Will Be Used
Revenue from this tax will support:
- Public transportation improvements, including bus route expansions
- Road and bridge maintenance in urban and rural communities
- Electric vehicle (EV) infrastructure initiatives at transportation hubs
Unlike other transportation taxes, this one is earmarked specifically for transit and infrastructure, as outlined in the implementation summary on the NC government’s legislative portal.
What Riders Should Know
- Check your receipt: Look for “NC Transit Surcharge” to ensure it’s properly included.
- Shared vs. exclusive rides: Know whether you’re paying 1% or 1.5% tax.
- Plan for holidays or events: Some ride zones may include tolls plus the surcharge.
- Prefer public transit? These funds aim to improve options like GoTriangle and CATS routes.
Are you noticing the surcharge on your ride receipts? Do you think this benefits public transport, or does it add up? Share your perspective at SaludaStandard-Sentinel.com. We’re collecting real feedback from riders, drivers, and local transit officials.
