How is the excise tax in North Carolina calculated on a sales price of $196,000?

The excise tax in North Carolina on a property sale is calculated based on the sales price of the property at a rate of $1 for every $500 of the sales price. To compute the excise tax for a sales price of $196,000, you would first divide the sales price by 500.

When you calculate (196,000 \div 500), you get 392. This means that the excise tax due is $392. This is a standard calculation used statewide, making it an essential concept for anyone involved in real estate transactions in North Carolina. Understanding this calculation is crucial for ensuring accurate financial assessments during property sales.