Diapers, wipes, tampons could be tax-free in NC 

Several personal care products could be less expensive in North Carolina starting April 1, 2027. 

The North Carolina House on Tuesday evening gave final approval to House Bill 1200, the “Tax-Free Family Essentials Act,” which would exempt diapers, baby wipes, and feminine hygiene products from state and local sales taxes. House Bill 1200 now goes to the Senate. 

North Carolina’s combined state and local sales tax rates range from 6.75% to 8.25%, depending on the county and municipality. 

Rep. Mike Schietzelt, R-Wake, one of the bill’s primary sponsors, said the bill would collectively save North Carolina women and families $75 million annually. 

“It’s pro-affordability, it’s pro-equality, and it’s pro-family,” Schietzelt said during a House Finance Committee meeting Tuesday morning. 

The proposal comes after several years of rising prices for household essentials. The Consumer Price Index for personal care products increased 15% from May 2021 to May 2026. The category is broader than the products covered by HB 1200, but it provides one measure of how much personal care costs have increased over the past five years. 

Sherry Presnall with Diaper Train, Wake County’s diaper bank, told the committee that the average family spends about $1,200 a year on diapers. And because most childcare centers require parents to provide a daily supply of diapers, caregivers “experiencing diaper poverty” report missing up to five days of work per month, she said. 

“Diapers are not simply a household expense. They’re a workforce issue,” Presnall said. “House Bill 1200 is a practical, bipartisan, pro-family solution.” 

But free market economists recommend against tax exemptions. They argue carve-outs, though often for sympathetic causes, multiply to more and more areas — and the fewer areas that are taxed, the higher tax rates have to be on the remaining items.

Brian Balfour, senior vice president of research at the John Locke Foundation, said in a statement to Carolina Journal that the proposed exemption violates principles of sound tax policy by narrowing the tax base and treating similar purchases differently. 

“It may feel good to provide some relief to consumers of those products, but it comes only at the expense of a higher tax burden on everyone else,” Balfour said. 

The General Assembly’s nonpartisan Fiscal Research Division estimates the exemption would reduce state revenue by $49.2 million and local revenue by $24.2 million in the 2027-28 fiscal year, the first full fiscal year in which it would be in place. 

The first edition of the bill also would have exempted prenatal vitamins and over-the-counter medications for children 12 and under. However, Schietzelt wrote on X the day before the committee meeting that those provisions would be removed because they conflicted with Streamlined Sales Tax policy.  

Several other states have recently exempted similar products from sales taxes:  

• Missouri’s exemption, which took effect Aug. 28, 2025, covers both state and local sales taxes but does not apply to baby wipes. 

• Alabama’s exemption, which took effect Sept. 1, 2025, covers only state sales tax but also applies to baby formula, baby bottles, breast milk pumping equipment, breast pumps, and maternity clothing. 

Earlier this session, Democrats introduced House Bill 1079 and Senate Bill 510, identical bills to exempt menstrual products from sales taxes. 

The “Tax-Free Family Essentials Act” is the latest in a series of targeted tax breaks House Republicans have introduced this session to address affordability concerns. Their budget proposal included a provision to restore North Carolina’s back-to-school sales tax holiday for school supplies. Earlier this year, they also introduced House Bill 1032, which would eliminate local sales taxes on groceries.  

“Diapers, wipes, tampons could be tax-free in NC ” was originally published on www.carolinajournal.com.