The North Carolina Department of Revenue, in the United States, has launched a tax collection measure aimed at improving the state’s road infrastructure. This initiative consists of charging a state tax to private transportation companies such as Uber, as well as to traditional cab services. The amount of the tax will vary depending on the type of trip, i.e. whether it is an exclusive trip or a shared trip. Those who want to travel alone or choosing a companion will have to pay more for the trip. The tax will be charged even if the trip is not completed, and will be used entirely to improve road infrastructure.
Uber vs Taxi
Of U.S. origin, it is one of the best-known mobility companies in the world. It operates in more than 900 metropolitan areas around the world and is headquartered in San Francisco. It emerged in 2009, and has been gradually gaining ground. It is the main competition of traditional Taxis, offering more affordable prices, personalized travel experiences and digital payment among many others.
New tax
As of July 1 of this year 2025, the new tax on Uber rides or any other private transportation service in North Carolina went into effect. In collaboration with the North Carolina Department of Revenue, the state has decided to implement this state tax in order to raise funds to invest in the improvement of road infrastructure or otherwise. The details of this new measure establish that it will proceed as follows:
- Exclusive travel. If the passenger decides to hire the service on an exclusive basis or choosing a companion, he/she will have to pay more for the service. The surcharge is 1.5%.
- Shared trip. The passenger accepts to share the trip with strangers assigned by the app. In this case, the tax is 1%.
This is intended to encourage the shared use of private means of transport, in order to reduce emissions. If, on the other hand, you prefer to travel alone, there will be an additional cost.
Differences between Uber and Taxi
Choosing between one option or another in the United States depends on several factors. It is true that younger generations are more familiar with the use of apps, so Uber is usually the most chosen by this sector. Factors such as price, user experience and availability are the most taken into account. The most significant differences that tip the balance to one side or the other are:
- Transportation apps have limited access to some areas, which is not the case with cabs. This is the case, for example, at airports, where the option of taking a cab would win.
- In general, for short trips and off-peak hours, Uber is usually more affordable, and offers you a price estimate before booking the trip.
- With Uber the organization and communication with the driver is more detailed, as it allows you to see his location in real time. It also allows you to pay digitally, and rate the driver, which is very useful when choosing based on the experiences of other users.
- A priori, Uber is cheaper than conventional cabs. However, after the implementation of this new tax, prices have been equalized, especially in exclusive trips.
How does it affect passengers?
The percentage of people using private transport is relatively low, although it is growing exponentially and steadily. The amount of the tax is barely 1% of the total, so if you use private transport occasionally, you will hardly notice the difference. However, those who use it on a daily basis will notice an increase in their monthly expenditure, especially on private journeys or at peak times, when fares are higher.