Cost of Living in North Carolina: Smart Retirement Choice?
North Carolina is still one of the best places to retire in the United States—and for good reason. The Tar Heel State has a mild climate, beautiful landscapes, rich culture, and low cost of living. This makes it a welcoming and affordable place for retirees.
Cost of Living for Retirees in North Carolina
When considering retirement destinations, many individuals often gravitate towards well-known hotspots such as Florida, California, or the Northeast. North Carolina is a very affordable option. It provides a high quality of life without the high costs of more popular places.
Recent data shows that the cost of living in North Carolina is about 7-10% lower than the national average. This affordability is especially attractive to retirees. They often live on a fixed income and want to make their savings last longer.
The state has many fun activities. You can hike in the Blue Ridge Mountains or relax on the sandy beaches of the Outer Banks. Additionally, vibrant cities like Raleigh and Durham provide a wealth of cultural experiences, including museums, theaters, and dining options.
Housing Costs
Housing is one of the biggest financial advantages for retirees in North Carolina. Here’s what to expect:
● Median home price (2025): $310,000 (compared to the national median of $400,000+)
● Rent for a one-bedroom apartment: $1,100–$1,400/month depending on the city
● Coastal towns and mountain areas cost a bit more. However, they still provide good value compared to similar places in other states.
Popular retirement communities like Asheville, Wilmington, and Cary offer many choices. You can find condos, townhomes, active adult communities, and independent living facilities.
Healthcare Costs
Healthcare in North Carolina is generally in line with the national average. The state boasts several nationally ranked hospitals, including Duke University Medical Center, UNC Health, and Atrium Health in Charlotte.
● Average healthcare premium for retirees: $500–$700/month depending on coverage and age
● Medicare is widely accepted, and the state has a strong network of specialists and primary care providers.
Utilities and Daily Expenses
● Utilities (electric, water, gas, internet): $200–$300/month
● Groceries and food: Lower than average due to North Carolina’s rich agricultural base
● Transportation: Gas prices tend to hover below the national average; public transportation is available in larger cities
Retiree Tax Benefits in North Carolina
North Carolina offers a fairly tax-friendly environment for retirees:
Income Taxes
● Flat income tax rate (2025): 4.5%
● No state tax on Social Security income
● Other types of retirement income, like pensions, 401(k)s, and IRA withdrawals, are taxed at a flat rate. However, the overall tax burden is moderate compared to many other states.
Property Taxes
● Average effective property tax rate: 0.78%, which is below the national average of 0.99%
● Retirees may qualify for the Elderly or Disabled Exclusion. This can lower the taxable value of their home by 50% if they are eligible.
Sales Tax
● State sales tax rate: 4.75%
● Local rates vary, with combined rates typically around 6.75% to 7.5%
Things to Do: Activities for Retirees in North Carolina
One of the biggest reasons retirees flock to North Carolina is the lifestyle. The state offers a wide range of activities for every interest and activity level.
Outdoor Adventures
● Blue Ridge Parkway and Great Smoky Mountains National Park offer world-class hiking and scenic drives
● Golf courses galore, including Pinehurst, one of the top golf destinations in the U.S.
● Beaches like the Outer Banks and Wrightsville Beach for fishing, boating, or just relaxing
Cultural Attractions
● Historic towns like New Bern, Bath, and Beaufort
● World-class museums in Raleigh, Charlotte, and Winston-Salem
● Live music, theater, and art scenes thriving in places like Asheville and Durham
Community Engagement
● Vibrant senior centers and active adult communities
● Volunteering opportunities with animal rescues, food banks, libraries, and museums
● University classes and lifelong learning programs at institutions like Duke’s OLLI (Osher Lifelong Learning Institute) and UNC-Chapel Hill
Bottom Line
Retiring in North Carolina offers an unbeatable combination of affordability, natural beauty, cultural richness, and retiree-friendly tax policies. Whether you dream of coastal breezes, mountain mornings, or suburban convenience, there’s a corner of this state that feels just like home.
If you are considering retirement here, talk to a trusted financial advisor. They can help you check your retirement plan. They can help make sure your income, assets, and lifestyle goals match your vision.
Sources:
https://www.sofi.com/cost-of-living-in-north-carolina/
https://www.ncse.org/cost-of-living.php
Disclosures:
This information is an overview and should not be considered as specific guidance or recommendations for any individual or business.
These are the views of the author, not the named Representative or Advisory Services Network, LLC, and should not be construed as investment advice. Neither the named Representative nor Advisory Services Network, LLC gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your Financial Advisor for further information.
