State comparison
North Carolina vs Tennessee: which state is better to live in?
Tennessee costs a median household about $3,200 a year less in state and local taxes than North Carolina, mostly because it has no income tax.
North Carolina
Moderate tax burden · COL index 94
Wins 7 categories
Tennessee
Low tax burden · COL index 92
Wins 8 categories
Taxes: North Carolina vs Tennessee
North Carolina has a flat 4.5% income tax, which works out to 4.0% on a median income of $74,580, or $2,976 a year. Tennessee has no state income tax. Tennessee wins on income tax at 2026 rates.
Property tax is 0.70% of home value a year in North Carolina and 0.45% in Tennessee (Tax Foundation, 2023); on each state's median home that is $2,345 against $1,575, so Tennessee has the lower rate.
Combined state and local sales tax averages 7.00% in North Carolina and 9.55% in Tennessee; North Carolina is lower.
Add it up for a household earning $74,580 (the 2022 national median) and owning the median home: $6,887 a year in North Carolina, $3,712 in Tennessee. Tennessee is cheaper on total state and local tax.
Housing and cost of living
North Carolina's cost of living index is 94 and Tennessee's is 92, where 100 is the national average; Tennessee is about 2% cheaper day to day.
The median home costs $335K in North Carolina and $350K in Tennessee (Zillow, 2024), a $15K gap in North Carolina's favor. A two-bedroom rents for about $1,450 a month in North Carolina and $1,400 in Tennessee.
Home insurance averages $1,900 a year in North Carolina and $2,000 in Tennessee, so North Carolina is cheaper to insure.
Safety
Violent crime runs 398 incidents per 100,000 residents in North Carolina and 668 in Tennessee (FBI Crime Data Explorer, 2023); North Carolina is the safer state by that measure, with a rate 68% lower. Property crime is 2,226 per 100,000 in North Carolina against 2,752 in Tennessee, again favoring North Carolina.
Health
Life expectancy is 75.7 years in North Carolina and 74.2 in Tennessee (County Health Rankings, 2024), a 1.5-year edge for North Carolina. The Commonwealth Fund's 2023 scorecard ranks North Carolina's health system 23rd of 50 and Tennessee's 39th, so North Carolina scores better on care.
11.8% of North Carolina residents have no health insurance against 10.4% in Tennessee, which favors Tennessee. North Carolina expanded Medicaid and Tennessee did not.
Schools
Education Week's 2023 Quality Counts report ranks North Carolina's K-12 schools 29th in the country and Tennessee's 41st, 12 places apart in North Carolina's favor. Both states run school-choice voucher programs.
Laws and politics
In the 2024 presidential election North Carolina went to Trump by 3 points and Tennessee went to Trump by 24 points.
North Carolina has shall-issue carry permits and a Giffords gun-law grade of C+; Tennessee has permitless carry and a grade of F, so North Carolina regulates guns more tightly and Tennessee is the friendlier state for gun owners.
Abortion is legal with limits in North Carolina and banned with narrow exceptions in Tennessee, and marijuana is illegal in both as of 2026. The minimum wage is $7.25 an hour in North Carolina and $7.25 in Tennessee.
Climate and risk
Natural disaster risk is high in North Carolina (hurricane, tornado, flood) and moderate in Tennessee (tornado, flood, ice-storm), so Tennessee is the lower-risk state. Annual average air quality index is 36 in North Carolina and 36 in Tennessee (under 50 is good).
Tax figures use a household earning the national median income and owning each state's median home, at tax year 2026 rates, last checked against state sources on 2026-09-14. The table below has every number.
Taxes
Housing & Cost of Living
Crime & Safety
Healthcare
Education
Childcare
Utilities & Daily Costs
Social Policy
Category wins
7
North Carolina
8
Tennessee
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Score For My Profile →Questions people ask
Is North Carolina or Tennessee better to live in?
It depends on what you weigh most. Tennessee on taxes ($3,712 a year for a median household against $6,887); Tennessee on everyday costs (index 92 against 94); North Carolina on safety (398 violent crimes per 100,000 against 668); North Carolina on schools (ranked 29th against 41st).
Which is cheaper, North Carolina or Tennessee?
Tennessee is cheaper day to day: cost of living index 92 against 94. The median home is $335K in North Carolina and $350K in Tennessee (2024). On state and local taxes Tennessee saves a median household about $3,200 a year.
Does North Carolina or Tennessee have lower taxes?
Tennessee. A household earning $74,580 pays about $6,887 a year in North Carolina ($2,976 income tax, $2,345 property tax on the median home and $1,566 in sales tax) and $3,712 in Tennessee ($0 income tax, $1,575 property tax on the median home and $2,137 in sales tax), at 2026 rates.
Which is safer, North Carolina or Tennessee?
North Carolina, on the FBI's 2023 figures. Violent crime is 398 per 100,000 residents in North Carolina and 668 in Tennessee; property crime is 2,226 against 2,752.
Which has better schools, North Carolina or Tennessee?
North Carolina. Education Week's 2023 Quality Counts report ranks North Carolina 29th of 50 for K-12 and Tennessee 41st.
Is North Carolina or Tennessee better for retirees?
Tennessee is friendlier to retirees on paper. North Carolina does not tax Social Security, partly exempts pensions and has no estate or inheritance tax; Tennessee does not tax Social Security, exempts pensions and has no estate or inheritance tax. Property tax on a median home is $2,345 a year in North Carolina and $1,575 in Tennessee.