North Carolinaflat 4.5% income tax, 18th lowest property tax, median home $335K

Worth knowing before you move to North Carolina

North Carolina has a flat income tax that is being cut each year, 3.99% for 2026 after 4.25% in 2025, with 3.49% scheduled for 2027 if revenue triggers are met, and it does not tax Social Security. Property taxes are moderate and reassessments happen every four to eight years by county. The Research Triangle and Charlotte have driven a decade of in-migration; the mountains and the Outer Banks are second-home markets with hurricane and flood exposure on the coast.

What North Carolina taxes, and what it doesn't

North Carolina levies a flat 4.5% income tax. A household earning $75,000 pays an effective 4.0%, about $2,993 a year; at $150,000 the effective rate is 4.0%. Among the 41 states that tax income, North Carolina has the 13th lowest effective rate at $100,000 of income.

Property tax runs 0.70% of home value a year, roughly $2,345 on the state's median home of $335K. The national effective rate is about 1.10%, and North Carolina has the 18th lowest rate of the 50 states.

Combined state and local sales tax averages 7.00%, the 25th lowest in the country (the state portion is 4.75%).

For retirees: Social Security benefits are not taxed, pension income is partly exempt, and there is no estate or inheritance tax.

Capital gains are taxed as ordinary income.

Housing and the cost of living in North Carolina

North Carolina's cost of living index is 94, where 100 is the national average; that is the 21st cheapest of the 50 states.

The median home costs $335K, 10% above the national figure and the 22nd lowest among the states. A two-bedroom rents for about $1,450 a month.

Carrying costs matter as much as the price: home insurance averages $1,900 a year, flood coverage adds about $1,000 where it is needed, car insurance runs $1,390.

Budget $135 a month for electricity and gas, $460 a month in groceries for two, $1,050 a month for full-time infant care.

Safety, health and schools

Violent crime is 398 incidents per 100,000 residents in the FBI's 2023 Crime Data Explorer figures, above the median state (387); North Carolina is the 22nd most violent of the 50 by that measure. Property crime is 2,226 per 100,000.

Life expectancy is 75.7 years (County Health Rankings 2024). 11.8% of residents have no health insurance, and the state has expanded Medicaid. The Commonwealth Fund's 2023 scorecard ranks North Carolina's health system 23rd of 50.

Education Week's 2023 Quality Counts report ranks K-12 schools 29th in the country, and the state runs a school-choice voucher program.

Politics, guns and social policy

Politically, North Carolina is a competitive state that went to Trump by 3 points in 2024.

On guns, concealed-carry permits are shall-issue, and Giffords grades the state's gun laws C+.

Abortion is legal with limits. Marijuana is illegal. North Carolina is a right-to-work state, and the minimum wage is $7.25 an hour.

Climate, risk and getting around

Natural disaster risk is high. The main hazards are hurricane, tornado, flood. Annual average air quality index is 36 (under 50 is good).

North Carolina has a major hub airport, with about 175 nonstop destinations from its busiest airport.