Four-season retirement with mountains, coast, and the Research Triangle. Flat income tax, no Social Security tax, and exceptional healthcare from Duke and UNC.
| State income tax | Flat 4.25% |
| Social Security | Fully exempt |
| Pensions & 401k/IRA | Most pensions taxed; Bailey settlement exempts certain federal/state pensions vested before 1989 |
| Avg combined sales tax | 6.99% |
| Estate / inheritance tax | None |
Effective property tax: 0.73% (ranked #19 of 50 states).
Elderly/disabled homestead exclusion: $25K or 50% of value (whichever greater) for income under ~$36K
Cost of living index: 95.3 where the US average is 100 — about 5% cheaper than the national average.
Four distinct seasons. Mild winters in the Piedmont; cooler in the mountains; warm humid summers statewide.
Excellent — Duke Health, UNC Health, Atrium Health. Research Triangle has world-class care.
Asheville, Wilmington, Pinehurst
No, North Carolina does not tax Social Security retirement benefits.
Flat 4.25%. Flat 4.25% in 2025, scheduled to step down further on the NC phase-down; Social Security fully exempt.
North Carolina's cost of living index is 95.3 where the US average is 100. Effective property tax averages 0.73% and combined sales tax averages 6.99%.
Popular retirement spots in North Carolina include Asheville, Wilmington, Pinehurst.
Enter your retirement income and estimate what you'd actually pay in North Carolina in 30 seconds.
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Tax data current as of 2026 publication. Rates and rules change annually — verify with a CPA before relocating. This page is educational and not personalized tax or legal advice.