Side-by-side for American retirees in 2026.
The default American retirement state — and still the #1 destination. No state income tax, no estate tax, year-round warm weather, and the country's largest retiree community.
Four-season retirement with mountains, coast, and the Research Triangle. Flat income tax, no Social Security tax, and exceptional healthcare from Duke and UNC.
| No state income tax | Income tax | Flat 4.25% |
| Exempt | Social Security | Exempt |
| All retirement income state-tax-free | Pension treatment | Flat 4.25% in 2025, scheduled to step down further on the NC phase-down; Social Security fully exempt |
| 0.82% | Property tax (effective) | 0.73% |
| 7.00% | Avg combined sales tax | 6.99% |
| 102.8 | Cost of living (US=100) | 95.3 |
| None (no estate or inheritance tax) | Estate / inheritance tax | None |
| Hot/humid year-round, especially May–October. Mild winters statewide. Hurricane season June–November. | Climate | Four distinct seasons. Mild winters in the Piedmont; cooler in the mountains; warm humid summers statewide. |
| Strong — large hospital systems statewide (Cleveland Clinic Florida, Mayo Jacksonville, AdventHealth). Above-average Medicare Advantage options. | Healthcare | Excellent — Duke Health, UNC Health, Atrium Health. Research Triangle has world-class care. |
| The Villages, Sarasota, Naples | Top retirement cities | Asheville, Wilmington, Pinehurst |
$50,000 homestead exemption + 'Save Our Homes' 3% annual cap on assessment increases
Elderly/disabled homestead exclusion: $25K or 50% of value (whichever greater) for income under ~$36K
Florida: The default American retirement state — and still the #1 destination. No state income tax, no estate tax, year-round warm weather, and the country's largest retiree community. North Carolina: Four-season retirement with mountains, coast, and the Research Triangle. Flat income tax, no Social Security tax, and exceptional healthcare from Duke and UNC. The right choice depends on your income mix, climate preference, and whether state income tax matters more to you than property tax.
No, Florida does not tax Social Security retirement benefits.
No, North Carolina does not tax Social Security retirement benefits.
Florida's cost of living index is 102.8 (US = 100). North Carolina's is 95.3. North Carolina is cheaper on average.
Enter your retirement income and see the after-tax difference between Florida and North Carolina in 30 seconds.
Open tax estimator →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.