Side-by-side for American retirees in 2026.
Four-season retirement with mountains, coast, and the Research Triangle. Flat income tax, no Social Security tax, and exceptional healthcare from Duke and UNC.
Cheaper than its northern neighbor, with one of the most generous retirement income deductions in the country. Coastal retirement hubs and historic charm.
| Flat 4.25% | Income tax | Progressive, top 6.2% |
| Exempt | Social Security | Exempt |
| Flat 4.25% in 2025, scheduled to step down further on the NC phase-down; Social Security fully exempt | Pension treatment | $15K/person retirement deduction at 65+; Social Security fully exempt |
| 0.73% | Property tax (effective) | 0.53% |
| 6.99% | Avg combined sales tax | 7.50% |
| 95.3 | Cost of living (US=100) | 95.0 |
| None | Estate / inheritance tax | None |
| Four distinct seasons. Mild winters in the Piedmont; cooler in the mountains; warm humid summers statewide. | Climate | Warm humid summers, mild winters. Low country (Charleston, Hilton Head) is hot and humid; upstate (Greenville) is cooler. |
| Excellent — Duke Health, UNC Health, Atrium Health. Research Triangle has world-class care. | Healthcare | Solid in major metros — MUSC (Charleston), Prisma Health (Greenville). More limited in rural areas. |
| Asheville, Wilmington, Pinehurst | Top retirement cities | Hilton Head Island, Charleston, Bluffton |
Elderly/disabled homestead exclusion: $25K or 50% of value (whichever greater) for income under ~$36K
$50K homestead exemption + first $100K of home value exempt from school operating tax for 65+
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. South Carolina: Cheaper than its northern neighbor, with one of the most generous retirement income deductions in the country. Coastal retirement hubs and historic charm. The right choice depends on your income mix, climate preference, and whether state income tax matters more to you than property tax.
No, North Carolina does not tax Social Security retirement benefits.
No, South Carolina does not tax Social Security retirement benefits.
North Carolina's cost of living index is 95.3 (US = 100). South Carolina's is 95.0. South Carolina is cheaper on average.
Enter your retirement income and see the after-tax difference between North Carolina and South 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.