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.
Big, varied, and tax-friendly. No state income tax, lower cost of living than Florida, and three distinct retirement regions (Hill Country, Gulf Coast, North Texas).
| Flat 4.25% | Income tax | No state income tax |
| 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 | All retirement income state-tax-free |
| 0.73% | Property tax (effective) | 1.63% |
| 6.99% | Avg combined sales tax | 8.20% |
| 95.3 | Cost of living (US=100) | 92.6 |
| None | Estate / inheritance tax | None |
| Four distinct seasons. Mild winters in the Piedmont; cooler in the mountains; warm humid summers statewide. | Climate | Highly varied. Hot humid summers statewide. Hill Country mild winters; Panhandle has snow; Gulf Coast similar to Florida. |
| Excellent — Duke Health, UNC Health, Atrium Health. Research Triangle has world-class care. | Healthcare | Strong in major metros — MD Anderson Cancer Center (Houston), Houston Medical Center, Dallas-area systems. Rural Texas healthcare is weaker. |
| Asheville, Wilmington, Pinehurst | Top retirement cities | Fredericksburg, San Antonio, Georgetown |
Elderly/disabled homestead exclusion: $25K or 50% of value (whichever greater) for income under ~$36K
$100K homestead exemption (2023) + senior 65+ school tax freeze + additional $10K senior exemption
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. Texas: Big, varied, and tax-friendly. No state income tax, lower cost of living than Florida, and three distinct retirement regions (Hill Country, Gulf Coast, North Texas). 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, Texas does not tax Social Security retirement benefits.
North Carolina's cost of living index is 95.3 (US = 100). Texas's is 92.6. Texas is cheaper on average.
Enter your retirement income and see the after-tax difference between North Carolina and Texas 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.