Cost of Living in North Carolina
Things cost about ▼ 6% less in North Carolina than the national average.
What Things Cost in North Carolina
Compared to the US national average
See raw index numbers
US national average = 100. Source: BEA Regional Price Parities 2023.
North Carolina has become one of the most popular relocation destinations in America, and the numbers explain why. The cost of living is about 4% below the national average, the flat 4.5% income tax is competitive, and the state offers three distinct lifestyle zones: the Research Triangle (Raleigh-Durham-Chapel Hill) with its tech and university concentration, Charlotte with its banking and financial services industry, and the Blue Ridge Mountains around Asheville. All three are growing rapidly, with housing costs rising but still remaining well below peer cities in other states. The combination of economic opportunity, moderate climate, and affordability is hard to match.
North Carolina at a Glance
Taxes in North Carolina
North Carolina's state income tax tops out at 4.25% flat. The combined sales tax averages 4.75%, which is relatively low. Property taxes run about 0.73% of home value, which on a $296,000 median home means roughly $2,161/year.
Cities in North Carolina
Ranked from least to most expensive. Index 100 = national average.
Explore North Carolina
FAQ About North Carolina
For many people, yes. North Carolina offers below-average cost of living, a flat 4.5% income tax, diverse metro areas with strong job markets, and four-season climate with moderate winters (outside the mountains). Charlotte and the Research Triangle have seen enormous growth because they offer career opportunities comparable to more expensive metros at lower cost. Asheville attracts lifestyle-focused relocators. The state's popularity means housing prices are rising, but they remain below national averages in most areas.
They are similar overall, with Charlotte having slightly lower housing costs and Raleigh having a slightly higher median income. Both are well below the national average for major metro cost of living. Charlotte's banking industry and Raleigh's tech sector offer different career paths at comparable living costs. The choice between them is more about lifestyle and career fit than cost.
North Carolina has a flat 4.5% state income tax, which is among the lower rates for states that levy an income tax. The rate has been reduced gradually from 5.25% and may continue to decline. Social Security is not taxed. For someone earning $100,000, the state income tax is roughly $4,500, which is straightforward to plan around.