How is North Carolina for retirement?

If you are considering retiring on the southeast coast, you may be torn between retiring in North Carolina and South Carolina. Both states have become popular retirement destinations for retirees looking for affordability, good weather, and plenty of recreation opportunities. Here is what to expect when you retire in North Carolina.

North Carolina is a good state for retirement due to its low taxes, good weather, outdoor activities, and low cost of living. Social security is exempted from income taxes, while other retirement incomes are taxed at a flat 5.25%. Retirees also enjoy low costs of housing, transportation, and utilities, which falls below the national average. The state gets all four seasons, and you will have plenty of things to do in each season.

Is North Carolina Tax-friendly for retirees?

North Carolina is a moderately tax-friendly state for retirees. If you receive social security benefits, you won’t pay income taxes on this income. However, other retirement incomes such as pension and retirement plan distributions are taxed at a flat income tax rate of 5.25%. The state does not levy estate taxes.

North Carolina also levies sales taxes at the state and local level. The average total sales tax is 6.98%, but in some counties, the total rate can go up to 7.50%. The state exempts prescription drugs from sales taxes, but groceries are subject to a reduced sales tax of 2%.

How much are property taxes in North Carolina?

North Carolina has one of the lowest property taxes in the United States, and the average effective property rate is 0.77%. On average, homeowners can expect to pay $770 for every $100,000 in fair market value.

If you are above 65 and your total household income is below $31,500, you can claim the low-income homestead exemption. You may be allowed to deduct up to $25,000 or 50% of taxable property value, whichever is greater.

Seniors with a total household income above $47,250 may be eligible for the Circuit Breaker Tax Deferment. This program offers a property tax deferral until a later time.

Pros of retiring in North Carolina

All four seasons

North Carolina experiences moderate temperatures in all four seasons. The summers are good for the beach, while winters are good for skiing in the mountains. Fall and spring are a good time to enjoy scenic views of the outdoors.

Low cost of living

North Carolina is an affordable state, and the cost of housing, transport, and utilities is below the national average. If you want to do business in retirement, you will pay a low corporate tax of 5% on business earnings.

Sports

North Carolina is a sports lover's paradise, and there are plenty of professional sports teams to cheer. You can decide to catch a football game, baseball, basketball, hockey, or indoor games. NBA and NFL are represented in professional sports teams. The state has major league lacrosse games, while the college scene has a fierce following.

Majestic mountains

North Carolina is known for the Smoky Mountains and the Blue Ridge Mountains, where there are sprawling resorts and communities. You can go hiking in the summer or ski in the winter. If you prefer a laid-back retirement in the mountains, you can opt to live in the mountain communities to enjoy the fresh mountain air and farm-fresh foods.

300 miles of coastline

There are more than 300 miles of white sandy beaches and sprawling coastal towns along North Carolina's coastline. If you want to live near the beach, you can find retirement communities within the coastal towns. There are resorts along the beach that serve seafood, as well as walking trails and boardwalks leading to remote islands.

Cons of Retiring in North Carolina

Threat of hurricanes

The eastern seaboard is prone to hurricanes, and North Carolina experiences a hurricane every year between June and November. The hurricane can cause flooding and intense winds, which can severely damage your home. Watch out for alerts from state authorities to save your life or even protect your property from damage.

Best places to retire in North Carolina

Charlotte

Charlotte, popularly known as the Queen City, is the largest city in North Carolina. It is the second-largest banking center based on total assets, trailing only New York. If you want to volunteer in retirement, there are many museums and performing arts venues that accept volunteers. The city has a growing healthcare sector, and you can get access to all the medical resources you need.

Asheville

If you plan to spend your retirement years exploring the outdoors, you can move into their mountain city of Asheville. This city lies in the Blue Ridge Mountains and it gives you access to the Blue Ridge Parkway and the Great Smoky Mountains National Park. It has a dynamic cultural life, and you can find sumptuous foods and drinks made using local ingredients.

Raleigh and Durham

The Raleigh and Durham area is home to the research triangle, which is named after three research universities i.e. Duke University, North Carolina State University, and the University of North Carolina. The research triangle has created a highly educated and productive workforce that is concentrated in the area. Seniors above 65 can take advantage of the available educational opportunities. The universities also provide healthcare services to retirement communities in the area.

Hendersonville

Hendersonville is also referred to as the “City of Four Seasons”, and it is popular among retirees. Seniors make up about 30% of the town’s population, and it gives retirees a small-town feel. You can find shopping, restaurants, museums, and rows of historic houses.