What to Know about Retiring in North Carolina
Considering retirement in North Carolina? You’re in good company.
With its mild climate, scenic beauty, affordable living, and a laid-back lifestyle, North Carolina continues to attract retirees from across the country.
But it’s not without its tradeoffs. From hurricane risks to inconsistent access to healthcare, these are factors worth weighing.
In this guide, we’ll walk you through the pros, cons, and financial considerations to help you decide whether North Carolina is the right place to enjoy your next chapter:
- Why people are choosing North Carolina for retirement
- Best cities for retirees (+ Certified Retirement Communities)
- Tax and cost-of-living considerations
- NC resources for retirees
- Potential downsides to be aware of
Why Retirees are Choosing North Carolina
North Carolina ranks 9th in the US for the size of its 65+ population, and it’s easy to see why.
From scenic landscapes to tax-friendly policies, here are some of the top reasons retirees are choosing to call North Carolina home:
Mild, Comfortable Climate
North Carolina offers a temperate climate with four distinct seasons.
Winters are generally mild, and summers are warm without being extreme.
Coastal areas enjoy a subtropical climate, while the mountain regions in the west offer cooler air, perfect for those who enjoy seasonal variety.
Natural Beauty
Whether you’re drawn to the beaches of the Outer Banks, the Blue Ridge Mountains, or the many lakes and forests in between, North Carolina offers a diverse landscape for an active retirement.
With 10 national parks, 41 state parks, 4 national forests, 2 national seashores, and over 300 miles of coastline, you’ll never run out of places to explore.
Cost of Living
Compared to many other retirement destinations, North Carolina offers a lower cost of living.
Whether you’re looking for a mountain cabin, a coastal condo, or a suburban home near a city, retirees can often get more value for their money here.
Quality Healthcare
North Carolina is home to several nationally recognized hospitals and medical centers, particularly in cities like Charlotte, Raleigh, and Durham.
Veterans also benefit from 4 VA hospitals, located in Asheville, Salisbury, Durham, and Fayetteville, plus 27 outpatient VA clinics across the state.
Active Lifestyle and Recreation
From world-class golf courses and scenic walking trails to vibrant arts communities and cultural festivals, North Carolina offers something for every interest.
For water lovers, the state is one of the top places in the country for sailing, thanks to its vast and varied waterways like the Neuse River, Pamlico Sound, and the protected inlets around the Outer Banks.
There’s also wine country in the Yadkin Valley, charming mountain towns, and coastal communities that make it easy to build a fulfilling lifestyle around your passions.
Retiree-Friendly Tax Policy
North Carolina does not tax Social Security benefits, which can be a big advantage for retirees. While other retirement income may be subject to state income tax, the overall tax burden is considered moderate and competitive.
Best Cities to Retire in North Carolina
Whether you’re looking for city living, natural beauty, or small-town charm, North Carolina has something for everyone.
Here are some of the top cities to consider:
Raleigh
In 2025, NC’s state capital Raleigh ranked among Forbes’ top 25 places to retire in the US.
According to Forbes, Raleigh earned its spot thanks to its favorable ratio of primary care doctors to residents, strong air quality, comfortable year-round climate. The city also stands out for being highly bikeable, making it easy for retirees to stay active and independent.
With world-class healthcare, top universities, and a thriving arts scene, Raleigh is ideal for retirees who want to stay engaged and connected.
The average Raleigh home value is $437,000.
- Charlotte
As North Carolina’s largest city, Charlotte offers professional sports, cultural events, and plenty of big-city conveniences, while still maintaining a relatively affordable cost of living.
One of the city’s standout features is its access to top-rated healthcare, with highly regarded hospitals, convenient locations, and extended hours that give residents peace of mind.
It’s a great fit for retirees who want an active, urban lifestyle with southern hospitality.
The average Charlotte home value is $398,000.
- Asheville
Nestled in the Blue Ridge Mountains, Asheville is a haven for creatives and nature lovers alike.
The city is known for its art galleries, local breweries, vibrant downtown, and easy access to scenic hiking trails. No matter your activity and fitness level, there are plenty of ways to enjoy our great outdoors from picnics to hiking and mountain biking.
The average Asheville home value is $470,000.
Certified Retirement Communities in North Carolina
North Carolina is one of the few states that officially recognizes communities designed to meet the needs of retirees.
Currently, 18 cities and towns have earned the designation of Certified Retirement Community: a recognition granted by the North Carolina General Assembly.
These communities are evaluated against strict, measurable criteria that ensure they offer the amenities, services, and lifestyle opportunities today’s retirees value most. The goal? To take the guesswork out of finding a retirement-friendly place to live.
To qualify as a Certified Retirement Community, localities must meet standards such as:
- A hospital or emergency medical services within 30 miles
- Strong local support from organizations, media, and businesses for 55+ residents
- A comprehensive plan for enhancing quality of life for retirees through housing, recreation, and engagement
While there are many wonderful places to retire in North Carolina, this official certification signals a deeper, community-wide commitment to supporting the needs of retirees.
Explore the full list of Certified Retirement Communities in NC here.
Financial Considerations
When it comes to taxes, North Carolina is moderately tax-friendly for retirees.
While it offers some significant benefits, there are a few important nuances to be aware of.
Tax Advantages for Retirees
- No tax on Social Security benefits: retirees collecting Social Security will appreciate that North Carolina does not tax these benefits, offering a meaningful income advantage over some other states.
- No estate or inheritance tax: North Carolina has eliminated both estate and inheritance taxes, allowing retirees to leave more to heirs without state tax consequences.
Taxes on Retirement Income
While Social Security is exempt, most other retirement income is taxable, including:
- Traditional IRAs
- 401(k)s
- Pension distributions
These are taxed at the state’s flat income tax rate.
Current tax rates
- Income tax: 4.25% (flat rate)
- Scheduled to drop to 3.99% by 2026
- Sales tax: Base rate is 4.75% but local taxes can push it up to 7.5% in some areas
- Property tax: The average effective property tax rate is 0.73%, which is below the national average. However, rates vary by county.
Homestead Property Exemption
Retirees over age 65 with a permanent disability and low income may qualify for North Carolina’s Homestead Property Exemption.
This program excludes a portion of your home’s appraised value from property taxes, helping you reduce your annual tax burden.
Resources for Retirees
North Carolina offers a wide range of programs and services to help retirees settle in, stay healthy, and stay connected.
Healthcare and Insurance Support
The NC Department of Health and Human Services offers programs for healthcare, long-term care, and aging services across the state.
One of the most helpful resources for new residents is the Seniors’ Health Insurance Information Program (SHIIP).
SHIIP provides unbiased, volunteer counselors in all 100 counties to help you navigate Medicare and other health insurance options completely free of charge.
Nutrition Assistance
The Senior Farmers Market Nutrition Program gives eligible retirees vouchers for fresh fruits and vegetables that can be used at local farmers’ markets.
It’s a great way to stretch your grocery budget while supporting local farms.
Senior Centers & Community Programs
North Carolina has over 170 senior centers across 95 counties, offering everything from:
- Fitness classes
- Social events
- Educational workshops
- Health screenings
These centers are a great way to stay active, meet new people, and maintain a strong sense of community in retirement.
Potential Downsides to Consider Before Retiring in North Carolina
While North Carolina offers many advantages for retirees, it’s important to understand the potential drawbacks before making your move. Here are a few considerations to keep in mind:
Risk of Natural Disasters
North Carolina ranks fourth in the nation for hurricane activity, accounting for 19% of all US hurricanes.
However, only 6 out of 58 recorded hurricanes in the state have been classified as major, meaning many storms are less severe than those experienced in other coastal areas.
Still, the risk is real, especially with climate change increasing the frequency of extreme weather events. Even inland areas, including the mountains of Western North Carolina, have experienced flooding from hurricane-related storms, such as Hurricane Helene in 2024.
With hurricane season running from June 1 to November 30, retirees should evaluate flood zones, insurance coverage, and disaster preparedness plans as part of their retirement strategy.
Healthcare Access and Costs
North Carolina is home to several nationally ranked hospitals. However, healthcare costs are relatively high, with North Carolina ranking 8th in the US for healthcare premiums. And access to care in rural areas may be limited, with fewer specialists and longer wait times.
Retirees should factor in potential travel for medical care and explore supplemental coverage options based on their chosen region.
Traffic and Transportation Limitations
Like many growing states, North Carolina’s larger cities face significant traffic congestion, particularly in Charlotte, Raleigh, and Asheville (especially during tourist season).
Public transportation is limited outside of college towns and urban cores. In most parts of the state, owning a car is necessary for daily errands and appointments.
Walkability and transit scores for selected cities:
- Charlotte: Walk Score 26 / Transit Score 27 / Bike Score 31
- Raleigh: Walk Score 85 / Transit Score 71 / Bike Score 88
- Asheville: Walk Score 90 / Transit Score 53 / Bike Score 58
If easy access to amenities without driving is important to you, research walkable neighborhoods and consider retirement communities with transportation options built in.
How Capitol Financial Solutions Can Help - Have any questions? Please reach out to Andrew at arose@capfs.com
With decades of specialized experience helping individuals and families retire comfortably in North Carolina, Capitol Financial Solutions partners with you to create a personalized, comprehensive retirement plan, covering everything from housing and taxes to healthcare and cost of living.
We’re here to help ensure that your finances support the retirement lifestyle you’ve envisioned, so you can enjoy peace of mind today and security for the years ahead.