North Carolina vs. South Carolina for Retirement: A Census Comparison

The Carolinas combined now absorb more 60+ in-migrants than any region in the country except Florida. The two states share weather, geography, and cultural feel — but the practical retirement math differs in ways that change which one is the right choice.

State income tax: nearly identical, with a twist

North Carolina has a flat 4.5% income tax rate (scheduled to step down further in coming years per state legislation). Social Security is fully exempt. 401(k) and IRA distributions are taxed at the flat 4.5%.

South Carolina has a graduated income tax topping out at 6.2%, but with substantial retirement income deductions — taxpayers 65+ can deduct $15,000 of any income (or $30,000 for joint filers, both 65+). Social Security is fully exempt. After deductions, most middle-income retirees pay less in SC than NC.

Property tax

Both states have moderate effective property tax rates, well below Texas. South Carolina's property tax for owner-occupied primary residences is one of the lowest in the country (effective rate around 0.5–0.6% on the primary residence, with second homes taxed much higher). North Carolina runs around 0.7–0.8% effective rate.

For most retirees who own and occupy their home, SC property tax wins by a meaningful margin.

Housing cost

South Carolina's median home value (B25077) sits below North Carolina's by roughly 10–15% statewide. The gap is largest at the coast: Hilton Head and Bluffton are still cheaper than the NC Outer Banks, and the SC midlands (Columbia, Aiken) are well below NC Piedmont.

NC mountain markets (Asheville, Brevard) and Pinehurst have priced up significantly in the last five years and now exceed comparable SC markets.

Healthcare

North Carolina's healthcare anchors are decisive: Duke University Health (Durham), UNC Health (Chapel Hill), Wake Forest Baptist (Winston-Salem), and Atrium Health (Charlotte) collectively make NC one of the strongest healthcare states in the country. The Triangle (Raleigh-Durham-Chapel Hill) in particular is a top-tier retiree healthcare market.

South Carolina's anchors (MUSC in Charleston, Prisma in Greenville and Columbia) are strong but smaller in absolute scale. For retirees with significant health concerns, NC has the edge.

Where retirees actually go

Census ACS5 migration data shows the dominant flows: NC retirees concentrate in the mountains (Asheville-Hendersonville-Brevard), the Pinehurst/Sandhills area, the Wilmington coast, and the Triangle suburbs (Cary, Apex). SC retirees concentrate at the coast (Hilton Head, Bluffton, Beaufort, Murrells Inlet, Pawleys Island) and around Greenville/Anderson in the Upstate.