We are reader-supported. When you buy through links on our site, we may earn an affiliate commission.
There’s little wonder why so many people flock to North Carolina each year, from the state’s mild winters to its pristine coastlines and mountainous landscapes. Of course, the cost of living in North Carolina is just as appealing.
Some areas are more affordable than others. For instance, Charlotte or Raleigh is far more expensive than Duplin or Rocky Mount. Nevertheless, living in the Tar Heel State will save you more money than elsewhere. Here’s everything you need to know about living costs in North Carolina.
Have a quick look at North Carolina’s cost of living:
| Housing | 9% less than the national average |
| Food | $4,357 per year |
| Utilities | $555.01 per month |
| Healthcare | $800 per month |
| Transportation | $3.55-$4.61 per gallon |
| Entertainment | $1,968 per capita |
| State and local taxes |
3.99% individual income tax rate 0.66 effective property tax rate 7% average combined state and local sales tax |
The cost of living in North Carolina is usually close to the national median. In 2025, World Population Review placed it in the middle of the pack based on an index that considered housing, utilities, food, transportation, healthcare, and miscellaneous goods and services, and that included Washington, D.C. The calculations excluded state taxes, though.
There’s good news if you are hoping to move to North Carolina in the near future. The state government expects to create 262,700 new jobs from 2024 to 2034. This projection suggests an annual growth rate of 0.49%, which is faster than the national average over the same period.
Many companies are also investing in expansions across North Carolina, including Google, Meta, Microsoft, Amazon and Toyota. The Triangle, or the Raleigh-Durham region, has attracted most of the big-name technology companies.
Does your salary cover living costs in North Carolina? Ultimately, your exact location matters. Here are the essential goods and services you must budget for to survive.
It costs 9% less to buy or rent in the state than the national average.
As of May 31, 2026, the typical home value was $339,236, unchanged from the year-ago level.
Interestingly, median rents in smaller towns are higher than those in the largest cities. As of September 24, 2025, 50% of rents in Charlotte were under $1,819, more than $200 below the median rent in Wake Forest.
These housing statistics indicate that North Carolina has a balanced real estate market, and more people are moving to less crowded areas.
Inflation has made affording groceries difficult in recent years. A single adult household without children will pay roughly $4,252 in food costs annually in North Carolina. A home with two working adults and two dependents could pay $12,498 in groceries.
According to the U.S. Bureau of Labor Statistics, consumer prices across the South rose 0.6% in January 2024, with food at home rising 0.2%.
Although groceries in North Carolina are cheaper than in other states, many families are left wondering where their next meal will come from. According to the Food Research & Action Center, childhood hunger affects 1 in 4 children, while 1 in 3 children go hungry in rural areas.
As of February 15, 2026, a single adult household without a child had to earn a living wage of $22.47 to afford an annual food budget of $4,357, along with other basic expenses.
The consumer price index in the South supports the notion that cooking at home is more affordable than dining out. In May 2026, consumers paid 0.2% less for groceries month over month, driven by declines across many food group indexes. On the contrary, the index for food away from home jumped by 0.3% over the month.
Although most people agree that preparing home-cooked dishes costs less than eating at restaurants, North Carolina has many food deserts. In Guilford County alone, residents from 27 areas have limited access to fresh meat, fruits and vegetables.
Regarding utility expenses, the living costs in North Carolina are among the lowest in the United States. As of June 9, 2026, here’s a breakdown of the average monthly cost per utility service in the state.
The total amount was $555.01. No state law strictly mandates homeowners to use public utility services, so you have considerable latitude in reducing your expenses through self-sufficiency and frugal living.
In 2024, 8.6% of the state’s population was uninsured. Forty-six percent had employer-sponsored insurance, 20% relied on Medicare, 15.6% depended on Medicaid and 6.9% got covered from a policy directly bought from an insurance company.
Since then, many events have made health insurance less attainable in North Carolina. That’s why the monthly health insurance cost statewide skyrocketed from $664 in 2025 to $800 in 2026, a 21% spike.
In 2026, the state saw 214,000 fewer enrollments in health coverage under the Affordable Care Act (ACA), a 22% decline. Behind the sharp drop were the insurance commissioner’s approval of an average rate hike of almost 30% for ACA plans and the expiration of enhanced tax credits implemented during the pandemic.
Moreover, the State Health Plan board of trustees voted to change the cost-sharing benefits retirees receive through Humana’s Medicare Advantage Base or Enhanced plan, which would take effect in 2027. With this development, the annual out-of-pocket maximum for Base and Enhanced plan members would jump by $500 and $400, respectively. Co-payment increases would range from $10 to $75, depending on the service and plan.
As of July 2, 2026, the state’s average gas prices were $3.55 for regular, $4.03 for midgrade, $4.43 for premium and $4.61 for diesel.
Major North Carolinian cities have public transportation options to save money on car-related expenses. Charlotte has a light rail line and a streetcar system. Raleigh, Durham, Greensboro, Asheville and Wilmington have urban bus operations with fixed routes. The Chapel Hill Transit has been serving the Chapel Hill, Carrboro and University of North Carolina communities fare-free for over 20 years, thanks to federal grants and other partnerships between local stakeholders.
In 2023, people in North Carolina spent $21.3 billion on recreation services, such as gym memberships, live events and other pay-to-play activities. When adjusted for the state population, it translated to $1,968 per capita.
The Tar Heel State has diverse entertainment options, including nightlife, gaming, sports, museums, theater productions, concerts and amusement parks.
North Carolina ranks 11th among the most competitive state tax systems in the country. However, the state is less competitive in terms of the taxes consumers pay. It places 15th, 21st and 22nd in rankings for sales, property and individual income taxes, respectively.
Nevertheless, the state government has been gradually lowering its individual income tax rate for many years. It’s just 3.99% for 2026, reflecting a significant fall from the 5.75% rate income-earning residents paid in 2015.
Although effective property tax rates vary from county to county, expect to pay 0.66% of your house’s assessed value.
The declining individual income tax rate and balanced local real estate markets mean your tax liability may not go up in the near future if you work and live in the state. You may even deduct the interest on primary and second mortgages to further reduce your expenses.
However, the average combined state and local sales tax can reach 7%. Consumption dictates your total sales tax costs, so they’re within your control.
North Carolina has something for everyone — beaches, mountains, small-town living and vibrant cities. While some areas may be pricier than others, the state is an excellent place for families, singles and retirees to make roots and save money.
Note: This article was first published on March 20, 2024, and was revised on July 6, 2026 to reflect the most current information.
