How Much Does It Cost to Live in North Carolina?

North Carolina has emerged as a popular destination, attracting new residents with its diverse landscapes and growing economic opportunities. This article provides a comprehensive breakdown of the typical costs associated with residing in North Carolina, covering major expenses that impact daily life. While overall costs are generally moderate, specific expenditures can vary depending on individual circumstances and geographic location within the state.

Housing Costs

Housing represents a significant portion of the cost of living for residents in North Carolina. For renters, the average monthly cost for a one-bedroom apartment in North Carolina is around $1,359, while a two-bedroom apartment typically averages $1,551 per month as of August 2025. These figures can fluctuate, with urban centers often seeing higher rents compared to more suburban or rural areas of the state.

For those looking to purchase a home, the median home price in North Carolina was approximately $367,600 in January 2025, reflecting a 3.8% increase from the previous year. This median price is lower than the national median home price of $437,923.

Property taxes in North Carolina are assessed at the county level and are a notable component of homeownership costs. The state utilizes an “ad valorem” system, meaning taxes are based on the property’s assessed value, which county assessors determine. Properties must undergo revaluation at least once every eight years to reflect current market values. The effective property tax rate in North Carolina is approximately 0.73%, which is below the national average. This translates to a median annual property tax bill of around $1,724, significantly less than the national median.

Everyday Expenses

Daily living expenses contribute substantially to the overall cost of living. Groceries constitute a regular expenditure, with an average North Carolina family spending around $1,064 per month on groceries as of May 2024. This equates to approximately $266 per week.

Utility costs also form a considerable part of monthly budgets. The average cost for electricity, water, and natural gas or fuel in North Carolina is about $260 per month. Including cable and internet services can increase this total to nearly $400 per month. The average monthly electric bill for residential customers in North Carolina is around $209.

Transportation expenses vary depending on individual reliance on personal vehicles and access to public transit. Average gasoline prices in North Carolina were around $2.85 per gallon as of August 2025. Public transportation options are available in major urban areas, with a monthly public transport ticket in Raleigh costing approximately $78.

Taxation and Healthcare

North Carolina’s tax structure includes state income tax and sales tax, which directly impact residents’ disposable income. For tax year 2024, North Carolina implemented a flat individual income tax rate of 4.50%. This flat rate applies to all taxable income, regardless of the income level. The state legislature has enacted further reductions, with the rate set to decrease to 4.25% for tax year 2025 and 3.99% for tax years after 2025.

The statewide sales tax rate in North Carolina is 4.75%. Counties are permitted to levy additional local sales taxes, resulting in an average combined state and local sales tax rate of 7.00%. This means that for every dollar spent on taxable goods and services, a portion goes towards state and local government revenues.

Healthcare costs are another significant financial consideration. The average monthly premium for a benchmark health plan on the health insurance marketplace in North Carolina is approximately $495. For a 40-year-old individual purchasing a Silver plan, the average cost is around $664 per month in 2025. The overall average annual health insurance premium in North Carolina reached $7,742 in the past year, which was among the lower costs nationally.

Regional Differences in Cost of Living

The cost of living in North Carolina is not uniform across the state, with significant variations observed between metropolitan, suburban, and rural areas. Major urban centers like Raleigh, Charlotte, and Durham experience higher costs, particularly concerning housing. For example, in November 2024, the median rent for a one-bedroom apartment in Charlotte was $1,282, and in Raleigh, it was $1,219, whereas in Greensboro, it was $1,001. The median home price in Charlotte was reported at $405,900 in October 2024, reflecting higher housing values in comparison to the state’s median.

Smaller cities and rural parts of North Carolina generally offer more affordable living. Lexington, for instance, provides a notable example of affordability, with average rents for a one-bedroom apartment around $850 and a two-bedroom around $1,000. Home prices in Lexington are also considerably lower, averaging approximately $220,000.

Transportation costs also vary regionally. Public transportation is more prevalent in major cities like Raleigh where a monthly pass is $78. In more rural areas, reliance on personal vehicles is greater, meaning gasoline prices and vehicle maintenance costs become a larger factor. Even utility costs can show regional disparities, with some areas like Durham-Chapel Hill experiencing utility costs 10% lower than the national average, while coastal areas like Kill Devil Hills might see utilities that are 8% more expensive. Location within North Carolina plays a substantial role in determining an individual’s overall cost of living.