Is $70,000 a Good Salary in North Carolina?

A $70,000 annual salary in North Carolina can be considered a solid income, yet its perceived “goodness” is inherently subjective. While this amount provides a comfortable living for many, its sufficiency ultimately hinges on individual financial circumstances, lifestyle choices, and geographic location within the state. A comprehensive financial evaluation involves examining objective metrics such as the cost of living, the burden of taxation, and the variations in expenses across different regions. Understanding these factors allows for a more informed assessment of how a $70,000 salary translates into actual purchasing power and overall financial comfort.

Cost of Living in North Carolina

The cost of living in North Carolina generally sits below the national average, making it an attractive destination for many. Housing represents a significant portion of expenses, with average rents varying based on apartment size. As of August 2025, a one-bedroom apartment typically costs around $1,359 monthly, while a two-bedroom unit averages about $1,551 per month. For those considering homeownership, the median price for a single-family home in North Carolina was approximately $425,000 in June 2025. Housing costs across the state are notably lower than the national average, often around 14% less.

Beyond housing, utilities also contribute to monthly expenditures. The average utility costs in North Carolina are estimated to be around $371 per month. This figure encompasses essential services like electricity, water, and natural gas or fuel, which can average about $260 monthly, rising to nearly $400 with the inclusion of cable and internet services. An average electric bill alone is about $209 per month, and internet services typically range from $50 to $70 per month. Overall, utility expenses in North Carolina tend to be about 2% lower than the national average.

Transportation costs are another important consideration, impacting both daily commutes and personal travel. The average annual transportation cost for an individual in North Carolina can range from $5,477 to $15,530. For a single person, this might translate to approximately $9,968 annually. Public transportation options are available in major cities, with a one-way fare typically around $2.25 and a monthly pass costing between $45 and $64. Generally, transportation expenses in North Carolina are about 5% to 8% less than the national average.

An individual in North Carolina can expect to spend about $302.50 per month on groceries. Healthcare is another significant expense, with the average per-capita cost in North Carolina being around $7,179 per year. Healthcare costs in the state are generally about 4% higher than the national average.

Taxation in North Carolina

North Carolina operates with a flat state income tax rate, meaning all taxable income is subject to the same percentage. For the 2025 tax year, the individual income tax rate is 4.25%. This rate is part of a planned reduction, with the rate scheduled to decrease further to 3.99% after 2025.

Sales tax also impacts daily expenditures. The statewide sales tax rate in North Carolina is 4.75%. However, local sales taxes can be added on top of this state rate, ranging from 0% to 2.75% depending on the county or municipality, bringing the total combined sales tax rate to between 4.75% and 7.5%. The average combined state and local sales tax rate is approximately 7.00%. Notably, qualifying food items are subject to a reduced sales tax rate of 2%.

Property taxes, while not levied at the state level, are an important consideration for homeowners as they are assessed and collected by individual counties. North Carolina employs an “ad valorem” system, meaning property taxes are based on the assessed market value of the property. Properties undergo revaluation at least once every eight years to align with current market values. Since rates are set at the local level, they can vary significantly from one county to another.

The average effective property tax rate in North Carolina is about 0.73% of a home’s value, which is below the national average. The median property tax bill for homeowners in the state is approximately $1,724 annually. Additionally, North Carolina offers a homestead exemption that can reduce the taxable value of a home for eligible elderly or disabled residents.

Regional Variations within North Carolina

While the overall cost of living in North Carolina cities averages about 2% lower than the typical U.S. city, this figure masks considerable internal variations. Costs can range from 12% lower to 9% higher than the average U.S. city depending on the exact location.

Major metropolitan areas, such as Raleigh, Charlotte, and Asheville, represent the higher-cost regions within North Carolina. In these bustling urban centers, housing and general living expenses are notably elevated compared to other parts of the state. For instance, in Charlotte, average rents can be around $1,485 for a one-bedroom and $1,785 for a two-bedroom apartment, with the median home price reaching approximately $405,900. Similarly, Raleigh sees average rents around $1,199 for a one-bedroom and $1,439 for a two-bedroom, and the median home price is about $440,000.

Mid-sized cities, including Greensboro, Winston-Salem, and Fayetteville, offer a more moderate cost of living. These areas provide a balance between urban amenities and more affordable expenses. In Greensboro, for example, the median rent for a one-bedroom apartment is around $1,001, and a two-bedroom is about $1,115. Winston-Salem and Fayetteville also present more accessible housing costs, with average rents around $1,116 and $1,082, respectively. These cities allow a $70,000 salary to stretch further than in the larger metropolitan hubs.

Conversely, rural areas and smaller towns across North Carolina generally boast the lowest costs of living. In these locales, a $70,000 salary can provide a more expansive lifestyle due to significantly reduced expenses, particularly for housing. Lexington, a smaller town, offers average rents as low as $850 for a one-bedroom and $1,000 for a two-bedroom, with median home prices around $220,000. Another example is Greenville, which has some of the lowest average rents in the state, at about $952 per month.

Understanding Your Net Income

Estimating actual take-home pay from a $70,000 gross salary involves accounting for several deductions that reduce the amount received. Gross salary represents the total earnings before any deductions, while net income, or take-home pay, is the amount remaining after all withholdings. This distinction is important for managing personal finances.

Various common pre-tax deductions can reduce an individual’s taxable income. These include contributions to retirement accounts like a 401(k), where the maximum employee pre-tax contribution limit for 2025 is $23,500. Employees aged 50 or older can often contribute an additional “catch-up” amount of $7,500, with those aged 60-63 having an increased catch-up contribution of $11,250. Other pre-tax deductions might include health insurance premiums and contributions to Flexible Spending Accounts (FSAs), which also lower the amount of income subject to taxation.

Beyond pre-tax deductions, federal and state payroll taxes are withheld from gross pay. Federal Insurance Contributions Act (FICA) taxes comprise Social Security and Medicare taxes. For 2025, the Social Security tax rate for employees is 6.2% on earnings up to a wage base limit of $176,100. The Medicare tax rate is 1.45% of all covered wages, with no wage base limit.

Together, these FICA taxes amount to 7.65% of an employee’s gross wages. An additional Medicare tax of 0.9% applies to wages exceeding $200,000, though this would not typically affect a $70,000 salary on its own.

Federal income tax withholding is also a significant deduction, determined by the information provided on an employee’s Form W-4. This withholding is an estimate of federal income tax liability. Similarly, North Carolina state income tax is withheld from paychecks. For 2025, North Carolina’s flat income tax rate is 4.25%.

After all these deductions—pre-tax contributions, federal income tax, FICA taxes, and state income tax—the remaining amount is the individual’s net income. While the exact take-home pay will vary based on specific deductions and individual tax situations, a $70,000 gross salary will be substantially reduced by these mandatory withholdings and elective pre-tax contributions.