Is Living in North Carolina Expensive?

The cost of living encompasses the financial resources needed to maintain a particular standard of living in a given location. This includes expenditures on essential goods and services, such as shelter, food, transportation, and healthcare. Various economic factors influence these costs, including inflation, which increases the price of goods and services, and supply chain disruptions. The overall economic health of a region, including employment rates, also plays a role in shaping local expenses. Costs differ significantly by geographic location, with urban centers typically presenting higher expenses compared to suburban or rural communities. Personal choices regarding lifestyle further influence an individual’s financial outlay.

Housing Costs

Housing consistently represents the most substantial portion of living expenses for individuals and families. In North Carolina, rental costs exhibit considerable variation depending on the specific region. As of late 2024, median rents for a one-bedroom apartment ranged from around $1,001 in Greensboro to $1,282 in Charlotte. Two-bedroom apartments similarly varied, with median rents from $1,115 in Greensboro to $1,398 in Charlotte. More broadly, average apartment rents across the state were approximately $1,561 as of June 2025.

Homeownership also reflects this regional disparity. The median home price in North Carolina ranged from approximately $337,457 in June 2025 to $367,500 in February 2025. This statewide median remains lower than the national average, making homeownership potentially more accessible. For example, a home valued at $325,000 could result in a monthly mortgage payment of around $1,949, excluding property taxes and insurance. Property taxes add to the cost of homeownership and are levied at the local level. Homeowners insurance premiums average approximately $2,941 annually for a policy in the state.

Everyday Expenses

Routine daily expenditures form another significant component of the cost of living. Utility costs in North Carolina are generally lower than the national average but still represent a notable monthly expense. The average monthly electricity bill ranges from approximately $141 to $209. Natural gas bills average between $119 and $213 per month. Water and sewer costs contribute to utility bills, with monthly averages for water ranging from $20 to $50, and combined water and sewer bills often around $50. Trash removal services typically cost about $24 per month. When considering all basic utilities, including electricity, water, gas, and internet, the combined monthly expense can range from approximately $260 to $400. Internet services alone average between $60 and $76 monthly.

Food expenses are a consistent part of the budget. The average annual grocery cost per person is estimated at $3,630, translating to about $303 per month. For a family of four, annual grocery bills can reach approximately $16,720. Transportation costs also factor into daily life. The average price of gasoline in North Carolina was about $2.91 per gallon as of July 2025. Car insurance premiums vary widely, with full coverage policies ranging from approximately $865 to $1,955 annually. Vehicle maintenance costs typically fall between $1,200 and $1,800 per year. Public transportation options are available in major urban areas, with a monthly pass in Raleigh costing around $78.

Healthcare Costs

Healthcare expenses are a considerable and often unavoidable part of a household budget. Health insurance premiums in North Carolina can be slightly higher than the national average. For a benchmark plan purchased through the marketplace, the average monthly premium is approximately $495 to $512. These costs can vary based on factors such as age, location, and the chosen plan tier.

For individuals covered by employer-sponsored plans, the average monthly premium for single coverage may be lower, around $111. The total annual cost for employer-sponsored single coverage can average around $8,653. Family health insurance plans, without financial assistance, can average approximately $1,483 per month. Beyond premiums, individuals also incur out-of-pocket expenses, including co-payments for doctor visits, deductibles that must be met before insurance coverage fully activates, and costs for prescription medications. The specific amounts for these out-of-pocket expenses depend on the individual’s insurance plan design and their healthcare utilization.

State and Local Taxes

The tax structure in North Carolina significantly influences the overall cost of living. The state levies a flat income tax rate, meaning all taxable income is taxed at the same percentage regardless of the income level. For the 2024 tax year, this rate was 4.5%, and it is scheduled to decrease further to 4.25% for 2025 and 3.99% for 2026. Capital gains from investments are also taxed at this flat income tax rate.

North Carolina imposes a statewide sales tax of 4.75% on most goods and services. In addition to the state rate, counties have the authority to levy their own local sales taxes, which can average an additional 2.25%. This results in a combined sales tax rate that can reach up to 7%. Property taxes are a local assessment determined and collected by counties and municipalities. The average effective property tax rate across the state is around 0.73% of the property’s assessed value. Residents also pay a gasoline tax, which was approximately 40.65 cents per gallon in 2025.