Relocating to Raleigh > Cost of Living and Taxes

Cost of Living and Taxes When You Move to the Triangle

Moving here changes more than your mortgage. North Carolina handles income, sales, property and vehicle taxes differently from many states, and the numbers vary by county and town. Here is how each one works, with links to the official sources so you can run your own numbers.

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State Income Tax

North Carolina has a flat individual income tax. The rate is 3.99% for 2026, and state law schedules further step-downs starting in 2027. Social Security benefits are not taxed by North Carolina. For details on deductions and retirement income, see the NC Department of Revenue and talk with your tax advisor.

Sales Tax

The state sales tax is 4.75%, and counties add their own local rate. Combined rates in our area currently include:

Groceries are taxed at a lower local rate rather than the full rate. Some towns add a prepared-meals tax. Current rates are posted by the NC Department of Revenue.

Property Tax on Your Home

North Carolina property tax is set locally and billed once a year. Your bill depends on three things:

• The county rate, which every property in the county pays.
• The city or town rate, if the home is inside town limits. Homes outside town limits do not pay it, but may pay a fire or special district tax instead.
• The assessed value, which counties update in periodic reappraisals. The year after a reappraisal, bills can shift even if rates fall. See understanding your property tax reappraisal.

Rates are quoted per $100 of assessed value and change with each year's budget, so look up the current rate and the actual tax history for any home you are considering. Every listing we send includes the most recent tax amount, and county tax sites let you search by address:

• Wake County Tax Administration
• Durham County Tax Administration
• Orange County Tax Administration
• Other counties we serve post their rates on their county websites. Ask us for help finding them.

Property tax is usually collected through your mortgage escrow, so it shows up in your monthly payment. Ask your lender to use the actual tax figure, not an estimate.

Vehicle Property Tax

North Carolina also charges property tax on registered vehicles, based on the vehicle's value and where you live. Under the state's Tag and Tax Together program, you pay it together with your annual registration renewal. Many newcomers are surprised by this bill, so plan for it.

Other Costs to Budget For

• HOA dues. Common in newer neighborhoods. Amounts and what they cover vary widely.
• Utilities. Electricity is mostly Duke Energy, with some areas served by electric cooperatives. Water, sewer and trash depend on the town. Homes on well and septic have no water bill but need occasional maintenance.
• Homeowners insurance. North Carolina base rates rose in 2025 and 2026. See our weather and insurance guide.
• Closing costs. In North Carolina, a real estate attorney handles the closing. Your lender's Loan Estimate lists your expected costs. Budget separately for the due diligence fee and earnest money, which are negotiated in your offer. See how much cash you need to buy.

Comparing to Where You Live Now

The fairest comparison is home by home. Pull up a home here and a similar home where you live now, and compare the price, the actual property tax bill, insurance, HOA dues and your expected commute. We are happy to build that side-by-side for you.

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This page is general information, not tax, legal or financial advice. Rates change, so confirm current figures with the official source, your tax advisor or your lender.