North Carolina Vs. South Carolina: Cost of Living

Cost of Living in NC Vs. SC 

Is it cheaper to live in North Carolina or South Carolina? Here is what you need to know about the cost of living in each state before deciding to move! 

North Carolina and South Carolina might be neighbors, but these two popular southeastern states have many things that set them apart, including the cost of living. North Carolina is known for its beautiful scenic spots, larger cities, and wide variety of industries, while South Carolina is known for its historical significance and southern hospitality. 

If you are looking for a beautiful place to call home with fantastic weather, top amenities, and affordable living, both states have cities that fit the bill. However, when comparing the two, learning about the cost of living might be the deciding factor when choosing a place to live. 

Check out the cost of living in North Carolina and South Carolina 

1. Cost of Living in North Carolina 

North Carolina has the 28th lowest cost of living in the United States, making it an affordable option for families, young professionals, and retirees. With a cost of living 5% lower than the national average, North Carolina has become a popular place to call home in the Southeast. 

The average personal total consumption cost in North Carolina is $43,959 per year, meaning a North Carolina resident must make about $3,663 monthly to live comfortably. 

While the cost of living may be considered affordable, overpriced metropolitan areas, including Raleigh, Durham, Charlotte, Asheville, Winston-Salem, and Greensboro, make the state slightly more expensive than South Carolina and other states of similar size. 

Known for its reasonable prices, North Carolina is worth moving to if you want lower costs, beautiful cities, and top-rated amenities. Here is a side-by-side comparison of typical cost of living expenses in some of the most popular North Carolina cities: 

Raleigh, NC 

Cost of Living Expense	Average Cost
Median Rent	$1,442/month
Energy Bill	$190.64/month
Phone Bill	$187.41/month
Doctor's Visit	$153.34
Dentist Visit	$128.19
Veterinary Visit	$66.23

*Data Sourced from Payscale. 

Durham, NC 

Cost of Living Expense	Average Cost
Median Rent	$1,611/month
Energy Bill	$172.52/month
Phone Bill	$170.59/month
Doctor's Visit	$145.37
Dentist Visit	$121.53
Veterinary Visit	$64.44

*Data Sourced from Payscale. 

Charlotte, NC 

Cost of Living Expense	Average Cost
Median Rent	$1,337/month
Energy Bill	$173.33/month
Phone Bill	$170.39/month
Doctor's Visit	$150.87
Dentist Visit	$126.13
Veterinary Visit	$68.10

*Data Sourced from Payscale. 

2. Housing Costs in North Carolina 

North Carolina has beautiful and affordable housing all over the state. Whether you want to live in the Research Triangle, to the west near the Blue Ridge Mountains, or to the east near the beaches, housing availability is one of the many reasons why so many people want to move here. 

While popular urban areas have higher housing prices than lesser-known cities, North Carolina has many affordable neighborhoods and growing suburban areas that offer sought-after home types with varying home styles. 

Raleigh, the state capital, has a median home price of $425,000. Home prices here are up 4.5% compared to last year. Currently considered to be in a seller's market, sellers can keep prices high since there is a strong demand for homes as the population increases and the economy grows. 

The median home price in Charlotte is $422,000, up 1.0% from last year. Much like Raleigh, Charlotte is also in a seller's market, but the supply of homes available for sale has been increasing over the past few months, which could lead to lower housing costs. When comparing housing costs, Charlotte is cheaper than Raleigh, but not by much. 

With one of the hottest real estate markets in the country, North Carolina has seen increasing housing prices as demand rises and inventory becomes limited. To meet the high demand for housing, the state is building new residential construction quickly. 

3. Average Income in North Carolina 

According to the United States Census Bureau, North Carolina's median household income is $67,481. This is lower than the national median, which is $74,755. While average income certainly depends on the type of job and experience that an individual has, the average income in North Carolina reflects the state's lower cost of living. 

Here is the median income in North Carolina depending on the types of families: 

Household Type	Average Income
Families	$83,448
Married-Couple Families	$99,793
Nonfamily Households	$41,534

North Carolina's employment rate is 59.2%, lower than the national rate of 60.3%. Educational services and the healthcare and social assistance industry account for 22.2% of the state's employed population, followed by professional, scientific, and management services and administrative and waste management services. 

4. Taxes in North Carolina 

The tax system in North Carolina ranks 9th on the 2024 State Income Tax Climate Index, making it one of the best states for taxes. North Carolina has a flat individual income tax rate of 4.50%, meaning everyone is taxed equally, no matter how much money is earned throughout the year. The corporate income tax rate is 2.5%. 

The state also has a 4.75% state sales tax rate and a combined state and local tax rate of 7.00%. While there is no estate tax or inheritance tax in North Carolina, the property tax rate is 0.63% on owner-occupied housing value. 

5. Cost of Living in South Carolina 

According to Meric, South Carolina has the 27th lowest cost of living in the United States, making it slightly cheaper than North Carolina. With a cost of living 6% lower than the national average, South Carolina is an excellent choice for people looking for affordability, warm weather, and historic charm. 

Even though living in South Carolina is generally more affordable than in other states, the cost varies depending on the city or region. Much like North Carolina, more prominent cities in South Carolina, including Charleston, Columbia, and Hilton Head Island, tend to have a higher cost of living. 

Due to lower tax rates and affordable housing options, South Carolina residents tend to spend less than North Carolina residents. While the cost of living in South Carolina is typically inexpensive, the state is known for having one of the country's highest average monthly utility bills. 

Electricity costs have risen by 12.9% across the county. Due to the state's hot climate, South Carolinians use a lot of air conditioning, leading to higher electricity bills. The average South Carolina resident spends $418.23 monthly on utilities and $138.16 on electricity alone.  

Here is a side-by-side comparison of typical cost of living expenses in some of the most popular South Carolina cities: 

Columbia, SC 

Cost of Living Expense	Average Cost
Median Rent	$1,103/month
Energy Bill	$257.14/month
Phone Bill	$252.79/month
Doctor's Visit	$117.34
Dentist Visit	$98.10
Veterinary Visit	$65.44

*Data Sourced from Payscale. 

Charleston, SC 

Cost of Living Expense	Average Cost
Median Rent	$1,470/month
Energy Bill	$239.83/month
Phone Bill	$235.77/month
Doctor's Visit	$121.19
Dentist Visit	$101.32
Veterinary Visit	$65.17

*Data Sourced from Payscale. 

Mount Pleasant, SC 

Cost of Living Expense	Average Cost
Median Rent	$2,067/month
Energy Bill	$239.83/month
Phone Bill	$235.77/month
Doctor's Visit	$121.19
Dentist Visit	$101.32
Veterinary Visit	$65.17

*Data Sourced from Payscale. 

6. Housing Costs in South Carolina 

Housing costs in South Carolina vary by region and city. Still, they are generally cheaper than the national average and can be more affordable than housing in North Carolina, depending on the area. Keep in mind that popular cities will have higher housing costs than surrounding areas. 

The median home price in Columbia, South Carolina, is $250,000, and it has trended up 1.1% year after year. On the other hand, Greenville, South Carolina, has a median home price of $450,000, and Charleston, South Carolina, has a median home price of $650,000. The higher the demand and the lower the inventory, the higher the housing prices will be. 

When considering housing options, consider location, the size of the home, the overall housing market in the area, and current mortgage rates. Offering single-family homes, new construction, and luxury properties, South Carolina has beautiful home types and styles all over the state and no shortage of friendly and welcoming communities. 

7. Average Income in South Carolina 

The median household income in South Carolina is $64,115, slightly lower than the median household income in North Carolina and lower than the median household income in the United States, which is $74,755. 

Here is the median income in South Carolina depending on the types of families: 

Household Type	Average Income
Families	$79,886
Married-Couple Families	$96,419
Nonfamily Households	$38,426

South Carolina's employment rate is 57.1%, lower than the national rate of 60.3% and lower than the North Carolina employment rate of 59.2%. Like North Carolina, the largest industries for employment are educational services, health care, and social assistance. 

8. Taxes in South Carolina

The tax system in South Carolina ranks 29th on the 2024 State Business Tax Climate Index, ten spots below North Carolina. Known to have a progressive income tax, the graduated state individual income tax ranges from 0.00% to 6.40%. This means that the tax rate increases the more money that someone makes. The corporate sales tax rate is 5.0%. 

South Carolina also has a 6.00% state sales tax rate and an average combined local sales tax rate of 7.50%. Like North Carolina, South Carolina has no estate or inheritance tax. Still, there is a 0.46% property tax rate on owner-occupied housing value, one of the country's lowest property tax rates. 

FAQs 

Are state taxes higher in North Carolina or South Carolina? 

On average, South Carolina pays fewer taxes than North Carolina, and state taxes are generally higher in North Carolina than in South Carolina. North Carolina has a flat individual state income tax rate of 4.50%, while South Carolina has a graduated individual state income tax ranging from 0.00% to 6.40%. 

Is NC or SC more tax-friendly towards retirees? 

Although both North Carolina and South Carolina offer appealing tax benefits for retirement, South Carolina is typically more tax-friendly for retirees since it has one of the lowest property tax rates in the United States. 

Are houses cheaper in North Carolina or South Carolina? 

While the cost of housing varies on location, South Carolina generally has lower home prices and lower property taxes than North Carolina, making it an excellent option for affordable housing. 

Are property taxes higher in North Carolina or South Carolina? 

North Carolina is known to have higher property taxes than South Carolina. The property tax rate in North Carolina is 0.82%, while the property tax rate in South Carolina is 0.57%. 

Methodology 

Data and information were sourced from the U.S. Census Bureau, Sofi, Missouri Economic Research and Information Center, Tax Foundation, Rocket Mortgage, Payscale, and Rent Cafe to compare the cost of living in North Carolina and South Carolina. 

Cost of Living in North Carolina Vs. South Carolina - Final Thoughts 

Overall, South Carolina tends to have a lower cost of living than North Carolina, depending on the city and region. This is due to lower tax rates and more affordable housing options. On the other hand, utility costs in South Carolina are known to be more expensive, and North Carolina residents tend to have a higher average income. 

Depending on where you decide to live in either state will determine whether or not you will have to pay more or less. If you want to live in a sought-after and exciting city, then prepare to pay more for the benefit of living in a popular area. While North Carolina generally has a higher cost of living, choosing to live in a lesser-known area could mean more affordable prices. 

If you decide to move to Raleigh, North Carolina, or the surrounding area, the experts at Raleigh Realty are here to help.