Taxes in North Carolina for retirees
A single retiree with $60,000 of income and a $350,000 home pays about $6,120 a year in North Carolina income, property and sales tax. That is $299 a year less than the middle state, and ranks 20 of 47 states from lowest to highest.
Where the $6,120 comes from
| Tax | Per year | How we got it |
|---|---|---|
| State income tax | $1,885 | Standard deduction, no credits. Source |
| Property tax | $2,135 | Statewide typical rate of 0.61% of home value. Your county and exemptions will differ. Source |
| Sales tax | $2,100 | 4.75% state plus 2.25% average local on the spending you list as taxable. Source |
| Total counted | $6,120 | Every yearly tax above is included. |
Tax on what you leave behind
This state charges no estate or inheritance tax. Federal estate tax is separate.
Ways to lower your North Carolina property tax
Property Tax Homestead Exclusion for Elderly or Disabled
Takes the greater of $25,000 or 50% of your home's appraised value off the taxable value
Apply by: June 1. Source
Circuit Breaker Property Tax Deferment
Caps your property tax at 4% or 5% of income; the rest is deferred as a lien
Apply by: June 1. Source
What this assumes
- A single filer with $60,000 a year, all of it taxable income such as a pension or retirement account withdrawals.
- Social Security is not counted, because states treat it differently. Your state may also exempt some retirement income, which would lower the income tax.
- A $350,000 home taxed at the state's typical rate, and $30,000 a year of spending that carries sales tax.
- City and county income taxes are not included. Your county may charge more or less property tax than the state typical.
General information, not tax advice. Rates change each year, so confirm with your state tax agency. See all 47 states ranked.