North Carolina, known as the "Tar Heel State", is a fast-growing Southeast state with costs slightly below national average. Here is everything you need to know about the cost of living in the Tar Heel State — from housing and groceries to taxes, utilities, childcare, and what salary you actually need.
Here is what a typical month costs in North Carolina for a single person earning the median income of $61,000/year:
Each category shows how North Carolina compares to the national average. Green means cheaper, yellow means similar, orange/red means more expensive.
Adjust your salary to see a detailed monthly budget breakdown for living in North Carolina.
Select a state to see how much salary you would need there to maintain the same lifestyle you have in North Carolina.
The most popular cities for residents and newcomers in North Carolina:
Housing is the single biggest expense in North Carolina, as it is everywhere. The median home price in North Carolina is $355,000, and the median rent for a one-bedroom apartment is $1,150/month. With a housing cost index of 87, North Carolina housing is 13% cheaper than the national average.
Housing in North Carolina is a genuine advantage. The low cost of housing frees up income for savings, investments, and discretionary spending that residents of expensive states simply cannot afford.
North Carolina has a state income tax rate of 4.5%. On the median household income of $61,000, you will pay approximately $2,745/year in state income tax ($229/month). This is below the national average — a tax advantage for North Carolina residents.
The average single person in North Carolina spends approximately $400/month on groceries. A family of four can expect to spend $1,000-$1,200/month. The food cost index of 97 means groceries in North Carolina are 3% below the national average.
Gas prices in North Carolina average $3.15/gallon. For the average commuter driving 15,000 miles/year at 25 MPG, that is roughly $1,890/year in fuel costs.
North Carolina healthcare costs are 3% below the national average (index: 97). The average annual healthcare cost per person in North Carolina is approximately $5,820 including premiums and out-of-pocket expenses. Employer-sponsored health insurance covers the majority of working adults.
Infant daycare in North Carolina averages $900/month ($10,800/year). This is a substantial but manageable expense for dual-income households. Many families in North Carolina find that one parent staying home is more cost-effective when two or more children need daycare.
North Carolina offers a solid balance of cost, opportunity, and quality of life. With costs near the national average, you get access to growing job markets in Charlotte and Raleigh, and a cost of living that leaves room for saving and investing.
See all North Carolina financial calculators:
North Carolina (NC) has a cost of living index of 95, meaning it is 5% cheaper than the US average. Housing is the biggest factor with an index of 87. The median rent is $1,150/month and the median home price is $355,000. North Carolina ranks #25 out of 50 states for affordability (1 = cheapest).
For a single person, a comfortable salary in North Carolina is approximately $79,300/year ($6,608/month). For a family of four, aim for $134,200/year. This covers housing at 30% of income, groceries ($400/mo), transportation, healthcare, and a 15% savings rate. The median household income in North Carolina is $61,000.
The median rent for a one-bedroom apartment in North Carolina is approximately $1,150/month. A two-bedroom averages $1,553/month. Rent varies significantly by city: Charlotte, Raleigh, Durham are the most popular metro areas. Housing in North Carolina is affordable compared to the national average.
North Carolina is an excellent choice for affordability. With a cost of living 5% below the national average and median rent of just $1,150/month, your money goes significantly further here. Top cities include Charlotte, Raleigh, Durham.
The most affordable areas in North Carolina are typically smaller cities and rural areas away from the major metros. Within North Carolina, costs can vary 20-40% between the most expensive city (Charlotte metro) and more affordable areas. Greensboro and Winston-Salem tend to offer lower costs while still providing good amenities and job opportunities.
The average monthly grocery bill in North Carolina for a single person is approximately $400 ($1,000 for a family of four). North Carolina food costs are 3% below the national average. Shopping at Walmart, Aldi, and local discount stores can reduce this by 15-25%.
The average monthly electric bill in North Carolina is approximately $135. Total utilities (electric, gas, water, internet) average $297/month. North Carolina utilities are 1% below the national average. Utility costs are manageable for most households.
North Carolina has a state income tax rate of 4.5%. On the median household income of $61,000, that is approximately $2,745/year in state income tax. This is below the national average — a tax advantage.