North Carolina vs South Carolina: Tax & Cost Comparison

2026

Side-by-side North Carolina vs South Carolina comparison: state income tax, sales tax, property tax, cost of living, and minimum wage for 2026. Carolinas competition for retirees and remote workers — comparing NC's 4.25% flat + 0.82% property tax against SC's 7% top + 0.50% property tax (Class 1 owner-occupied).

Written and reviewed by Konstantin Iakovlev · Methodology · Updated

Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.

Tax / Cost Factor North Carolina South Carolina
State income tax (top rate) 3.99% (flat) 6.00% (progressive)
State sales tax 4.75% 6.00%
Avg. effective property tax 0.73% 0.56%
Minimum wage (2026) $7.25/hr $7.25/hr
State Disability Insurance (SDI) No No
Paid Family Leave No No
Median home price (Q4 2025) $365,000 $320,000
Foreclosure type non-judicial judicial
BEA Regional Price Parity (2024) 95.4 94.3
Median household income (2024) $67,840 $65,170
Median 2-bedroom rent (Q4 2025) $1,530/mo $1,560/mo

Worked example: $75,000 single filer, 2026

For a single filer earning $75,000 in 2026, the rough state-tax burden comparison:

  • North Carolina: estimated state income tax ≈ $2,095, plus federal income tax (≈ $7,300 at 22% marginal), FICA $5,738, sales tax 4.75% on consumption.
  • South Carolina: estimated state income tax ≈ $3,150, plus federal $7,300, FICA $5,738, sales tax 6.00% on consumption.

Property tax depends entirely on home value. On a $400,000 home: North Carolina ≈ $$2,920/year; South Carolina ≈ $$2,240/year.

Combined annual state burden (income + property on $400K + 6% of $50K consumption sales tax) — North Carolina: ~$7,390; South Carolina: ~$8,390.

Why this comparison? Carolinas competition for retirees and remote workers — comparing NC's 4.25% flat + 0.82% property tax against SC's 7% top + 0.50% property tax (Class 1 owner-occupied).

Frequently asked questions

Which is cheaper to live in: North Carolina or South Carolina?

By BEA Regional Price Parity (2024), North Carolina has a cost-of-living index of 95.4 and South Carolina is 94.3 (US average = 100). Median household income: North Carolina $67,840, South Carolina $65,170. Median 2-bedroom rent: North Carolina $1,530/mo, South Carolina $1,560/mo. South Carolina is the lower-cost state by this measure.

Does North Carolina or South Carolina have lower income tax in 2026?

North Carolina has a top income-tax rate of 3.99%; South Carolina has 6.00%. North Carolina is lower at the top bracket.

What about property taxes in North Carolina vs South Carolina?

North Carolina's average effective property tax rate is 0.73% (e.g., $2,920/year on a $400,000 home). South Carolina's rate is 0.56% ($2,240/year on $400K). South Carolina has the lower property tax burden.

Where is the minimum wage higher: North Carolina or South Carolina?

North Carolina's 2026 minimum wage is $7.25/hour; South Carolina's is $7.25/hour. Both have the same minimum wage.