Eight Things You Must Know About Retiring to the Carolinas

1. The Carolinas are a popular ‘halfback’ destination

For years, the Carolinas and other mid-Southern states have seen an uptick in retirees. Some are northerners who made the Carolinas a direct target for retirement. Others are the “halfbacks" — northerners who initially thought they'd retire in Florida, but when they landed there, decided to beat a path halfway back. Maybe because you're looking to relish the four seasons in the Blue Ridge Mountains, or you want to avoid Florida's sweltering weather.

Either way, it's best to listen to the oft-repeated advice from recent retirees: Visit your targeted retirement destinations a few times, and go so far as to test-drive the destination by renting for an extended period before making the plunge. For example, Frank and Carol Hammon retired in Ocean Isle Beach, N.C., 40 miles south of Wilmington, N.C., and about 30 minutes from the South Carolina border and the Myrtle Beach resort area. “We’ve been vacationing here at Ocean Isle Beach since 1985,” Frank Hammon says.

The Hammons purchased a one-bedroom condo a block from where they rented more than 10 years ago when they were still living and working in Virginia.

2. South Carolina is tax-friendlier to retirees than North Carolina

Kiplinger.com maintains a thorough Retiree Tax Map — a state-by-state guide to taxes on retirement income, state sales taxes, property tax breaks for seniors, estate taxes and more. Read up on North Carolina's state tax guide, as well as South Carolina's state tax guide, to learn how much tax you'll be paying.

Retiring in North Carolina

In North Carolina, your Social Security benefits are not taxable; however, most other retirement income, such as withdrawals from IRAs, 401(k)s and private pensions, is taxed as ordinary income. The state also has a flat income tax rate of 3.99% for the tax year 2026, which dropped from 4.25% in 2025.

Additionally, North Carolina has the "Bailey exemption." Income from federal government retirement plans, or designated North Carolina state and local government retirement plans, is exempt if the retiree had five or more years of creditable service as of August 12, 1989.

North Carolina also offers a homestead property tax exemption for eligible residents. The state excludes from property taxes a portion of the appraised value of a permanent residence. However, to qualify, the owners must occupy the home and be aged 65 or older or totally and permanently disabled.

Retiring in South Carolina

Like North Carolina, South Carolina does not tax Social Security benefits but does tax other forms of retirement income, and the state's income tax rate ranges from 0% to 6.2%. However, South Carolina offers a retirement income exclusion of up to $15,000. If you have taxable income that exceeds that amount, you’ll pay income taxes in South Carolina.

There’s also no inheritance or estate tax, and property taxes are on the low side. If you're at least 65, the state's homestead exemption shields the first $50,000 of your home's value from local property taxes.

On the downside, South Carolina does have a sales tax. Statewide, the rate is 6%. However, localities can add as much as 3%, potentially topping out at a 9% hit to your wallet, though the average combined rate for both states is around 7.49%, according to the Tax Foundation.

3. You can go back to college for free as a retiree in the Carolinas

Good news for retirees eyeing North Carolina as a landing pad for their golden years: State residents 65 and older can, on a space-available basis, audit classes tuition-free at the campuses of the University of North Carolina, as well as the state’s community colleges.

Registration fees are waived, too, but there may be an application fee, depending on the college. Want to earn college credit? Residents 65 and older can take as many as six hours of for-credit courses for free at the state’s community colleges each semester.

It’s even better in South Carolina. All South Carolina residents 60 and older can attend any state-funded college tuition-free on a space-available basis. This includes courses taken for credit or audited. You’ll have to apply for enrollment to the school you are interested in attending, and you’ll be on the hook for any course fees, textbooks and other mandatory materials.

Check out our Free (or Cheap) College for Retirees in All 50 States guide to learn more about education options.

4. Hurricanes mean you might have to evacuate your Carolina home

It’s not like hurricanes are unexpected in North Carolina and South Carolina. After all, the region’s professional hockey team is named, well, the Hurricanes.

Anyone who’s visited the Carolinas on vacation knows that major weather events are baked into coastal living. You’ve seen the street signs pointing out hurricane evacuation routes. North Carolina averages one tropical cyclone making landfall every two years. Of those, 52 are hurricanes, resulting in an average of one hurricane making landfall every 3.25 years.

In Fall 2024, massive storm Helene left a trail of devastation across six states in the southeast US. In 2025, Hurricane Erin passed near the Crystal Coast and Outer Banks areas as a Category 2 hurricane, bringing tropical storm conditions, high waves, rip currents, storm surge impacts and coastal erosion.

So does that mean you must have hurricane insurance as a homeowner in the Carolina's? No. Technically, hurricane insurance is not a separate policy. Instead, homeowners combine homeowners insurance, making certain it includes windstorm coverage. However, flood damage is usually not covered and requires a separate flood insurance policy.

According to Value Penguin, federal flood insurance costs an average of $751 a year in South Carolina and an average of $916 in North Carolina. The national average is $818 per year.

Oh, and there’s a hurricane deductible, typically around 5%, built into homeowners’ insurance policies in 19 states, including North Carolina and South Carolina. If a house is insured for $300,000 and has a 5% deductible, the first $15,000 of a claim must be paid out of the policyholder’s pocket, according to the Insurance Information Institute. The details of hurricane deductibles are typically spelled out on the declarations page of homeowners' policies.

5. Some incoming Carolina retirees are baby-chasers

Baby-chasers? Yup. It’s a thing. According to PR Newswire, baby chasers are boomers who follow their kids (and grandkids) who moved to new cities for lucrative jobs. In terms of the Carolinas, most of the migration has been to the Charlotte area.

According to the latest U.S. Census Bureau 2025 estimates, released January 2026, North Carolina gained more than 84,000 new residents (ranking #1 nationally), while South Carolina added just over 66,622 (ranking #3). Many of these newcomers were retirees.

The states ranked high for inbound domestic migration: North Carolina often #1 in number of new residents, with South Carolina leading in percentage population growth at 1.5% — the fastest nationally, followed closely by North Carolina at 1.3%, third-fastest. This ongoing influx continues to fuel economic growth in both states but is also contributing to rising housing costs in popular areas.

And many of these baby-chasers are wealthy, Meyers Research found. That's especially the case with those who sell their long-time homes in the Northeast, tap the more affordable real estate market in North Carolina, and have money to pocket. And, the Charlotte area is rising to the rush. Suburban Lancaster County is a hotbed for boomers settling into ever-growing numbers of active adult communities, including Tree Tops by Lennar, according to Meyers. The top-selling adult community in the county, Meyers says, offers 19 different floor plans for ranch homes. Prices start in the high $400,000s to the mid-$500,000s.

6. Popular destinations in the Carolinas retirees are targeting

The shortlist is a long one. The Carolinas are actively recruiting retirees, and local governments are friendly to developers of the numerous over-55 communities that surround beach and mountain communities.

The latest U.S. Census Bureau population estimates, which are from April 2010 to July 2019 show:

• The region straddling the North Carolina-South Carolina border that includes Myrtle Beach, Conway, and North Myrtle Beach grew a whopping 32.6% last decade with the arrival of 122,581 new residents.
• Raleigh, N.C.’s population grew by 16% with the arrival of 180,756 new residents.
• South Carolina’s Hilton Head Island-Bluffton-Beaufort region’s population grew 15.6%, with 29,093 new residents.
• Charleston-North Charleston, S.C., gained 101,288 new citizens in that time frame, a 15.2% growth rate.

Popular retirement towns in North Carolina include Brevard and Asheville in the mountains, New Bern and Oak Island, Southport, Carolina Beach and Chapel Hill.

Retirement communities also dot some of South Carolina's top retirement destinations, including Georgetown, Spartanburg, West Columbia, Greenville and Hilton Head Island.

7. There’s lots of sand — both beaches and golf courses — in the Carolinas

You'll find lots of sand — both beaches and golf courses — across the Carolinas.

For example, there are several dozen active adult retirement communities in the Myrtle Beach, SC area (a popular tourist destination, and also an increasingly popular retirement destination), including Myrtle Beach Golf & Yacht Club, with more than 1,000 homes; The Bays at Prince Creek, with 799 homes; and Del Webb at Grande Dunes Myrtle Beach, a sold-out 700+ home community wrapped around the Intercoastal Waterway.

And retirees will find plenty of beach to roam along the Grand Strand, a 60-mile arc of beach that stretches across the Carolina coast around Myrtle Beach. Beaches around Hilton Head are also popular with local retirees, especially in the fall, when tourism drops off.

The North Carolina coast includes 300 miles of barrier-island beaches, and VisitNC.com says these are the 25-plus best. And we’d be remiss if we didn’t mention the Outer Banks.

Golfers note: North Carolina runs hot with more than 576 courses. There are more than 400 courses in South Carolina, according to The Golf Mine.

8. Head for the hills in North Carolina

If you're looking for a getaway at a higher elevation, look no further than the mountains of North Carolina. Want to get away from the hustle and bustle of the big city? You'll find plenty of outdoor adventure opportunities, majestic scenery, and wide-open spaces, parks, and attractions to visit for solo trips, family vacations, or romantic getaways.

Of course, if you'd rather have a more laid-back vacation, there are also excellent dining options, historical and cultural attractions and luxury accommodations — with a view.

And if you're a craft beer enthusiast, you'll like that North Carolina is home to more than 400 breweries and brewpubs — the largest number in the south. If you're up for an adventure-filled getaway, need a relaxing vacation, or prefer a little of each, check out the North Carolina mountains. Some small towns worth discovering, which are charming and extremely affordable, include Hendersonville, Weaverville, Black Mountain and Brevard.

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