8 Things You Must Know About Retiring to the Carolinas
From picturesque beach towns to cozy mountain communities, North and South Carolina offer retirees plenty of opportunities for living the good life.
The Carolinas consistently rank among the top U.S. retirement destinations, and for good reason. From scenic mountain vistas to the Atlantic coastline, the region combines affordable living and quality healthcare with warm, welcoming communities — offering an ideal setting for an active, fulfilling retirement.
According to Wealthvieu’s 2026 rankings of the Best States to Retire, North Carolina placed 4th overall and South Carolina 6th, buoyed by high marks for affordability, cost of living and an inviting climate. Meanwhile, Better Health For All designated North Carolina as a top-five up-and-coming retirement haven for 2026, and WalletHub placed both Carolinas comfortably within its top 20 best places to retire.
To give you a better view of all the Carolinas have to offer, we interviewed retirees who have relocated to there, as well as real estate and insurance agents who welcome new retirees to the region every year.
Andrew and Lynn Lazar, for instance, sold their longtime home in Hillsborough, New Jersey, and landed in Latitude Margaritaville Hilton Head, Hardeeville, South Carolina Latitude Margaritaville is an active adult community catering to Parrotheads, the devoted fans of singer-songwriter Jimmy Buffett (new homeowners are gifted a “Margaritaville” margarita blender). There's a retirement community for everyone.
“As Parrotheads, Margaritaville was a no-brainer,” Andrew Lazar tells us. “When our granddaughter was born, we pulled the trigger and moved forward with our plans to retire and move to our permanent vacation. The houses have that beachy feel. The amenities are beautiful. The pool is a tropical paradise. My daughter said that it’s like living in a resort.”
There were adjustments. They missed their New Jersey family and friends — and good pizza. But they don’t miss the crushing property taxes New Jersey is known for.
Are the Carolinas high on your list of possible retirement locales? Here are eight things you need to know about retiring in North or South Carolina.
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 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, North Carolina, 40 miles south of Wilmington, North Carolina, 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.
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2. South Carolina is tax-friendlier to retirees than North Carolina
Kiplinger 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, down 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 a portion of the appraised value of a permanent residence from property taxes. However, to qualify, the owners must occupy the home and be age 65 or older or totally and permanently disabled.
Retiring in South Carolina
Like North Carolina, South Carolina doesn't tax Social Security benefits but does tax other forms of retirement income. For 2026, the state’s income tax rates are 1.99% on taxable income under $30,000 and 5.21% (minus a fixed adjustment) on amounts above that.
Residents age 65 and older can claim a retirement-income deduction of up to $10,000 on qualified plans, plus an age-65 deduction of up to $15,000 against any South Carolina taxable income (reduced by any retirement deduction claimed), for a combined benefit of up to $15,000 per person.
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.
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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 might 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 at the school you're 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.
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4. Hurricanes mean you might have to evacuate your Carolina home
It’s not as if hurricanes are unexpected in North Carolina and South Carolina. The region’s professional hockey team is named 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 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.
Does that mean you must have hurricane insurance as a homeowner in the Carolinas? No. Technically, hurricane insurance is not a separate policy. Instead, you can make sure your homeowners insurance includes windstorm coverage. However, flood damage is usually not covered and requires a separate flood insurance policy.
According to NerdWallet, in 2026, federal flood insurance costs an average of $750 a year in South Carolina and $880 in North Carolina. The national average is about $960 per year.
There’s also a hurricane deductible, typically around 5%, built into homeowners’ insurance policies in 19 states, including North 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.
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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 Census Bureau 2025 estimates, released in January 2026, North Carolina gained more than 84,000 new residents (ranking No. 1 nationally), while South Carolina added just over 66,622 (ranking No. 3). Many newcomers were retirees.
The states ranked high for inbound domestic migration: North Carolina often No. 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.
Many baby chasers arrive with substantial wealth, Meyers Research notes — particularly Northeasterners who sell long-held properties to buy into North Carolina’s more affordable market with cash to spare. The Charlotte metro area has quickly adapted to this influx. Just across the state line, suburban Lancaster County has become a hub for active-adult living; its top seller, Lennar’s Tree Tops, offers townhomes and single-family residences ranging from $250,000 to $600,000.
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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 55-and-older communities that surround beach and mountain communities.
- The region straddling the North Carolina-South Carolina border that includes Myrtle Beach, Conway and North Myrtle Beach grew 32.6% in the last decade with the arrival of 122,581 new residents.
- Raleigh, North Carolina’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, South Carolina, 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.
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7. There’s lots of sand — both beaches and golf courses — in the Carolinas
There are several dozen active adult retirement communities in the Myrtle Beach area (a popular tourist destination, and also an increasingly popular retirement destination), including Myrtle Beach Golf & Yacht Club, with more than 1,000 homes, and The Bays at Prince Creek, with 799 homes.
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. 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.
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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.
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.
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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