Cost of Living in North Carolina

By Jacqueline DeMarco

Families looking to make a move to a new state will likely appreciate that North Carolina has not one but two of the best cities for families.

That’s right: You don’t need to give up city life to raise a family. U.S. News found that Raleigh, Durham, and Hickory, North Carolina, are some of the best places for families to live in the entire country. It happens to be a pretty affordable state, too. Keep reading to learn more about the North Carolina cost of living.

What’s the Average Cost of Living in North Carolina?

Average Cost of Living in North Carolina: $53,334 per year

North Carolina residents will find that they aren’t spending drastically more or less than they would in other states. According to Missouri Economic Research and Information Center (MERIC) data gathered in the first quarter of 2026, North Carolina has the 26th-lowest cost of living in the United States. Residents of South Carolina can expect to spend even less, as the state came in at 17th when MERIC computed the least expensive states to live in. It can be hard to visualize what these rankings mean, so take a closer look at data from the Bureau of Economic Analysis. The total personal consumption cost in North Carolina is $53,334 per year. Here’s how that breaks down:

All told, North Carolinians may need about $4,445 per person, per month.

Housing Costs in North Carolina

Average Housing Costs in North Carolina: $1,268-$2,544 per month

There are plenty of housing units available in North Carolina (5.1 million, 2025 census data shows), which may explain why housing is fairly affordable in the Tar Heel State. Zillow gave a typical North Carolina home value of $339,236 in May 2026.

Here’s what you can expect housing in North Carolina to cost on a monthly basis, according to census data:

•  Median monthly mortgage cost: $1,631

•  Median studio rent: $1,268

•  Median one-bedroom rent: $1,274

•  Median two-bedroom rent: $1,277

•  Median three-bedroom rent: $1,422

•  Median four-bedroom rent: $2,002

•  Median five-bedroom (or more) rent: $2,544

•  Median gross rent: $1,338

Because the location of your home greatly influences its price, take a look at the typical home values in 20 major North Carolina cities, according to Zillow, as of May 2026.

Utility Costs in North Carolina

Average Utility Costs in North Carolina: $438 per month

No matter where you live, you’ll need to cover the costs of basic utilities:

Groceries & Beverage Spending

Average Grocery & Beverage Costs in North Carolina: $356 per person, per month

While your dietary preferences can play a big role in how much you spend on food per month, so can where you live. North Carolina’s average annual food cost per person is estimated to be $4,274, according to the Bureau of Economic Analysis. That’s about $356 per person, per month. The area of North Carolina you live in can also play a role in your grocery costs. The Council for Community and Economic Research (C2ER) outlined the grocery costs in major North Carolina cities as of 2025. Here are those annual average rankings:

Transportation

Average Transportation Costs in North Carolina: $8,844-$16,608 per year

Whether you’re commuting to bustling downtown Raleigh or spending a weekend relaxing in the Outer Banks, getting around North Carolina costs money.

How much you expect to spend can vary based on what your household looks like. Here are a few examples of average transportation costs for different family structures from MIT’s Living Wage Calculator, based on data as of February 2026.

Health Care

Average Health Care Costs in North Carolina: $8,744 per person, per year

The Bureau of Economic Analysis Personal Consumption Expenditures by State report found that the average per-capita cost of health care in North Carolina is $8,744 per year.

Location, the type of coverage you have, and how often you need care will influence your bottom-line expense.

Child Care

Average Child Care Costs in North Carolina: $732-$1,170 per child, per month

The cost of child care is a large but necessary expense for most parents, though there is some wiggle room depending on what kind of care you’re seeking.

If you’re struggling to afford child care costs, it’s worth looking into the Child Care Subsidy program for eligible families in North Carolina.

According to data from CostofChildCare.org, these are the average child care costs in North Carolina.

Taxes

Tax Rate in North Carolina: 3.99%

In North Carolina, estimating what you’ll owe in state income tax is pretty simple, since this state has a single rate tax of 3.99% instead of a graduated rate. As seen on the Tax Foundation’s State Individual Income Tax Rates and Brackets for 2026, North Carolina’s rate of 3.99% is close to nearby states’ rates. In South Carolina, the top marginal tax rate is 6.00%, while Virginia to the north has a top rate of 5.75% and Kentucky tops out at 3.50%. North Carolina’s neighbor on its western border, Tennessee, however, doesn’t charge residents any income tax.

Miscellaneous Costs

Once you pay all of your bills, it’s understandable that you might want to treat yourself to a little fun. If each North Carolinian spends about $29,374 a year on personal expenditures, some of these cheap thrills could factor in (costs accurate as of June 2026):

•  A day at the North Carolina Zoo in Asheboro: $16 per child (free for those under 3) and $20 per adult

•  Entrance to the Wright Brothers National Memorial in Kill Devil Hills: $10 per person

•  Breakfast at the beloved Biscuit Head restaurant in Asheville: $16.50 for the Full Breakfast

•  A kite at Kitty Hawk Kites on the Outer Banks: $4.99 to $2,499.99

•  Tickets to see a production of The Lost Colony play in Manteo: Range from $0 (kids 5 and under) to $44 (adults), depending on seat location and other discounts.

•  A chopped BBQ plate at Lexington Barbecue: $13.40 (cash) or $13.85 (card)

Museum lovers will appreciate that the North Carolina Museum of Natural Sciences in Raleigh has free general admission.

Recommended: What Are the Average Monthly Expenses for One Person?

How Much Money Do You Need to Live Comfortably in North Carolina?

While we all have varying definitions of what it means to live comfortably, U.S. News & World Report’s Affordability Rankings can give you a good idea of how achievable that concept is in each state. North Carolina came in 24th in terms of affordability. According to MERIC, North Carolina takes the 26th spot, sandwiched between Pennsylvania on the low end and Wisconsin on the high end, when it comes to cost of living. So it looks like the state is pretty much in the middle, which could mean comfortable to many.

What Major City Has the Lowest Cost of Living in North Carolina?

All states have their more expensive and more affordable spots to live in. If you have your eye on North Carolina, here are three of the major cities and metro areas with the lowest costs of living, according to the Council for Community and Economic Research’s Cost-of-Living Index for 2025.

Winston-Salem

With a composite index cost-of-living score of 89.4, Winston-Salem comes in as the cheapest major city to live in, as per the C2ER data. It boasts many historical homes, museums, public gardens, and event spaces, such as Tanglewood Park. It also hosts many annual events, including ATP Tour tournament the Winston-Salem Open at Wake Forest University.

Salisbury

Salisbury (cost-of-living index of 91.8) is a part of historic Rowan County, which is home to 11 National Register districts, five local historic districts, and many museums. If you want to get a feel for the town’s history, you can’t miss the Salisbury Heritage Walking Tour and the Salisbury History and Art Tour. Fun fact: It’s the birthplace of the local favorite cherry-flavored soft drink, Cheerwine, created in 1917.

Greensboro

The third-most-affordable major city in North Carolina to make the C2ER list is Greensboro. The cost-of-living index here is 92.6, but its housing score comes in much lower at 78.8. A vibrant, fast-growing area (pop. 307,000), Greensboro is known for its role in the Civil Rights Movement, and local attractions like the Greensboro Science Center and the Bog Garden, which features an elevated boardwalk over scenic wetlands. If you want a well-rounded lifestyle on a monthly budget, Greensboro may be the right fit for you.

FAQ

What are the pros and cons of moving to North Carolina?

North Carolina is an affordable state that ranks as one of the best in the country for families, offering a mix of city life and natural beauty with millions of acres of forest. The state also features modern amenities alongside innovations in education, medicine, and research.

Are houses in North Carolina expensive?

Housing is considered fairly affordable in North Carolina, ranked as the 24th most affordable state. As of May 2026, the typical home value is $339,236, with a median monthly mortgage cost of $1,631.

What is the cheapest place to live in North Carolina?

Major cities with lower costs of living include Winston-Salem, which has a composite index score of 89.4, and Salisbury, with a cost-of-living index of 91.8. These locations are highlighted as some of the more affordable major areas to reside in within the state.