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: $51,081 per year

North Carolina residents will find that they aren’t spending drastically more or less than they would in other states. According to MERIC data gathered in 2024, North Carolina has the 28th-lowest cost of living in the United States. Residents of South Carolina can expect to spend even less, as the state came in two spots ahead of North Carolina when MERIC computed the least expensive states to live in. It can be hard to visualize what these rankings mean, so let’s take a closer look at data from the Bureau of Economic Analysis. The total personal consumption cost in North Carolina is $51,081 per year. Here’s how that breaks down.

All told, North Carolinians may need about $4,256 per person, per month.

Housing Costs in North Carolina

Average Housing Costs in North Carolina: $1,109 to $2,219 per month

There are plenty of housing units available in North Carolina (4.9 million, 2024 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 $328,101 in March 2025.

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

•  Median monthly mortgage cost: $1,561

•  Median studio rent: $1,109

•  Median one-bedroom rent: $1,224

•  Median two-bedroom rent: $1,199

•  Median three-bedroom rent: $1,279

•  Median four-bedroom rent: $1,670

•  Median five-bedroom (or more) rent: $2,219

•  Median gross rent: $1,245

Because the location of your home greatly influences its price, let’s look at the typical home values in 20 major North Carolina cities, according to Zillow, as of December 2024.

Utility Costs in North Carolina

Average Utility Costs in North Carolina: $328 per month

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

Sources: U.S. Energy Information Administration, Electric Sales, Revenue, and Average Price; Statista.com, “Average monthly residential utility costs in the United States, by state”; DoxoInsights, U.S. Cable & Internet Market Size and Household Spending Report; and Rentcafe.com, What Is the Average Water Bill?

Groceries & Food

Average Grocery & Food 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 $4,271, 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, outlined the grocery costs in major North Carolina cities as of 2024. Here are those annual average rankings.

Transportation

Average Transportation Costs in North Carolina: $9,887 to $18,397 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 money 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 2025.

Health Care

Average Health Care Costs in North Carolina: $8,166 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 $8,166 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 to $1,170 or more 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: 4.25%

In North Carolina, estimating what you’ll owe in state income tax is pretty simple, since this state has a single rate tax of 4.25% instead of a graduated rate. As seen on the Tax Foundation’s State Individual Income Tax Rates and Brackets for 2025, North Carolina’s rate of 4.25% is close to nearby states’ rates. In South Carolina, the top marginal tax rate is 6.2%, while Virginia to the north has a top rate of 5.75% and Kentucky tops out at 4%. North Carolina’s neighbor on its western border, Tennessee, however, does not charge residents any income tax.

Miscellaneous Costs

Once you pay all of your bills, it’s understandable if you want to treat yourself to a little fun. If each North Carolinian spends about $28,384 a year on personal expenditures, some of these cheap thrills could factor in (costs accurate as of March 2025):

•  A day at the North Carolina Zoo in Asheboro: $11 per child (under 2 years old are free) and $15 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: $12 for the “Full Breakfast”

•  A kite at Kitty Hawk Kites on the Outer Banks: $4.99 to $2,049.99

•  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: $12.90

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 basic affordability. According to MERIC, North Carolina takes the 28th spot, sandwiched between Mississippi on the low end and Hawaii 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 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, these are three of the major cities and metro areas with the lowest cost of living, according to the Council for Community and Economic Research’s Cost of Living Index for 2024.