How NORTH CAROLINA Taxes Retirees (Blog)

Alaska has no income tax. But don’t think you’ll escape the long arm of the Federal tax man.

If you have $40k in Social Security and $20k in IRA distributions you’ll pay nothing to the Feds.

But switch that around to $20k Social Security and $40k IRA and you’re taxes jump to $2871.

Plan wisely before you begin to take Social Security!

North Carolina has a flat tax of 5.49% and basically everything is subject to taxation, except for Social Security.

If you are retiring to North Carolina you should be doing some proactive tax planning indeed. Roth IRAs and Social Security maximization strategies should be your first order to business.

State and local sales tax puts North Carolina smack dab in the middle of the rest of the nation. Not low, but not high either. Groceries are not taxed by the state but can be by the localities.

Property taxes are pretty low. Only the 30th highest property tax in terms of percentage but because median house value is pretty low the actual dollar amount citizens pay in property tax put the state in the top 10 for lowest burden.

Watch the video here.