After Tax Hikes on Seniors, NC Ranks as the 6th Worst State to Retire in
In a new ranking by Kiplinger, North Carolina is listed as one of the worst states in the country to retire in. Both the tax changes for retirement income and the higher poverty rates were cited as reasons for North Carolina's poor ranking.
The mild winters and pretty scenery may not be enough to lure you into Tar Heel country. Typical household incomes in North Carolina don't track with the state's above-average living costs. The average for all households is $64,490, the second-lowest among the 10 states we examine here and 14.0% less than the U.S. average. Older residents fare even worse, with income for 65+ households falling 18.3% below average.
Poverty is a concern. Ten percent of seniors live below the line, versus 9.4% nationwide. More troubling, the poverty rate for the whole state is 17.5%, compared with 15.4% for the U.S. Property crime in North Carolina is above average.
As for taxes, besides Social Security benefits, which are exempt, most other retirement income is subject to tax. Effective in 2015, North Carolina switched to a flat income tax rate of 5.75%. There is no inheritance tax or estate tax, and older homeowners may qualify for a property-tax exemption.