North Carolina vs. Tennessee: Which State is Right for You?
Both North Carolina and Tennessee are popular destinations, but for very different reasons. Some are drawn to the Tar Heel State for its beaches and growing tech industry, while others head to Tennessee for its music scene and lower cost of living.
Which state is the better choice? We’re pitting North Carolina vs. Tennessee in a head-to-head comparison, looking at everything from cost of living and job markets to outdoor recreation and culture.
And let’s not forget their history on the baseball field. But even with that rivalry set aside, which state truly comes out on top?
Cost of Living and Real Estate
Money matters, so let’s take a look at how far your dollar goes in each state.
Cost of Living
Tennessee has a cost of living index of 89.9, while North Carolina’s is a touch higher at 90.6. The difference is slight, but it could be meaningful if you’re watching your budget closely.
Real Estate Considerations
Housing is a big part of the cost of living, and in North Carolina, it’s about 2% more expensive than in Tennessee.
The states also differ when it comes to property taxes. In Tennessee, property taxes are assessed at 25% of the market value, while North Carolina offers homestead exemptions for older adults and disabled veterans, which could lower the tax burden for those who qualify.
Population, Education, and Job Markets
When you’re trying to decide where to live, it’s important to consider the population of the state, the quality of the schools, and the strength of the job market. Here’s how North Carolina and Tennessee stack up in those categories.
Population and Education
North Carolina is home to around 9.5 million people, making it more populous than Tennessee, which has about 6.3 million residents. Tennessee has more public school districts than North Carolina, with over 140 compared to North Carolina’s 115 or so.
Job Markets
Both states have relatively strong job markets. Nashville, Tennessee, is a major center for entertainment, education, and health services. Raleigh, North Carolina, is known as a research hub.
Recent data show that Tennessee has slightly higher job growth than its neighbor to the east.
Outdoor Recreation and Climate
If you’re an outdoorsy type, both North Carolina and Tennessee have a lot to offer. Both states provide access to the Appalachian Trail, and both have thriving hiking, fishing, and camping communities.
You’ll find more variety in North Carolina, however. The western part of the state offers mountainous terrain and cooler temperatures, while the eastern part is closer to the coast, with warmer, more humid conditions. Tennessee tends to be a bit more consistent in its climate, with hot summers and mild winters across the state.
Taxes and Retirement
If you’re thinking about retiring, it’s worth taking a closer look at the tax picture in both states.
Tax Benefits in Tennessee
Tennessee is known as a tax-friendly state, particularly for retirees. The state has no state income tax, so your retirement income won’t be taxed at the state level. Good news if you’re on a fixed income!
Tennessee also doesn’t have estate or inheritance taxes, and it offers a variety of tax exemptions for homeowners and other taxpayers.
Tax Implications in North Carolina
In North Carolina, the state taxes income, including money you withdraw from retirement accounts. That could affect your bottom line as you plan your retirement.
UNC vs. Tennessee on the Diamond
The Tar Heels and the Volunteers have a history of competitive baseball games, making this a rivalry worth watching. Let’s take a look at how the two teams stack up.
Over the last 8 games, UNC has won 5 and Tennessee has won 3. UNC enjoyed a 4-game winning streak against the Volunteers between 2006 and 2019. Tennessee, however, has never won more than one game in a row against UNC.
The most recent contest between the two teams was on June 16, 2024.
Frequently Asked Questions
Is it cheaper to retire in Tennessee or North Carolina?
Generally, Tennessee is considered more affordable for retirement due to its lower cost of living and lack of a state income tax. However, property taxes can be higher in some areas of Tennessee compared to North Carolina. Ultimately, the “cheaper” option depends on your specific lifestyle and location preferences.
Are taxes lower in Tennessee or North Carolina?
Tennessee has a significant advantage in terms of income tax, as it doesn’t have one (excluding the Hall Tax on investment income, which is being phased out). North Carolina has a flat income tax. However, sales tax rates are generally higher in Tennessee, and property tax rates can vary depending on the county.
Is it better to live in TN or NC?
That’s a tough one! “Better” is subjective. Tennessee offers a lower cost of living and no state income tax, making it attractive to those prioritizing affordability. North Carolina boasts a strong economy, diverse job market, beautiful beaches, and slightly better schools. Consider your priorities – career opportunities, access to nature, tax burden, cultural scene – to determine which state aligns best with your needs.
Final Thoughts
North Carolina and Tennessee share some similarities, but they also have key differences. One may appeal to you more than the other, depending on your priorities.
North Carolina offers a strong economy, quality education, and beautiful beaches, while Tennessee boasts a lower cost of living, vibrant music scene, and breathtaking mountains.
Before you make your choice, be sure to explore both states and weigh the factors carefully to determine which one is the best fit for you.