Each year, nearly a quarter of a million active adults move to new homes for retirement, and if you’re asking, “Is it better to retire to FL or NC?” you’re not alone. The Southeast remains one of the top retirement destinations in the U.S., with Florida and North Carolina leading the way thanks to their unique benefits for retirees.
Both states offer numerous 55+ communities, but differences in affordability, climate, and lifestyle may help you decide which one best fits your retirement dreams. In this article, we’ll compare Florida and North Carolina side-by-side to make your choice easier.
Cost of Living & Housing Affordability
To gauge the general affordability of each state, we’ll examine the 2024 cost of living index, according to World Population Review. This evaluates the overall cost of living across six subcategories. For each metric, 100 is the national average.
Florida
- Overall: 102.8
- Groceries: 105.2
- Housing: 108.1
- Utilities: 101.9
- Transportation: 98.8
- Health Care: 99
North Carolina
- Overall: 97.8
- Groceries: 98.4
- Housing: 93.3
- Utilities: 97.1
- Transportation: 93.6
- Health Care: 104.7
NC for Affordability and FL for Health Care
North Carolina has a clear lead when it comes to the cost of living. The Tar Heel state is more affordable in almost every category, except health care, which could be a very important factor for active adults with certain health considerations.
Regarding the price of homes, North Carolina also has an advantage with a median home cost of $368,000. Florida’s median cost is $412,000. However, looking at market trends specific to 55+ communities, Florida has seen a recent dip in prices and an increase in inventory, leading to a buyer’s market that gives active adults more leverage. Florida may also be a better choice for retirees looking to buy a home because there are far more 55+ communities, providing more options for a wider range of budgets and lifestyles. North Carolina, on the other hand, has a more stable market, which can make for better investment opportunities.
It’s important to note that these are averages and, based on location, you can find affordable 55+ communities in both Florida and North Carolina.
Taxes & Financial Benefits
Although North Carolina is the more affordable state of the two, when we take into account the taxes and financial benefits of both states, it can turn the tide in favor of Florida. The Sunshine State is far more tax-friendly to retirees, allowing them to make the most of their budget.
Income Tax
Florida has no state income tax, which means all forms of retirement income are exempt, including retirement savings accounts like 401(k)s and IRAs, as well as Social Security benefits and all forms of pensions.
North Carolina has a flat tax rate of 4.5% which will apply to almost all forms of retirement income. However, Social Security benefits are exempt from income tax, and some government and military pensions may also be exempt if certain requirements are met. There are no other special exemptions or deductions available to retirees in North Carolina, but all residents of the state can take a standard deduction, which is, at a minimum, $12,750 for single filers. Retirees who have other forms of investment income outside of retirement savings should also note that capital gains are treated as regular income and taxed accordingly in the Tar Heel State.
Property Tax
Property taxes in Florida are fairly low, with an average rate of 0.82% which is slightly below the U.S. average. Florida also has an exceptional Homestead Exemption, which allows homeowners to reduce the taxable value of their property by $25,000 (with an additional $25,000 reduction that applies to all non-school-funding property taxes). Some residents who are 65+ may also be eligible for an additional $50,000 exemption.
In North Carolina, property tax rates are even lower at 0.73%. However, they have a less amenable Homestead Exemption, which only applies to low-income residents and has a maximum value of either $25,000 or 50% of the home’s taxable value, depending on which number is greater. Some low-income residents may also be eligible for a property tax deferment program.
Sales and Inheritance Tax
Both states have an average sales tax of around 7%. Prescription drugs are exempt from sales tax in both states, and groceries are exempt in Florida, while North Carolina has a reduced 2% sales tax on groceries.
There is no estate or inheritance tax in either state. Wherever you end up, any property or valuables left to loved ones can be gifted tax-free.
Climate & Weather
Part of the reason so many retirees flock to the Southeastern states is the generally pleasant, warm climate. However, both Florida and North Carolina have their unique appeal, so which one is better mostly comes down to personal preference.
Florida
Florida is nicknamed the Sunshine State for a reason. The state mostly lies in a humid subtropical climate zone, with a small tropical region covering parts of Miami and the Florida Keys. This means that residents can expect warm, sunny weather throughout the whole year. Although it gets cooler during the winter months, there’s no snowfall, and winter temperatures are warmer than in many other parts of the country.
Florida’s wet season is during the summer and early fall. This brings high temperatures and humidity, with brief afternoon thunderstorms. August and October are also hurricane season for the region, with the potential for tropical storms to blow in from the Atlantic Ocean, though there are plenty of cities that are less prone to hurricane activity.
Most of the year, the weather is typically quite pleasant. Because the state is basically one giant peninsula, residents who live along the coastal regions get to enjoy the moderating influence of cool ocean breezes, which can help blow away some of the higher summer temperatures.
North Carolina
For those who prefer more diverse weather types, North Carolina might be a better option. The state mostly lies in a humid subtropical climate zone like Florida, but because of the different geography, residents are still able to enjoy more traditional four-season experiences throughout the year.
North Carolina has three distinct regions: the Atlantic coastal plains in the east, the central Piedmont Plateau, and the Appalachian highlands in the west. In addition to the moderating effects of the Atlantic Ocean, the Appalachian Mountains help to block winds and storms blowing in from Canada and the Midwest.
The summer months are hot and humid, with occasional thunderstorms and slightly lower temperatures in the mountains and coastal areas. Winter weather can vary by location, with much lower temperatures and snowfall more prevalent in the mountains. However, the ranges also keep the rest of the state sheltered from the strong winter cold fronts. Spring and fall bring fluctuations in temperature, along with the expected blooming and shedding of foliage that can make those months so pleasant to experience.
Although rarer than in Florida, the coastal areas are also susceptible to the risk of tropical storms and hurricanes during August and October.
Lifestyle & Recreation
Despite the similar climates and location on the Atlantic Coastline, Florida and North Carolina each have a distinct vibe that caters to different lifestyles and hobbies.
Outdoor Recreation and Active Lifestyle
Aquatics take the main focus for outdoor recreation in Florida. The state boasts hundreds of miles of beaches along the coast of the Atlantic Ocean and Gulf of Mexico. Inland, there are thousands of lakes, providing endless opportunities for swimming, boating, fishing, beachgoing, snorkeling, scuba diving, and so much more. Several state and national parks highlight the diverse natural ecosystems throughout the state.
Although its southern sibling has a more popular beach scene, North Carolina has its share of coastal beaches. Where the state stands in contrast to Florida is the mountain lakes and rivers that offer up cooler waters in more serene locales. The mountains also provide great opportunities for hiking, camping, biking, wildlife viewing, and plenty of other outdoor adventures. The Blue Ridge and Great Smoky Mountains are also home to some of the most popular state and national parks in North Carolina.
While North Carolina has dozens of beautiful golf courses, they simply can’t compete with the hundreds of world-class courses in Florida. The flat, open terrain in the Sunshine State won’t make for the best hiking, but it does provide plenty of space to walk the fairways and swing the sticks in the year-round warm weather.
Cultural Hubs
Florida is home to several major metropolitan cities throughout the state, such as Miami, Orlando, Tampa, and Jacksonville, which all have their own diverse, bustling atmosphere. Active adults who enjoy urban life may opt to settle down near one of these hubs to enjoy daily access to nightlife, culinary options, arts communities, professional sports, museums, and all of the other big-city amenities they provide. There are also multiple international airports in Florida, and even a couple of cruise ports, for those who like to explore a little further from home.
North Carolina has its own cultural hubs, including Charlotte, Raleigh, and Asheville. Although those cities are much smaller than the ones in Florida, they have their own rich culture and laid-back charms. For instance, Asheville is known as a bohemian city that celebrates local arts and an appreciation for the natural serenity of mountain living. Or for something a little more lively, retirees can settle down near Charlotte, which has a skyline dominated by skyscrapers, major professional sports teams, and the Charlotte Douglas International Airport for when a getaway is calling.
Health Care Access
Health care access is another category that can be highly subjective. Some active adults may not need to do much more than a yearly checkup, while others may need regular visits to maintain chronic health conditions. Here is a breakdown of the health care systems in each state so you can decide which is right for your needs.
Top Hospitals
Florida has 31 hospitals that have been recognized by U.S. News and World Report as either nationally ranked or rated high-performing in particular specialties, procedures, and conditions. These are the top-ranked hospitals in the state:
- Mayo Clinic
- Tampa General Hospital
- UF Health Shands Hospital
- AdventHealth Orlando
- Sarasota Memorial Hospital
North Carolina has 19 hospitals recognized by U.S. News and World Report. These are the top-ranking hospitals:
- Duke University Hospital
- UNC Hospitals
- Atrium Health Carolinas Medical Center
- UNC Rex Hospital
- ECU Health Medical Center
Access, Care, and Costs
Florida has far more ranked hospitals, as well as more hospitals overall. Because the state has such a high population of retirees, many of these health networks have specialization in procedures and conditions particular to older adults, providing a wide range of options for care.
Although North Carolina’s health networks aren’t as prevalent or as specifically catered to aging adults, they have many great health care facilities that are attached to academic institutions, which can offer better continuity of care and cutting-edge, research-driven treatments for special conditions. The state is also working on an initiative to focus on increased quality of life for active adults as their population of retirees grows.
Florida offers lower overall health care costs, but North Carolina has recently been making legislative efforts to increase the access and affordability of health care to residents of the state through expanded Medicaid and other programs.
Recommended Florida 55+ Communities
On Top of the World – Ocala, FL
On Top of the World has been around since 1981. It’s one of the largest 55+ communities in Florida, with about 10,000 homes. Whether you’re looking for a cozy attached villa or a spacious single-family home, you’ll find floor plans ranging from around 1,000 to over 3,000 square feet.
But it’s not just about the homes; this place is packed with resort-style amenities. Think dance and fitness studios, onsite restaurants, shops, and a library. Outside, you’ll find swimming pools, picnic spots, gardening plots, and plenty of ways to stay active, like walking and biking trails, athletic courts, and three golf courses. And if you’re into socializing or picking up a new hobby, there are 175 clubs to choose from, covering just about every interest you can imagine.
The Villages – The Villages, FL
The Villages is one of the biggest 55+ communities in Florida. Actually, it’s more like a small city, with around 70,000 homes. You’ll find a wide mix of options here, from condos and attached villas to single-family homes, with over a hundred floor plans to choose from. Whether you’re looking for something brand new or a resale, there’s plenty on the market.
What really sets The Villages apart is how self-contained it is. You’ve got everything you need right inside the community: restaurants, shops, banks, post offices, places of worship, and even health care facilities. And when it comes to amenities, there are more than three dozen community centers, over 100 outdoor pools, 41 golf courses, and even equestrian facilities. It’s truly a place where you can do as much—or as little—as you’d like.
Oak Run – Ocala, FL
Oak Run is a gated 55+ community with just over 3,500 homes, offering a mix of single-family and attached styles. At the heart of the neighborhood is the Palm Grove Club, a spacious 30,000-square-foot clubhouse where residents can hit the fitness center, play cards, host events in the ballroom, or whip something up in the catering kitchen.
Also, Oak Run has several other clubhouses scattered throughout, each packed with amenities. You’ll find indoor pools, whirlpool spas, a ceramics room, and even more space for gatherings and activities. Outside, there’s plenty to do too, including the Royal Oaks Golf Club, courts for pickleball and bocce ball, horseshoe pits, and scenic trails for walking or biking. And when you want to grab a bite or do a little shopping, there are onsite dining options and retail spots right in the community.
Latitude Margaritaville – Daytona Beach, FL
Latitude Margaritaville, inspired by the easygoing lifestyle of Jimmy Buffett, is all about fun, relaxation, and that permanent vacation vibe. From the private beach club to the Latitude Bar & Chill Restaurant, the resort-style amenities make it feel like you’re on holiday every day, without ever leaving the neighborhood.
At the heart of the community is the Town Square, where there’s always something happening: live music, a theater, shops, and more. And when it comes to choosing a home, there’s plenty of variety. Latitude offers over a dozen unique floor plans, ranging from 1,210 to 2,564 square feet, so you can find something that suits your style and space needs.
Stone Creek – Ocala, FL
Stone Creek, located in Ocala, is a gated 55+ community with about 3,800 homes, offering a nice mix of single-family and attached options. There’s something for just about everyone here, with floor plans ranging from 1,133 to 2,634 square feet. You can find homes with anywhere from one to five bedrooms, up to four bathrooms, and roomy two- or three-car garages.
When it comes to amenities, Stone Creek delivers. Residents can enjoy a top-notch fitness center, an indoor pool, a cozy library, and even a steam room and sauna. There’s also a massive 29-acre recreation complex that makes it easy to stay active and social. Outside, you’ll find an 18-hole championship golf course, an outdoor pool, pickleball courts, horseshoe pits, and peaceful fishing lakes. It’s got a little bit of everything for anyone who loves to stay busy or just enjoy the outdoors.
Recommended South Carolina 55+ Communities
Carolina Arbors – Durham, NC
Carolina Arbors is a lively 55+ Del Webb community in Durham, offering low-maintenance homes and resort-style amenities. Residents enjoy the expansive Piedmont Hall clubhouse, indoor and outdoor pools, pickleball courts, dog park, and over 100 social clubs and activities. Set on 400 acres with scenic trails and green spaces, it’s perfect for active adults. Plus, its prime location near Brier Creek, RDU Airport, and top health care makes daily life both easy and exciting.
Carolina Preserve – Cary, NC
Carolina Preserve is a lively 55+ Del Webb community offering over 1,200 low-maintenance homes and an impressive 34,000-square-foot clubhouse with pools, fitness centers, and sports courts. Residents enjoy miles of trails, access to Amberly’s amenities, and a full calendar of clubs and events managed by an onsite activities director. Located in the heart of the Triangle, it’s ideal for active adults looking for connection and convenience.
St. James Plantation – Southport, NC
St. James Plantation is a sprawling gated community along the Intracoastal Waterway. It offers resort-style living with golf courses, a marina, a private beach club, fitness centers, pools, and nature trails. With a variety of home styles and over 100 clubs and social events, it’s perfect for active adults seeking coastal charm, top-tier amenities, and a welcoming atmosphere.
Trilogy Lake Norman – Denver, NC
A gated 55+ community just minutes from the lake and about 25 minutes from Charlotte, Trilogy Lake Norman features a 30,000-square-foot clubhouse with pools, a restaurant, a fitness center, and hobby studios. Residents enjoy scenic trails, a Freedom Boat Club membership, and a full calendar of social clubs and events. Homes range from cozy to spacious, offering the perfect mix of lakeside living and easy access to city amenities.
Brunswick Forest – Leland, NC
Brunswick Forest is a master-planned community set among beautiful woodlands, just minutes from Wilmington and the coast. It offers a variety of homes, from townhouses to spacious single-family houses, plus great amenities like a golf course, pools, tennis and pickleball courts, and a fitness center. Residents enjoy kayaking, walking trails, and a convenient town center with shops and dining.
Which Is the Best Fit for Your Retirement?
In summary, Florida tends to be a bit pricier in terms of cost of living and home prices, but it makes up for it with a retiree-friendly tax climate, vibrant city life, and endless opportunities to enjoy sunshine and water activities. North Carolina, by contrast, offers a more laid-back pace, four distinct seasons, diverse natural scenery, and generally more affordable living.
So, which state suits your retirement dreams best? Whether you’re drawn to Florida’s energy or North Carolina’s tranquility, both offer a fantastic range of 55+ communities waiting for you to explore.
Thinking about making a move? Connect with a local real estate expert at 55places.com and start finding your ideal 55+ community today!
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