Retirees Are Leaving the Carolinas in Droves (And Going to These 4 Spots Instead)

North Carolina and South Carolina are still winning more movers than they lose. Census Bureau estimates show both states among the biggest gainers from people moving in from other states between 2023 and 2024. That count covers movers of all ages, not just retirees. Keep your retirement budget in mind, too.

But there is a second story underneath those gains. Some retirees who moved to the Carolinas are packing up again. Home insurance bills are rising, coastal storm risk is real, prices have jumped in the most popular spots, and North Carolina taxes every dollar you pull out of a 401(k). Here is why some retirees leave, and the five states they tend to choose instead.

What the migration numbers actually show

This is churn, not an exodus. Lots of retirees arrive, and a good number move on again a few years later.

Census Bureau estimates put North Carolina's gain from domestic movers at 82,288 people between 2023 and 2024, with South Carolina at 68,043 and Texas highest at 85,267. Those are all-age numbers, so they do not tell you how many retirees came or went.

Moving company data points the same way. U-Haul's midyear 2026 report, covered by Fortune in October 2026, found the Carolinas now rank ahead of Florida for baby boomer customers moving across state lines, with Florida third.

North Carolina taxes most 401(k) withdrawals

What this means for you: in North Carolina, money you pull from a 401(k) or traditional IRA is taxed like a paycheck, with no special break for being retired.

The state's flat income tax rate is 3.99% for 2026. It is scheduled to drop to 3.49% in 2027 under a tax law the state passed in 2023 that lowers the rate when state revenue hits set targets.

That is a slow improvement. But over a 20- or 30-year retirement, a tax on every withdrawal still adds up, which is one reason some retirees look at neighboring states.

Coastal prices and storm risk are squeezing the Carolinas

Retirees chasing the coast run into sticker shock. Zillow pegged the typical home value in Charleston, South Carolina, near $600,000 in mid-2026, far above the big inland markets in North Carolina.

Asheville shows a different problem. The typical home value there was $458,266 in July 2026, down 5.2% from a year earlier, according to Zillow. Charlotte was lower still at $381,219 in September 2026, down about 1% year over year.

So values are cooling inland while insurance costs climb along the coast. For some retirees, that combination makes the math feel less comfortable than it did when they arrived.

North Carolina insurance costs keep climbing, even after a big win

State regulators recently knocked down a huge proposed rate hike, but bills are still going up.

Home insurance rates rose an average of 7.5% starting June 1, 2026, according to WRAL's reporting on state insurance filings. For policies that cover rental houses and vacation homes, the insurance industry's rate bureau asked for a 68.3% increase spread over two years. Insurance Commissioner Mike Causey settled for 5% a year instead, with the first step effective Oct. 1, 2026, and the second on Oct. 1, 2027, according to the state Department of Insurance.

That is real relief compared with what was on the table. It is still an increase, though, on top of premiums that are already high in storm-exposed counties.

Tennessee skips the income tax and costs less overall

What this means for you: Tennessee has no state income tax, so 401(k) withdrawals, pensions, and Social Security all arrive without a state bite.

Housing backs that up. Zillow put the typical home value in Knoxville at $374,452 in July 2026, up 1.1% from a year earlier, and Nashville at $434,068, down 3.0%.

Day-to-day costs look friendly too. In the Missouri Economic Research and Information Center's cost of living index for the second quarter of 2026, Tennessee ranked 10th lowest among the states tracked, with an overall index of 89.7. Its housing component came in around 20% below the national average.

Georgia just sweetened its retiree tax breaks

What this means for you: Georgia cut taxes for retirees twice, once for this year and once for next.

For the 2026 tax year, Georgia's flat income tax rate dropped to 4.99% from 5.19%, with more cuts scheduled if state revenue hits its targets. Starting with the 2027 tax year, residents 65 and older can leave up to $70,000 of retirement income off their state return, up from $65,000 now. Both changes came from a law the state passed in spring 2026. Georgia also does not tax Social Security benefits, according to that same Congressional Research Service report.

Home prices help as well. Zillow put Atlanta's typical home value at $387,226 in July 2026, down 2.4% from a year earlier, and Savannah's at $325,155, down 2.8%.

Texas has no income tax, but check the insurance quote

What this means for you: Texas takes no state income tax, so none of your retirement income is taxed by the state.

It is also the country's biggest magnet for movers. Census Bureau estimates show Texas gained 85,267 people from domestic migration between 2023 and 2024, more than any other state. That figure covers movers of all ages.

The catch is coverage. A federal watchdog report found that average home insurance premiums nationwide rose about 27% from 2019 to 2024, from $2,235 to $2,829, with the sharpest jumps in coastal areas exposed to wind damage. Much of the Texas Gulf Coast falls in that group, so a quote for a specific address matters more than any statewide average.

Florida still draws retirees, at an insurance price

What this means for you: Florida also has no state income tax, and it is still a top-three destination for boomers on the move, according to U-Haul's midyear 2026 data.

Insurance is the offset. Census Bureau survey data for 2023 showed Florida with the highest median home insurance cost in the country among homeowners with a mortgage, at $2,273 a year, followed by Louisiana at $2,140 and Oklahoma at $2,041.

A federal watchdog report tells the same story a different way: measured against household income, premiums weigh heaviest in Florida, Louisiana, and Oklahoma.

The whole carrying cost matters more than the tax line

No single number settles the question. A state with no income tax and sky-high premiums can cost more than a state with a modest income tax, cheaper coverage, and cheaper houses.

A useful comparison puts four things side by side: home prices, insurance premiums, property taxes, and how the state treats retirement income. A financial advisor or the state's revenue department can help you run those numbers for your own mix of income.

Bottom line

The Carolinas have not lost their appeal. They are still gaining more movers than they lose, even as a visible slice of retirees move on, often chasing cheaper insurance, lighter taxes, or a different pace of life.

Before you relocate, it can help to get insurance quotes for a specific address, coastal and inland. Premiums can swing sharply inside the same state, and that one step often says more about your real costs than any statewide average.

You May Also Like

23 Ways To Get Money Without Getting A Second Job

By FinanceBuzz Editors

How To Save Money on Car Insurance: 12 Ways to Lower Rates

By Elyssa Kirkham

10 Things Seniors Born Between 1941-1969 Could Take Advantage Of

By FinanceBuzz Editors

19 Dumbest Things Smart People Waste Money On

By Team FBZ

7 Moves If You Want to Stop Living Paycheck to Paycheck

By FinanceBuzz Editors

7 Clever Ways to Crush Your Debt

By FinanceBuzz Editors

Save Money and Get Huge Discounts on Everyday Purchases

AARP Benefits

• Huge discounts on travel, groceries, prescriptions and more
• Access to financial planning resources and health tools
• Join AARP and get 25% off with automatic renewal

Become a member now!

---

Subscribe Today

Unlock the Best Banking Deals and Bonuses

From high-yield savings accounts to cashback checking and sign-up bonuses, we bring you the best banking offers to grow your money smarter.

or

SEE TOP BANKING OFFERS →

By submitting this form you agree to receive emails from FinanceBuzz and to the privacy policy and terms