When deciding between moving to Tennessee or North Carolina, you'll find each state offers distinct advantages that may appeal to different preferences. Tennessee's lower cost of living and tax-friendly environment might catch your attention, while North Carolina's larger population and lifestyle may appeal to others. However, there's more to ponder beyond these factors. Assessing the pros and cons of each state can help to influence your choice. Learn more about Tennessee and North Carolina to determine which state might align best with your priorities.

Main Comparison Points

• Tennessee offers a lower overall property tax burden and no income tax, providing financial advantages.
• North Carolina has a larger population and boasts many higher education institutions.
• Both states have strong job markets, but Tennessee ranks second in job growth.
• North Carolina provides homestead exemptions for seniors, while Tennessee offers tax exemptions for seniors and a tax-freeze program.

Cost of Living and Real Estate

When comparing the cost of living in Tennessee and North Carolina, you'll find that Tennessee is the slightly more affordable option. Tennessee's overall cost of living index of 89.9 is slightly lower than North Carolina's 90.6, making it a more budget-friendly choice.

While housing costs are similar between the two states, with North Carolina being 2% pricier, Tennessee shines in other expense categories, including transportation, utilities, groceries, and miscellaneous costs. Even more savings can be found if you move to one of Tennessee’s affordable cities. 

Additionally, Tennessee boasts a lower overall property tax burden compared to North Carolina, providing homeowners with a more tax-friendly environment. Tennessee's property taxes are assessed at 25% of the home's market value, offering clarity on potential tax liabilities. However, North Carolina offers homestead exemptions for seniors and disabled veterans, potentially influencing living costs. 

Tennessee's affordability, marked by its lower daily expenses and reduced real estate taxes, makes it a compelling choice for those seeking a cost-effective lifestyle.

Population and Education

With a population of approximately 9.5 million residents, North Carolina surpasses Tennessee's population of around 6.3 million. North Carolina's population growth has been significant, adding over 900,000 residents between 2010 and 2020. In contrast, Tennessee's population is steadily increasing, with projections indicating a rise to 7.87 million residents by 2040.

Both states have a large number of public school districts; Tennessee is home to over 140 districts, while North Carolina has just over 115. In terms of higher education, North Carolina offers university options such as Duke University and the University of North Carolina at Chapel Hill. Tennessee’s colleges include the University of Tennessee, Vanderbilt University, and the University of Memphis.

These differences in population size and educational offerings between North Carolina and Tennessee can play a significant role in determining which state may better suit your preferences and priorities.

Outdoor Recreation and Climate

Both North Carolina and Tennessee offer diverse outdoor recreational opportunities and varying climates for residents and visitors to enjoy. North Carolina is home to more than 40 state parks and natural areas, including Mount Mitchell, the highest peak in the eastern U.S. 

On the other hand, Tennessee offers national parks, state parks, and forests that provide opportunities for whitewater rafting, rock climbing, and more. The Appalachian Trail runs along the border of both states, offering ample outdoor recreation opportunities for hiking enthusiasts.

While both states have similar overall climates, they vary by region, with North Carolina experiencing a moderate continental climate in the mountains and a subtropical climate in the southeastern part of the state. Tennessee, on the other hand, has four distinct seasons with hot summers and mild winters. Whether you prefer the coastal areas, mountains, or lowlands, both states have something to offer outdoor enthusiasts seeking adventure in their natural surroundings.

City Living and Job Markets

In Raleigh, North Carolina, opportunities abound with its renowned Research Triangle Park and esteemed universities. Raleigh stands out as a leading research center, attracting professionals in various fields. Additionally, Charlotte, North Carolina's largest city, serves as a bustling financial hub with rich cultural offerings.

On the other hand, Nashville, Tennessee, known as Music City, thrives as a hub for entertainment, education, and health services industries. The area’s GDP per capita has been on a steady incline over the past years. Tennessee’s economy maintains strong job markets with unemployment rates below the national average, providing diverse prospects in a variety of industries.

Whether you seek the research prowess of Raleigh or the dynamic job market in Nashville, both states offer enticing city living and promising career opportunities.

Taxes and Retirement

When considering where to retire, you'll find Tennessee's tax-friendly environment appealing. On the other hand, North Carolina taxes all income, impacting retirees financially, especially on retirement withdrawals and pension incomes.

North Carolina taxes all income, including retirement account withdrawals and pension incomes, potentially impacting retirees' financial situations. However, the state has a decreasing income tax rate over the next decade, which may influence retirees' tax burdens.

For retirees seeking favorable tax benefits, Tennessee stands out as a tax-friendly state due to its lack of estate or inheritance tax, exemptions on prescription drugs from sales taxes, and a property tax freeze program for seniors. These factors contribute to a more financially advantageous retirement experience in Tennessee compared to North Carolina.

Make Your New Home in Tennessee or North Carolina

Ultimately, when deciding between Tennessee and North Carolina, consider your priorities. If you value a lower cost of living and a tax-friendly environment, Tennessee may be the better choice for you. However, if you prefer a larger population and research centers, North Carolina could be the best place to call home. So, explore both states to find one that you’re ready to settle down in—but it’s difficult to argue with what the best cities in Tennessee have to offer!

If the opportunities of Nashville excite you, contact The Ashton Real Estate Group of RE/MAX Advantage with Nashville's MLS at (615) 603-3602 to get in touch with local real estate agents who can help find the perfect Nashville home for you today.