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Wilmington vs Charleston: North Carolina or South Carolina Tax Rules on the Coast

Wilmington and Charleston are the two historic port cities of the Carolina coast, each with a major hospital, an airport and a downtown, and both exposed to hurricanes and tidal flooding. The decision between them is also a decision between two state tax systems. Wilmington is in New Hanover County, North Carolina, which taxes income at one flat rate and relieves older owners' property tax only below an income limit. Charleston is in South Carolina, which taxes income at two rates, deducts retirement income and age-65 income, and exempts the first part of an older owner's home value without an income test, but assesses property by classification and levies it in mills.

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Wilmington vs Charleston: the short answer

Wilmington and Charleston are the two historic port cities of the Carolina coast, each with a major hospital, an airport and a downtown, and both exposed to hurricanes and tidal flooding. The decision between them is also a decision between two state tax systems. Wilmington is in New Hanover County, North Carolina, which taxes income at one flat rate and relieves older owners' property tax only below an income limit. Charleston is in South Carolina, which taxes income at two rates, deducts retirement income and age-65 income, and exempts the first part of an older owner's home value without an income test, but assesses property by classification and levies it in mills.

None of these differences settles the question on its own, because the bill depends on income mix, home value and the exact parcel. The sections below set the rules side by side using state tax agency, county and city pages, with the year stated for each rate. They draw on the NC vs SC tax comparison and the two state guides, North Carolina retirement taxes and South Carolina retirement taxes. This is general information, not tax advice; confirm every figure with the Department of Revenue and the county before acting.

Full profiles: Wilmington (North Carolina) and Charleston (South Carolina).

Which one fits you

Choose Wilmington if

  • You prefer one flat income tax rate of 3.99 percent, which North Carolina's Department of Revenue lists for taxable years after 2025, and no state tax on Social Security.
  • You want a county property rate stated per $100 of value, such as New Hanover County's 30.6 cents, rather than millage applied to a classified assessment.
  • You want a Del Webb neighborhood that is resale-only, with a mature market: the Riverlights active-adult page says the Del Webb neighborhood is sold out of new homes.
  • You want a regional medical center that is a Level II trauma center verified by the American College of Surgeons, with a cancer center, AirLink and a women's and children's hospital.

Choose Charleston if

  • You have pension, IRA or wage income and want South Carolina's structure: a 1.99 percent rate on the first $30,000 of taxable income and 5.21 percent above, with a retirement income deduction and an age-65 deduction.
  • You are 65 or older and want a homestead exemption that fully exempts the first $50,000 of a legal residence's fair market value, temporarily $75,000 for tax year 2026, without an income test.
  • You want the state's only solid organ transplant center and a Level I trauma center at MUSC Health University Medical Center in downtown Charleston.
  • You want new construction at the city's edge and accept the city's flood-zone status, since the City of Charleston says all properties in the city are in a flood zone.

Wilmington and Charleston side by side

DimensionWilmingtonCharleston
State income taxNorth Carolina's Department of Revenue says the individual income tax rate is 4.25% for taxable years beginning in 2025 and 3.99% for taxable years after 2025, with additional rate changes that may apply from 2027 under rate reduction triggers. North Carolina does not tax Social Security benefits taxed on the federal return, which may be deducted on the state return, and the Bailey exclusion covers certain government retirees with five or more years of creditable service as of August 12, 1989. As our arithmetic and an illustration of rate structure only, $60,000 of taxable income at 3.99 percent is $2,394 before credits.South Carolina's Department of Revenue says H. 4216, signed March 30, 2026, sets a rate of 1.99% on income under $30,000 and 5.21%, minus $966, on income of $30,000 and above. South Carolina deducts up to $3,000 of retirement income before 65 and up to $10,000 from the year a taxpayer reaches 65, plus an age-65 deduction of up to $15,000 reduced by the retirement deduction claimed. As our arithmetic and an illustration of rate structure only, $60,000 of taxable income is $597 on the first $30,000 and $1,563 on the rest, or $2,160 in total, which is $234 less than the North Carolina illustration. Deductions differ, so this is not a head-to-head tax computation.
County and city property tax ratesNew Hanover County's adopted fiscal year 2026-27 budget maintains the county rate at 30.6 cents per $100, and the Department of Revenue lists the county at .3060, down from .4500 in 2024-25, with the latest revaluation in 2025 and the next in 2029. The county's 2026 rate page lists the City of Wilmington at .3315 per $100, up from .2825 for 2025 and .4200 for 2024, and a downtown Municipal Service District rate of .0500. As our arithmetic and an illustration, a home assessed at $400,000 would carry about $1,224 of county tax and $1,326 of city tax, or $2,550 combined, before any district charge.South Carolina property tax is billed by county and expressed in mills. The City of Charleston's financial report says Charleston County and Berkeley County assess and collect property taxes under joint billing agreements because the city lies in both. The South Carolina Association of Counties' 2025 compilation, revised February 2026, lists a City of Charleston rate of 0.0820 and county base millage of 0.0506 in its Charleston County table, with Charleston County School Board rates of 0.1425 for operations and 0.0230 for bond issues, and prints rates as decimals of a dollar per dollar of assessed value. In its Berkeley County table the city rate is printed as 0.0819, so use the auditor's bill for a specific parcel.
How the assessment worksNew Hanover County's rate is stated per $100 of assessed value. New Hanover County's revaluation took effect in 2025, which is why the county rate fell from .4500 to .3060: rates are reset so a county collects roughly the revenue it needs on the new values, so a lower rate does not by itself mean lower bills for a particular home.The South Carolina Department of Revenue's guidance says an owner-occupied residence is assessed at 4 percent and commercial and rental property at 6 percent, and that a residence qualifying for the 4 percent ratio is also exempt from school operating millage. As our arithmetic and an illustration, using the city, county base and school bond rates above, $400,000 of appraised value at 4 percent is $16,000 of assessed value, and 0.1556 of that is about $2,490, before any local sales tax credit, fee or special district. The illustration is for a qualifying primary residence; the county must approve the legal residence status first.
Relief for homeowners 65 and olderNorth Carolina's Elderly or Disabled Homestead Exclusion under G.S. 105-277.1 removes the greater of $25,000 or 50 percent of appraised value from a permanent residence owned by a resident who is 65 or older and whose income is at or below the limit, which the Department of Revenue's 2026 application states is $38,800. A household above the limit receives nothing from it. The circuit breaker limits tax to 4 percent of income at or below $38,800 and 5 percent of income up to $58,200, defers the rest as a lien and cannot be combined with the exclusion.South Carolina's Homestead Exemption in Section 12-37-250 exempts the first $50,000 of the fair market value of the dwelling place for owners at least 65, disabled or legally blind who have lived in the state at least a year, and the statute has no income test. The Department of Revenue says the General Assembly temporarily raised the exemption to $75,000 for tax year 2026 only, that it covers ad valorem taxes and not fees, and that the county must first approve legal residence status. Plan against $50,000 in later years unless the law changes.
Sales taxThe Department of Revenue's table lists New Hanover County at 7%, made up of the 4.75 percent state rate and applicable local rates, and excludes any prepared meal taxes imposed by local jurisdictions. As our arithmetic, a $10,000 taxable purchase carries $700 of sales tax.South Carolina's state rate is 6 percent. The South Carolina Department of Revenue's local tax lists show Charleston County with a Local Option Sales and Use Tax effective July 1, 1991, a 1% Education Capital Improvement Tax effective March 1, 2023 and a 0.5% Transportation Tax effective May 1, 2017. As our arithmetic, the state rate plus those last two components is at least 7.5 percent, or $750 on a $10,000 taxable purchase, before the Local Option tax. Berkeley County, where part of the city lies, is also on the education tax list, so confirm the combined rate for the address.
Hurricane evacuation and flood insuranceNew Hanover County is one of 21 North Carolina counties with state-designated Know Your Zone evacuation zones, with Zone A typically evacuated first and local officials deciding which zones to order out. The county says its shelters are shelters of last resort with very basic provisions. The Department of Insurance says windstorm and hail coverage may be excluded from a primary homeowners policy and written separately, often through the North Carolina Insurance Underwriting Association, which does not provide flood insurance. See the coastal hurricane and flood insurance guide.The City of Charleston's flood FAQ says all properties in the city are in a flood zone, though not all are in the FEMA Special Flood Hazard Area, and the city's Community Rating System rating is 6, which provides up to a 20% premium discount. Charleston County says a hurricane warning means a hurricane is expected within 36 hours and that residents should be ready to drive 20 to 50 miles inland. The city lists flood sources as the Stono, Ashley, Cooper and Wando Rivers, tidal creeks and the Atlantic Ocean. A standard NFIP policy covers structure only, contents need an additional policy and coverage starts after a 30-day waiting period.
HospitalsNovant Health New Hanover Regional Medical Center opened as New Hanover Memorial Hospital on June 14, 1967, began a partnership with Novant Health in 2021 and lists cardiac care, orthopedics, oncology, pediatrics, women's health, rehabilitation and trauma care. It states it is a Level II Trauma Center verified by the American College of Surgeons, and a second Novant page describes it as the region's only Level II Trauma Center. Milestones include the Zimmer Cancer Center, opened 2000, and the AirLink air ambulance service, introduced 2001.MUSC Health says University Medical Center in downtown Charleston is made up of four hospitals and MUSC Hollings Cancer Center, an NCI-designated cancer center. It says the campus is home to South Carolina's only solid organ transplant center and a Level I Trauma Center, with emergency care at 171 Ashley Avenue. Check that your Medicare plan network includes the system you would use, using the healthcare access guide.
Retirement housingRiverlights is a community on the Cape Fear River just south of historic downtown. Its active-adult page says the Del Webb neighborhood is sold out of new homes, so a buyer would purchase a resale, and that Riverlights also offers townhomes, single-family homes, semi-custom homes and rentals that are not described as age-restricted. Inside the city, downtown parcels carry the extra .0500 Municipal Service District rate.Del Webb Point Hope sells single-family homes of 1,345 to 2,712 square feet from $532,990 (Scenic collection), $676,990 (Distinctive) and $805,990 (Echelon). The Daniel Island News reported that the master plan covers 9,000 acres, with more than 50% of the acreage wetlands that will stay undeveloped, and that the community is still being built. See Del Webb Point Hope.

Related guides

Sources and review date

Last reviewed . Facts on this page come from the sources below; where a rule or figure can change, check the linked source before relying on it.

  1. Historic Tax Rates — New Hanover County, NC (accessed 2026-09-30)
  2. Fiscal Year 2026-2027 — New Hanover County, NC (accessed 2026-09-30)
  3. 2025-2026 County Tax Rates — North Carolina Department of Revenue (accessed 2026-09-30)
  4. Active Adult 55+ Homes at Riverlights in Wilmington, NC — Riverlights (accessed 2026-09-30)
  5. About New Hanover Regional Medical Center — Novant Health (accessed 2026-09-30)
  6. New Hanover Regional Medical Center — Novant Health (accessed 2026-09-30)
  7. Evacuation & Shelters — New Hanover County, NC (accessed 2026-09-30)
  8. Know Your Zone — North Carolina Department of Public Safety (accessed 2026-09-30)
  9. Windstorm and Hail — North Carolina Department of Insurance (accessed 2026-09-30)
  10. Current Sales and Use Tax Rates — North Carolina Department of Revenue (accessed 2026-09-30)
  11. Social Security and Railroad Retirement Benefits — North Carolina Department of Revenue (accessed 2026-09-30)
  12. Del Webb Point Hope | Charleston, South Carolina Homes — Del Webb (accessed 2026-09-30)
  13. The Point Hope Blueprint — The Daniel Island News (accessed 2026-09-30)
  14. Comprehensive Annual Financial Report (fiscal year 2015) — City of Charleston, South Carolina (accessed 2026-09-30)
  15. 2025 South Carolina Property Tax Rates by County (revised February 2026) — South Carolina Association of Counties (accessed 2026-09-30)
  16. Floodplain Mapping — City of Charleston (accessed 2026-09-30)
  17. Flood Information & FAQs — City of Charleston (accessed 2026-09-30)
  18. Hurricane Information — Charleston County Emergency Management Department (accessed 2026-09-30)
  19. Charleston Medical Center (University Medical Center) — MUSC Health (accessed 2026-09-30)
  20. Tax Rate Schedules — North Carolina Department of Revenue (accessed 2026-09-30)
  21. G.S. 105-277.1 Elderly or disabled property tax homestead exclusion — North Carolina General Assembly (accessed 2026-09-30)
  22. AV-9 Application for Property Tax Relief (2026) — North Carolina Department of Revenue (accessed 2026-09-30)
  23. Information about H. 4216 — South Carolina Department of Revenue (accessed 2026-09-30)
  24. Property Tax Exemptions — South Carolina Department of Revenue (accessed 2026-09-30)
  25. Property Tax FAQs — South Carolina Revenue and Fiscal Affairs Office (accessed 2026-09-30)
  26. SCTIED Chapter 5: Individual Property Tax (September 2025) — South Carolina Department of Revenue (accessed 2026-09-30)
  27. Local Sales Taxes — South Carolina Department of Revenue (accessed 2026-09-30)
  28. Code of Laws Title 12, Chapter 37 (Property Tax) — South Carolina Legislature (accessed 2026-09-30)
  29. Bailey Decision Concerning Federal, State and Local Retirement Benefits — North Carolina Department of Revenue (accessed 2026-09-30)
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