If you're moving from Chicago or the suburbs to the Charlotte area, you'll likely see two big changes: lower property taxes on a similar home and a very different housing stock, with far more single-family homes and new construction and fewer condos and bungalows. Your state income tax rate may go down too, unless most of your income is retirement income, which Illinois doesn't tax. Here's what to plan for before you buy.
By "Charlotte area," I mean the whole region people commute to Charlotte from, including Lake Norman, Matthews and Waxhaw in North Carolina and Fort Mill, Tega Cay, Indian Land and Rock Hill in South Carolina.
I'm Paul Mattos, a mortgage broker based in Fort Mill, SC, licensed in North and South Carolina. These are the questions Chicago-area buyers ask me most.
The Short Version for Chicago Buyers
Property taxes are usually much lower. Illinois has some of the highest property taxes in the country. In the Charlotte area, property taxes are typically a much smaller part of the monthly payment, especially in South Carolina for a primary residence.
State income tax is close, and may drop. Illinois has a flat 4.95% rate. North Carolina's flat rate is 3.99% for 2026 and is scheduled to drop to 3.49% in 2027. South Carolina's top rate is 5.21% for 2026.
Retirees should compare carefully. Illinois generally doesn't tax retirement income. North and South Carolina exempt Social Security but tax other retirement income, with some deductions.
Transfer taxes are smaller. If you're used to Chicago's city transfer tax, which buyers mostly pay, the Carolinas will feel very different. Here the transfer tax is small and customarily paid by the seller.
More house, less condo. Many Chicago buyers move from a condo, two-flat or older single-family home into a newer single-family home with a yard and garage.
Taxes: Where Chicago Buyers Usually Come Out Ahead
Property taxes
This is the biggest difference for most Chicago-area buyers. Cook County and the collar counties carry some of the highest property tax bills in the country, and reassessments can bring big jumps.
In the Charlotte area:
North Carolina taxes homes at full assessed value, but county and city rates are generally much lower than Cook, DuPage, Lake or Will County rates. Counties reappraise on a set schedule, so expect a change in a reappraisal year.
South Carolina assesses a primary residence at 4% of its value, compared with 6% for second homes and rentals, and owner-occupied homes get relief from school operating taxes. That's why Fort Mill, Tega Cay, Indian Land and Rock Hill are so popular with relocating buyers.
For the full comparison, read North Carolina vs. South Carolina property taxes explained.
State income tax
Illinois has a flat 4.95% income tax. North Carolina's flat rate is 3.99% for 2026, and a 2026 law lowers it to 3.49% starting in 2027, with more cuts scheduled in later years. South Carolina cut its top rate to 5.21% for 2026, and future cuts depend on state revenue goals.
If you move to North Carolina, your state income tax rate will likely go down. In South Carolina, it depends on your income, but the property tax savings often outweigh the difference.
If you're retired
Illinois is one of the friendliest states for retirement income. It generally doesn't tax Social Security, pensions or retirement account withdrawals. North and South Carolina don't tax Social Security, but they do tax other retirement income, with some deductions depending on your age and the type of income. If most of your income will come from a pension, 401(k) or IRA, talk with a tax professional and compare your total taxes, including property taxes, before deciding.
Look at the total, not just one tax
Compare your full yearly cost: income tax, property taxes and homeowners insurance on the specific home. Before you make an offer, I put together a Total Cost Analysis for the exact property, with taxes, insurance, HOA dues, the estimated payment and cash to close, so you can compare a real Carolina home with what you pay now.
Closing Costs and the Buying Process
Transfer taxes are much smaller
In Chicago, the city's real property transfer tax is $5.25 per $500 of the price, and buyers generally pay most of it. State and county transfer taxes are added on top, usually paid by the seller.
In the Carolinas:
North Carolina charges an excise tax of $1 per $500 of the sale price, customarily paid by the seller.
South Carolina charges a deed recording fee of $3.70 per $500 of the sale price, also customarily paid by the seller.
You'll still have lender fees, title insurance, attorney fees and prepaid taxes and insurance, but the city transfer tax Chicago buyers are used to isn't part of the picture.
Attorneys are involved, but differently
Chicago-area buyers are used to hiring their own real estate attorney for attorney review. In the Carolinas, a closing attorney typically handles the title work, prepares the closing documents and oversees the signing. Many offer remote or mail-away closings for out-of-state buyers.
Contract terms will feel different
There's no Chicago-style attorney review period. In North Carolina, buyers usually negotiate a due diligence period and pay a due diligence fee directly to the seller, separate from earnest money, and that fee is generally non-refundable if you walk away. South Carolina contracts vary more by agent and brokerage. A local buyer's agent will walk you through the current forms before you write an offer.
Coming From a Condo or Two-Flat
A lot of Chicago buyers are selling a condo, townhome or two-flat. A few things to know:
Selling a condo: Your buyer's loan approval can depend on the condo association's budget, reserves and insurance, so have your association documents ready to keep your sale on track.
Selling or keeping a two-flat: If you plan to keep a two-flat as a rental, the rental income may help you qualify for your Charlotte-area home. My rental income guide explains how Fannie Mae treats rental income from the home you're leaving.
Buying here: Most Charlotte-area buyers in the $300K to $800K range end up in a single-family home or a townhome, often with an HOA. Include HOA dues in your payment comparison.
Using Your Illinois Home's Equity
Sell first, then buy. The simplest path. Your sale proceeds become your down payment, and you only carry one mortgage. You may need a short-term rental or a rent-back while you shop.
Buy first, then sell. If you qualify with both payments, you can buy here before your Chicago-area home sells. A HELOC on your current home, opened before you list it, can help with the down payment.
Keep it as a rental. Many Chicago owners keep a condo or two-flat as a long-term rental and buy here with other funds.
For more on timing, read Can I buy a house before selling mine? and HELOC vs. cash-out refinance.
Getting Approved Before You Move
Relocating for a new job
Charlotte's banking, finance, energy and corporate headquarters bring a lot of transfers from Chicago. You can often get approved using a job offer letter before you start, as long as the loan program and the offer meet the guidelines for start date, salary and reserves. My Moving to Charlotte mortgage and cost of living guide explains how offer-letter approvals work.
Bonus and commission income
If a big part of your pay comes from bonuses or commissions, underwriters usually look at a two-year history before counting it. Bring your recent pay stubs, W-2s and any bonus or equity documentation to the first conversation.
Keeping a remote job
If you're keeping a Chicago-based job, get your employer's approval of the move in writing so the underwriter can confirm your income continues.
Price range and loan type
Most buyers I work with from Chicago are shopping between roughly $300K and $800K, which usually fits within conventional loan limits. Homes above the conforming loan limit need a jumbo loan. See conforming vs. jumbo loans if you're close to that line.
Start with a full pre-approval. Here's how to get pre-qualified and pre-approved in Charlotte.
What Chicago Buyers Tend to Like Here
Newer homes and new construction. Fort Mill, Indian Land, Waxhaw, Huntersville and the areas around Concord and Mooresville all have active builder communities. Builder incentives are often tied to the builder's preferred lender, so compare the full offer with a mortgage offer review. My new construction loans page covers financing for new and custom builds.
Walkable, older neighborhoods. If you're leaving Lincoln Park, Logan Square or Oak Park and want that feel, look at Dilworth, Plaza Midwood, NoDa and South End in Charlotte.
Lake living. If you'll miss Lake Michigan, Lake Norman and Lake Wylie offer waterfront and water-access neighborhoods, though waterfront homes usually come with a premium.
Fewer basements. Many homes here are built on crawl spaces or slabs, so plan on storage in a garage, bonus room or attic.
Should You Look in North Carolina or South Carolina?
North Carolina gives you Charlotte proper, Lake Norman and Union County towns like Waxhaw and Matthews, with a lower income tax rate.
South Carolina, mainly Fort Mill, Tega Cay, Indian Land, Rock Hill and Lake Wylie, offers the 4% primary residence assessment and is often closer to South Charlotte and Ballantyne than people expect.
If you'll be working in Charlotte, NC vs. SC: where should you live if you work in Charlotte? compares the two, and my Fort Mill SC mortgage guide covers the South Carolina side.
A Simple Timeline for Your Move
Six to twelve months out: Talk with me about your income, your current home and your price range. If you're retired, also talk with a tax professional.
Three to six months out: Get fully pre-approved, choose a buyer's agent and narrow down areas. If you're selling a condo, gather your association documents.
One to three months out: Tour homes in person or by video, get insurance quotes, and review a Total Cost Analysis before you write an offer.
Under contract: Inspections, appraisal and underwriting. Don't open new credit or move large sums of money without a paper trail.
Closing: Sign with the closing attorney, in person or remotely if that's available.
Explore the Charlotte Area
The Charlotte area stretches across two states, from Lake Norman in the north to Fort Mill, Rock Hill and Lake Wylie in South Carolina. Here are my local mortgage guides for each part of the region.
North Carolina
Charlotte: Charlotte overview, Ballantyne, SouthPark, Dilworth, Plaza Midwood, NoDa, Steele Creek
Lake Norman: Lake Norman overview, Huntersville, Cornelius, Davidson, Mooresville
South Carolina
Comparing your options
Moving from another state?
Frequently Asked Questions
Are property taxes lower in Charlotte than in Chicago?
In most cases, yes. Illinois has some of the highest property taxes in the country, and Charlotte-area property taxes are usually a much smaller part of the monthly payment, especially in South Carolina, where a primary residence is assessed at 4%. Your exact bill depends on the county, city and home value.
Will my income taxes go up if I move from Illinois?
In North Carolina, your state income tax rate will likely go down, since North Carolina's flat rate is lower than Illinois's 4.95%. In South Carolina, it depends on your income. Retirees are the exception, because Illinois generally doesn't tax retirement income and the Carolinas tax most of it except Social Security.
Do I pay a transfer tax when I buy in the Charlotte area?
Not usually. Transfer taxes in North and South Carolina are small and customarily paid by the seller, unlike Chicago's city transfer tax, which buyers mostly pay.
Can I keep my Chicago condo or two-flat as a rental and still buy here?
Often, yes, if you can qualify with both payments. Rental income from the home you're leaving may count toward qualifying under certain guidelines, especially with a signed lease and proof of the deposit.
Which Charlotte-area neighborhoods feel most like Chicago?
If you want walkability and older homes, buyers from Chicago often like Dilworth, Plaza Midwood, NoDa and South End. For more space and newer homes, many look at Fort Mill, Waxhaw, Huntersville and Ballantyne.
Can I get pre-approved while I still live in Illinois?
Yes. You can get fully pre-approved for a North or South Carolina purchase while you still live in Illinois, including with a job offer letter if you're relocating for work.
Let's Plan Your Move From Chicago
If you're moving from Chicago to the Charlotte area, I can help you compare the full cost of living on both sides of the state line, plan around your current home and get fully pre-approved before you start touring. Schedule a consultation or start your application when you're ready.
Paul Mattos
Mortgage Broker | Refine Mortgage
Carolina Home Financing
NMLS# 2339069 | Licensed in NC and SC
Call or text: 980-221-4959
Email: paulm@refinemortgage.net
This article is for educational purposes only and is not a commitment to lend. Loan programs, guidelines, tax rules and requirements vary by lender, borrower and property and are subject to change. Not all applicants will qualify. Consult a tax professional about your specific situation. Equal Housing Lender.
