If you're moving from Philadelphia, Pittsburgh, the Lehigh Valley or anywhere else in Pennsylvania to the Charlotte area, the biggest changes are in your taxes, your closing costs and the kind of homes you'll be shopping for. Many Pennsylvania buyers end up paying less in property and transfer taxes here, but your state income tax rate may go up, and retirees in particular should look closely before they move. Here's what to plan for.
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 Pennsylvania buyers ask me most.
The Short Version for Pennsylvania Buyers
No local wage tax. Most Pennsylvania towns and school districts add a local earned income tax, and Philadelphia has its own wage tax. North and South Carolina don't have a local income tax.
State income tax may be a little higher. Pennsylvania's flat rate is 3.07%. 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.
Retirement income is the big exception. Pennsylvania doesn't tax most retirement income. North and South Carolina both exempt Social Security, but they treat pensions and retirement account withdrawals differently than Pennsylvania does.
Transfer taxes are much lower. Pennsylvania buyers usually split a sizable realty transfer tax with the seller. In the Carolinas, the transfer tax is small and customarily paid by the seller.
Property taxes are often lower, especially compared with high school-tax areas around Philadelphia and Pittsburgh, and especially in South Carolina for a primary residence.
Income Taxes: State, Local and Retirement
State income tax
Pennsylvania's personal income tax is a flat 3.07%. In North Carolina, the 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.
On the state rate alone, you may pay a bit more here. But that's only part of the picture.
Local income taxes go away
Most Pennsylvania municipalities and school districts collect a local earned income tax on top of the state tax, and Philadelphia's wage tax is higher still. North Carolina and South Carolina don't have local income taxes. For many working households, losing the local tax closes much of the gap with the state rate, and for some it more than closes it.
If you're retired or close to it
Pennsylvania is one of the friendliest states for retirement income. It generally doesn't tax Social Security, pensions or retirement account withdrawals once you've retired. North Carolina and South Carolina don't tax Social Security either, but they do tax other retirement income, with some deductions and exemptions depending on your age and the type of income.
If most of your income will come from a pension, a 401(k) or an IRA, talk with a tax professional before you assume the Carolinas will cost you less. Property taxes and housing costs may still tip the math in your favor, but you'll want real numbers.
Property Taxes: Usually a Smaller Share of the Payment
Pennsylvania property taxes are driven heavily by school district taxes, and many suburbs around Philadelphia and Pittsburgh have some of the higher property tax bills in the region.
In the Charlotte area:
North Carolina taxes homes at full assessed value, but county and city rates are generally modest. Counties reappraise on a set schedule, so values and tax bills can jump 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 a big reason 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.
Before you make an offer, I put together a Total Cost Analysis for the exact home you're considering, with taxes, insurance, HOA dues, the estimated payment and cash to close. That way you're comparing a real Carolina home with your Pennsylvania costs, not statewide averages.
Closing Costs: Transfer Taxes Look Very Different
In Pennsylvania, the state charges a 1% realty transfer tax, and most local governments add their own, so the total is commonly 2% or more of the sale price. Buyers and sellers often split it, and in Philadelphia the total is much higher. For Pennsylvania buyers, that's often one of the biggest closing costs.
In the Carolinas, transfer taxes are much smaller:
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.
That doesn't mean closing in the Carolinas is free. You'll still have lender fees, title insurance, attorney fees, prepaid taxes and insurance, and escrow deposits. But the transfer tax that stings Pennsylvania buyers mostly drops out of your column.
An attorney runs your closing
In Pennsylvania, a title company or settlement agent usually handles closing. In North and South Carolina, a real estate attorney typically does. The attorney handles the title work, prepares the documents and oversees the signing. Many offer remote or mail-away options for out-of-state buyers, which helps if you're still in Pennsylvania.
Contract terms will feel different
North Carolina uses a due diligence period with a due diligence fee paid 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.
Using Your Pennsylvania Home's Equity
If you own a home in Pennsylvania, here are your main options:
Sell first, then buy. This is 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 can qualify with both payments, you can buy here before your Pennsylvania home sells. A HELOC on your current home, opened before you list it, can help with the down payment. If you plan to rent out your Pennsylvania home, Fannie Mae may let projected rental income help you qualify. I explain how that works in Fannie Mae's departing residence rental income rule.
Keep it as a rental. Some buyers keep their Pennsylvania home as a long-term rental and buy here with other funds. If you go this route, you're now a real estate investor, with the upside and the responsibilities that come with it.
For more on timing both transactions, read Can I buy a house before selling mine? If you're looking at a HELOC, my HELOC vs. cash-out refinance guide covers the tradeoffs.
Getting Approved Before You Move
Relocating for a new job
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.
Keeping a remote job
If you're keeping a Pennsylvania-based job and working remotely, get your employer's approval of the move in writing. Underwriters want to see that your income continues after you move.
Self-employed or retired
If you own a business, a bank statement loan may be worth comparing with a conventional loan when your tax returns show heavy write-offs. Retirees can often qualify using pension, Social Security and retirement account income, and some loan programs allow assets to be counted toward qualifying.
Price range and loan type
Most of the Pennsylvania buyers I work with 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, not a quick pre-qualification. Here's how to get pre-qualified and pre-approved in Charlotte.
What the Homes Look Like Here
Pennsylvania buyers often come from older housing: stone and brick colonials, row homes, twins and homes with full basements. The Charlotte area is a newer market, and a few things will feel different:
Basements are less common. Many homes are built on crawl spaces or slabs, so storage often means a garage, a bonus room or an attic.
New construction is everywhere. 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. A mortgage offer review can help, and my new construction loans page covers financing for new and custom builds.
HOAs are common. Most newer neighborhoods have an HOA, and dues vary a lot. Include them in your payment comparison.
Older, established neighborhoods exist too. If you want mature trees and character homes, look at Dilworth, Plaza Midwood and parts of Matthews and Rock Hill.
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 than South Carolina's top 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 in detail.
A Simple Timeline for Your Move
Six to twelve months out: Talk with me about your income, your Pennsylvania home and your price range. If you're retired, also talk with a tax professional about how your retirement income will be taxed here.
Three to six months out: Get fully pre-approved, choose a buyer's agent and narrow down areas.
One to three months out: Tour homes in person or by video, get insurance quotes on homes you like, and review a Total Cost Analysis before you write an offer.
Under contract: Inspections, appraisal and underwriting. Avoid opening new credit or moving large sums of money without a paper trail.
Closing: Sign with the closing attorney, in person or through a remote or mail-away closing 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 taxes lower in North Carolina or South Carolina than in Pennsylvania?
For many working households, yes once you count Pennsylvania's local earned income taxes and school-driven property taxes, even though the state income tax rate is higher here. Retirees are different, because Pennsylvania doesn't tax most retirement income. Compare your total yearly taxes on a specific home before deciding.
Do I pay a transfer tax when I buy a home in the Carolinas?
Transfer taxes are much smaller than in Pennsylvania and are customarily paid by the seller. North Carolina's excise tax is $1 per $500 of the sale price, and South Carolina's deed recording fee is $3.70 per $500. You'll still have other closing costs, like title insurance, attorney fees and prepaid items.
Is Fort Mill, SC a good fit for Pennsylvania buyers?
Many Pennsylvania buyers like Fort Mill and the other York County towns for the 4% primary residence assessment, newer homes and access to South Charlotte. Whether it fits you depends on your commute, budget and the type of home you want.
Do homes in the Charlotte area have basements?
Some do, but far fewer than in Pennsylvania. Most homes here are built on crawl spaces or slabs, so plan on storage in a garage, bonus room or attic.
Can I buy in the Charlotte area before I sell my Pennsylvania home?
Often, yes. If you qualify with both payments, you can buy first. A HELOC on your Pennsylvania home, opened before you list it, can help with the down payment, and projected rental income may help you qualify if you're keeping it as a rental.
Can I get pre-approved while I still live in Pennsylvania?
Yes. You can get fully pre-approved for a North or South Carolina purchase while you still live in Pennsylvania, including with a job offer letter if you're relocating for work.
Let's Plan Your Move From Pennsylvania
If you're moving from Pennsylvania to the Charlotte area, I can help you compare the full cost of living on both sides of the state line, plan around your Pennsylvania 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.
