North Carolina Guide for Canadians

Quick Facts

State Income Tax	4.25% flat rate (2025), decreasing to 3.99% in 2026
Sales Tax	4.75% state + local (average 7% total)
Driver's License Grace Period	60 days for residents
Residency Requirement for Tax	Domiciled in NC at any time during tax year
Vehicle Registration Deadline	30 days for residents
REAL ID Deadline	May 7, 2025 for domestic flights

First 90 Days Checklist

Week 1-2: Essential Documents

• Gather required documents for driver's license
• Open US bank account
• Set up temporary mailing address

Week 3-4: Official Registration

• Apply for North Carolina driver's license (within 60 days)
• Register vehicle if brought from Canada (within 30 days)
• Register to vote

Month 2-3: Establishing Residency

• Update address with Canadian financial institutions
• Establish North Carolina ties
• Consider North Carolina vehicle insurance

Driver's License & Vehicle Requirements

For Canadian Citizens

Required Documents:

• Original valid Canadian passport
• Proof of Social Security Number (if applicable)
• Two proofs of North Carolina residential address

Testing Requirements:

• Written test required for Canadian citizens
• Road test required - NC does not recognize foreign licenses
• Vision screening required

Important Notes:

• 60-day limit to get North Carolina license after residency
• REAL ID required by May 7, 2025 for air travel
• Both written and road tests required for Canadians

Vehicle Registration

• Register within 30 days of establishing residency
• Safety inspection required annually
• Emissions testing required in certain counties
• North Carolina insurance required for registration

Tax & Residency Considerations

North Carolina State Tax Benefits

• **Low flat income tax** 4.25% in 2025, dropping to 3.99% in 2026
• **No inheritance tax**
• **Moderate property taxes** (0.63% effective rate)
• **Reasonable sales tax** 4.75% state rate

Establishing North Carolina Tax Residency

North Carolina residency is based on domicile:

• Domiciled in North Carolina at any time during tax year
• Intent to make NC your permanent home
• Physical presence supporting domicile intent

Documentation to Establish Residency

• North Carolina driver's license and voter registration
• Bank accounts and utility bills in North Carolina
• Employment or business activities in North Carolina
• Professional licenses, club memberships

US Federal Tax Implications for Canadians

Important: Under the Substantial Presence Test, you may be considered a U.S. resident for tax purposes.
Recommendation: Consult a cross-border tax professional.

Healthcare Considerations

Insurance Options

• North Carolina has no public health insurance for non-citizens
• Travel insurance strongly recommended
• Consider US health insurance if staying permanently
• Quality medical facilities in Charlotte, Raleigh, Asheville

Prescription Medications

• Bring adequate supply from Canada
• Understand prescription transfer requirements
• US prices often higher than Canadian prices
• Research pharmacy options and discount programs

Special Considerations for Snowbirds

Maintaining Canadian Ties

• Keep principal residence in Canada
• Monitor days in U.S. for tax reasons
• Maintain Canadian insurance & banking relationships
• NC domicile-based residency requires careful planning

Property Considerations

• Affordable property values compared to coastal states
• Homestead exemption available ($35,000)
• Impact on Canada's principal residence exemption
• Hurricane insurance needed for coastal areas

Climate & Lifestyle Benefits

• Four distinct seasons with mild winters
• Mountains to coast - diverse geography
• Lower cost of living than northeastern states
• Growing Canadian expat community

Travel Documentation

• Ensure passport validity (6+ months remaining)
• Consider Global Entry/NEXUS for easier border crossings
• Track intent and domicile establishment carefully
• No Enhanced Driver's License available in NC

Cost of Living Advantage

North Carolina offers excellent value with low taxes, affordable housing, and quality healthcare. The state provides mountain and coastal options within reasonable distances.

Key Contacts & Resources