As a fiduciary financial advisor in North Carolina, Holland Capital helps you plan retirement income around the state’s tax rules, manage your investments to a written plan and coordinate the decisions that connect them. We work with clients across North Carolina by video and phone, and meet in person by appointment at our Charlotte office or at selected meeting centers.

Some of the rules that affect your retirement are set in Raleigh, not Washington.

North Carolina decides which retirement income it taxes and at what rate. It also decides who qualifies for property tax relief after 65. More than a decade ago, it stopped taxing estates at death.

Those rules can affect which account you draw from first, how a pension is taxed and what your heirs may owe.

How North Carolina Taxes Retirement Income

North Carolina has one flat income tax rate. For 2026 it is 3.99%. The North Carolina Department of Revenue publishes the rate. Wages, IRA and 401(k) withdrawals, private pensions and investment gains are all taxed at that rate.

Social Security is the main exception. North Carolina does not tax Social Security benefits.

Two groups of retirees have a further exception:

  • If you had at least five years of service in a North Carolina state or local retirement system, or in a federal or military retirement system, by August 12, 1989, those retirement benefits are generally not taxed by North Carolina. This comes from the Bailey court settlement.
  • Military retirement pay can be deducted if you served at least 20 years or were medically retired.

Because some income is taxed and some is not, the order in which you draw from each source can change your tax bill. Our retirement planning page shows how that order fits into the rest of a plan.

Property Tax Relief After 65

North Carolina offers three programs that can lower the property tax on your home. You apply through your county, usually by June 1.

  • Elderly or disabled homestead exclusion. If you are 65 or older, or totally and permanently disabled, and your income is under the state limit, part of your home’s value can be excluded from property tax. The limit for applications due June 1, 2027 is $39,900.
  • Circuit breaker deferment. If you have lived in the home at least five years, property tax above a set share of your income can be deferred. The last three years of deferred tax come due, with interest, when the home is sold or is no longer your residence.
  • Disabled veteran exclusion. Up to the first $45,000 of the home’s value is excluded for qualifying veterans with a permanent service-connected disability, with no income limit.

These programs are aimed at homeowners with modest income. If your income is higher, the question may instead be whether the house still fits the plan and what a sale would free up.

No Estate or Inheritance Tax

North Carolina repealed its estate tax for deaths from 2013 on. It has had no inheritance tax since 1999. Federal estate tax can still apply to large estates.

That leaves income tax as the main state tax your heirs are likely to face, for example on a traditional IRA they inherit. Our estate and wealth transfer planning page covers how to plan for it.

How We Work Across North Carolina

Holland Capital Management is an independent registered investment adviser and a fiduciary. M. Chad Holland, CFA, CFP® works directly with clients and is responsible for the planning and advice.

We are based in Charlotte at 15720 Brixham Hill Avenue. Most of our work with clients happens by video or phone, wherever you live in the state. When meeting in person makes sense, we can meet by appointment at our office or at selected meeting centers.

The plan comes first. Then we manage the investments to it through investment management and make tax decisions with tax-efficient investing in mind.

The first conversation is free. If there is work worth doing after that, we will define the scope and cost before you decide whether to move forward.

North Carolina Communities We Serve

The Charlotte Area

Hickory and the Foothills

The Triad

The Triangle

The Coast

Eastern North Carolina

The Mountains

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Frequently Asked Questions

Does North Carolina Tax My State or Federal Pension?

It depends on when you started. If you had five years of creditable service by August 12, 1989, your North Carolina, federal or military pension is generally excluded under the Bailey settlement. Otherwise, the pension is taxed at the state’s flat rate.

If you roll Bailey-protected money into an ordinary IRA, it can lose that protection, so it is worth checking before anything moves.

What Does a Fiduciary Financial Advisor Do Differently for North Carolina Retirees?

The duty is the same everywhere. The advice has to serve you. In North Carolina, that affects specific decisions. For example, Social Security is not taxed while IRA withdrawals are, and a pension rollover may affect Bailey protection. Holland Capital acts as a fiduciary when providing financial planning and investment advice.

When a recommendation would also raise what we are paid, such as moving a rollover into an account we manage, we tell you before you decide.

Can I Work with a Charlotte Fiduciary Financial Advisor If I Live Elsewhere in North Carolina?

Yes. Most of our planning meetings are by video or phone, so you do not need to live near Charlotte for the work to fit.

When you would like to meet in person, the city page for your area names the meeting center we use, and our Charlotte office is available by appointment.

Photo: Will Thomas / Wikimedia Commons / CC BY-SA 3.0, cropped.