One of the first concerns for those deciding to move to Raleigh is how much they will pay in taxes, in addition to their monthly mortgage.

Raleigh residents bear both the Wake County tax rate and the city of Raleigh's own tax rate. For the 2025-2026 fiscal year, the Raleigh city tax rate is $0.355 per $100 of assessed value, while the Wake County rate is $0.5171, totaling approximately $0.8721 per $100, which translates to an effective tax rate of about 0.87%. If we consider the median home price in Raleigh to be around $430,000, the annual property tax would be roughly $3,700 to $3,800.

North Carolina has a homestead exemption program for low-income homeowners who are 65 years or older or disabled. If income criteria are met, homeowners can deduct the greater of $25,000 or 50% of the assessed value from their property taxes, so families moving in with parents should definitely check this out.

Insurance premiums can range from $1,500 to $1,900 annually, reflecting the potential for flooding from hurricane remnants, even though Raleigh is an inland city. If the property is located in a flood risk area, it's important to consider whether to purchase separate flood insurance.

For maintenance costs, applying a standard of 1-2% of the home price would mean an annual budget of about $4,300 to $8,600 for a $430,000 home, with a reasonable estimate around $6,450 at the median of 1.5%.

When combining property taxes, insurance, and maintenance costs, the total annual ownership cost is approximately $11,700 to $12,000. Neighboring Durham County or Orange County often have slightly higher tax rates than Wake County, making Raleigh and Wake County relatively favorable options if commuting conditions are similar.

The first concern that comes to mind is whether the total amount, considering taxes, is truly manageable. While Raleigh's property tax rate is lower compared to other metropolitan areas, the rapid increase in home prices means it's wise to keep an eye on how tax amounts change during annual reassessments.