Taxes in South Carolina
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Property taxes in South Carolina are among the lowest in the nation. The state also offers several tax breaks for retirees. Below, we explain various South Carolina state taxes affecting retirement income, such as sales tax, inheritance tax, and property taxes.
For information regarding taxes in other states, see Retirement Taxes by State.
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South Carolina Tax Rates
|State Sales Tax||6%|
|Avg State/Local Sales Tax||7.44%|
|Gas Tax||$0.28 per gallon|
|Diesel Tax||$0.28 per gallon|
|Cigarette Tax||$0.57 per pack|
|Effective Tax Rate:||7.00%|
|Social Security Tax||Partial|
|Federal Income Tax Deduction:||None|
South Carolina State Taxes Explained
South Carolina Sales Tax
6%. Prescription drugs and unprepared food items and most utilities are exempt. Some South Carolina counties impose an additional sales tax up to 3%. Residents aged 85 or older are exempt from 1% of the state sales tax.
South Carolina Income Taxes
Top rate of 7% (on taxable income over $16,040). Beginning with the 2023 tax year, the top rate will decrease by 0.1%, if state revenue meets certain requirements, until it equals 6%.
South Carolina Property Taxes
South Carolina’s effective real estate tax rate is 0.57%. Homeowners pay an average of $924 for a home valued at $162,300.
Homeowners age 65 and older, can deduct $50,000 of the property’s fair market value from local property taxes through the state’s homestead exemption. This benefit is also available for taxpayers who are totally and permanently disabled or legally blind.
South Carolina Retirement Taxes
Retirement income is taxed in South Carolina, but the state provides exemptions and deductions. Taxpayers age 65 or older can exclude up to $10,000 of retirement income ($3,000 if you’re younger). Those who file a joint return can each claim this exemption.
Residents aged 65 or older can also deduct $15,000 ($30,000 for joint returns) from total taxable income reduced by the amount of excluded retirement income. A surviving spouse may continue to take a retirement deduction on behalf of the deceased spouse. Some taxpayers aged 65 and older may not have to file a tax return if they meet certain conditions.
For tax years after 2021, military retiree pay is 100% exempt from state income tax with no earned-income cap.
South Carolina Estate and Inheritance Taxes
South Carolina has no inheritance tax or estate tax.
For further information, visit the South Carolina Department of Revenue.