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South Carolina Retirement Taxes

pet friendly retirement communityThere are so many reasons why retirees love South Carolina.

The state is a popular retirement destination thanks to its amazing weather, culture, and outdoor leisure activities. But is South Carolina tax-friendly for retirees?

South Carolina is very tax friendly for retirees. Social Security benefits are not taxed, and while retirement income is partially taxed, individuals aged 65 and older can claim up to $10,000 in retirement income deductions from pensions, 401(k)s, IRAs, and other retirement accounts. They can also claim up to $15,000 in deductions from South Carolina’s state income tax.

However, if your retirement income is over the $10,000 deduction, it is subject to South Carolina’s regular income tax rates. These rates range from 0% to a maximum of 7% for the highest income tax bracket. Even so, compared to other states, South Carolina’s taxes for retirees are much more attractive.

What is South Carolina’s Homestead Exemption Benefit?

The Homestead Exemption is another advantage of South Carolina’s retirement taxes. This is an exemption of taxes on the first $50,000 of value of your home for those 65 and older. You can contact the County Auditor’s Office in your county to apply for this benefit.

Is It Cheaper to Retire in NC or SC?

South Carolina typically offers a lower cost of living and more favorable tax benefits for retirees than North Carolina does - including significant deductions on retirement income and property tax breaks for seniors. While North Carolina has a moderate cost of living and is also relatively tax-friendly with a lower sales tax rate, South Carolina ends up being the cheaper state to retire in.

Should You Consider Moving to a Retirement Community in South Carolina?

Because of South Carolina’s retirement tax friendliness and low cost of living, you can stretch your dollar here the farthest. You may be surprised to learn that, even if you own your home, a retirement community may be the least expensive option. If you’d like to learn more, including pricing information on an Acts retirement community in South Carolina, explore our premier Park Pointe Village community in Rock Hill.

Park Pointe Village
3025 Chesbrough Blvd,
Rock Hill, South Carolina 29732

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