What You Need to Know About South Carolina Taxes and Retirement

At what age do South Carolinians stop paying property taxes?

Residents of South Carolina may be exempt from paying a portion of property taxes for the following criteria: resident of the state for a full calendar year and either over 65 years of age or permanently disabled or legally blind.

If so, you are eligible for a Homestead Exemption of $50,000 from the value of your home for tax purposes.

What taxes do retirees pay in South Carolina?

South Carolina is known for having one of the lowest property tax rates in the United States.

Social Security retirement benefits are not taxed in South Carolina. Additionally, retirement income from other sources benefits from a $15,000 taxable income deduction.

What is the income tax rate for South Carolina?

South Carolina's state income tax rates range from 0% to 7%. Retirees receive a deduction for some retirement income. There is also an earned income tax credit and a credit to offset nursing home costs.

Who qualifies for a 4% property tax rate in South Carolina?

To qualify for the special 4% property tax assessment ratio, the owner of the property must have actually owned and occupied the residence as his legal residence and been occupying that address for some period during the applicable tax year.

Only an owner-occupant is eligible to apply for the 4% special assessment.

The average effective property tax rate in South Carolina is only 0.57%. However, retirees who are legal residents of South Carolina for one preceding tax year qualify for a property tax exemption known as the Homestead Tax Exemption. This tax exemption is available to South Carolina property owners over the age of 65.

So, with the Homestead Tax Exemption, the first $50,000 of your home is exempt from municipal, county, school, and real property taxes. To receive this exemption, you must apply at your county auditor's office.

Other South Carolina Tax Breaks for Seniors

South Carolina taxpayers ages 65 and older do not need to file a state income tax return in most cases. If your gross income is less than the federal gross income filing requirement, you shouldn't be required to file a SC state return. In addition, Social Security benefits are not taxed by the state of South Carolina.

Overall, Kiplinger rates South Carolina as a state tax-friendly state for retirees. For more information on tax breaks that senior residents may be eligible for, visit the South Carolina Department of Revenue website.

What Additional Taxes are collected in South Carolina?

South Carolina's state Sales Tax rate: is 6%. Local sales tax rates vary. Some municipalities impose additions to the state sales tax.

South Carolina Excise Taxes: The state collects sales tax on the sale or lease of a motor vehicle. The amount is 5% of the purchase price, up to $300 per vehicle purchased or leased.

Additional South Carolina Retirement Resources

When you are ready to embark on this next exciting chapter of your life, the following resources will make your transition a bit easier.

What You Need to Know About the Cost of Living in Charleston, SC
Hospitals, Places of Worship, Community Resources, and Life in the Lowcountry
Your Ultimate Charleston, SC, Relocation Guide
Kiawah Island and Seabrook Island Homeowners Association Perks

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