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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.
You may be qualified for the Homestead Exemption if you: ARE at least 65 years of age on or before December 31st, preceding the tax year in which you wish to claim the exemption.
?What is the Homestead Exemption benefit? The Homestead Exemption is a complete exemption of taxes on the first $50,000 in Fair Market Value of your Legal Residence for homeowners over age 65, totally and permanently disabled, or legally blind.
MyDORWAY is the fastest, easiest way to apply for Property Tax Exemptions. If you apply for a Property Tax Exemption on MyDORWAY, you do not need to submit a paper copy of the PT-401-I. Visit MyDORWAY.dor.sc.gov to get started.
The Homestead Exemption is a complete exemption of taxes on the first $50,000 in Fair Market Value of your Legal Residence for homeowners over age 65, totally and permanently disabled, or legally blind.
Legislators voted to reduce the top Income Tax rate from 7% to 6.5% beginning in 2022. The rate of 6.5% could be reduced in the future if certain general fund growth tests are met. In November, the SCDOR updated its Withholding Tax Tables for 2023, taking the tax cut into account.
South Carolina also has no gift tax. The federal gift tax kicks in for gifts of more than $16,000 in 2022 and $17,000 in 2023. A gift over that amount to one person in a year will count against your lifetime exemption of $12.92 million.
South Carolina is tax-friendly toward retirees. Social Security income is not taxed. Withdrawals from retirement accounts are partially taxed. Wages are taxed at normal rates, and your marginal state tax rate is 4.00%.