No. South Carolina does not tax Social Security benefits. Other retirement income is taxable, but the SC Department of Revenue lists a retirement income deduction of up to $10,000 a year at age 65 and older, plus an age-65 deduction of up to $15,000 that is reduced by the retirement deduction.
Last updated: October 2026
Is Social Security taxed in South Carolina?
No, Social Security benefits are not taxed by South Carolina. The SCDOR retiree tax tips page confirms this (as of October 2026). Federal tax rules on Social Security still apply, so talk with your tax preparer about your federal return.
How are pensions and IRA withdrawals taxed in South Carolina?
Pensions, IRA and 401(k) withdrawals are generally included in South Carolina income, but SCDOR lists two deductions that reduce what is taxed (as of October 2026):
- A retirement income deduction of up to $10,000 a year starting at age 65
- An age-65 deduction of up to $15,000, reduced by any retirement deduction you claim
Military retirees and some other groups have additional rules. Your tax preparer can tell you how they apply to you.
What property tax breaks do retirees get in South Carolina?
Homeowners 65 and older can get a homestead exemption on their legal residence. The SCDOR property tax exemptions page lists the statutory exemption as the first $50,000 of fair market value, and you need to have been a South Carolina resident for a full year to qualify (as of October 2026).
That is on top of the 4% assessment ratio for a primary residence, explained in our 4% vs 6% guide.
Is South Carolina a tax-friendly state for retirees?
For many retirees, yes, because Social Security is exempt and income deductions start at 65. Whether it beats your current state depends on your income mix, property taxes and insurance. Our retiring to Myrtle Beach guide and cost of living guide put the full picture together.
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When should you establish South Carolina residency?
The homestead exemption needs a full year of residency, and the 4% rate needs the home to be your legal residence. If you are planning a move, ask your tax adviser about timing your closing, license and voter registration so you start the clock early.
Frequently Asked Questions
Does South Carolina tax 401(k) withdrawals?
Yes, generally, but retirees 65 and older can use the retirement income deduction of up to $10,000 per SCDOR.
At what age is retirement income deductible in SC?
SCDOR lists the $10,000 retirement deduction starting at age 65. Check SCDOR for rules that apply before 65.
Do retirees pay property tax in South Carolina?
Yes, but homeowners 65 and older can get the homestead exemption on the first $50,000 of value, and a primary residence is assessed at 4%.
Is South Carolina better than North Carolina for retirees' taxes?
We only cover South Carolina here. Compare your own numbers with a tax adviser.
How Our Team Can Help
If you are retiring to the Grand Strand, we can show you homes that fit both your lifestyle and the tax plan you build with your adviser. Call or message the Secure Home Finder Team and we will walk you through it, then send you homes that fit.
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