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

South Carolina does not tax Social Security retirement benefits. It also provides a $15,000 taxable income deduction for seniors receiving any other type of retirement income. The state has some of the lowest property taxes in the country.

Qualified retirement income includes: 401, 403, 408, 457. Public Employee Retirement Plans of Federal, State and local governments. Individual retirement plans. Keogh Plans.

Individual Income Tax rates range from 0% to a top rate of 7% on taxable income for tax years 2021 ​and prior and from 0% to a top rate of 6.5% on taxable i​ncome for tax year 2022.

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%.

65 years of age, or. declared totally and permanently disabled by a state or federal agency having the authority to make such a declaration, or. legally blind as certified by a licensed ophthalmologist.

Tax-exempt goods Examples include most non-prepared food items, prescription drugs, and medical supplies. We recommend businesses review the laws and rules put forth by the South Carolina Department of Revenue to stay up to date on which goods are taxable and which are exempt, and under what conditions.

Like the federal income tax, the South Carolina state income tax is progressive, meaning the rate of taxation increases as taxable income increases. In 2023, the South Carolina state income tax rates range from 0% to 6.5%.