Retirement Taxes in South Carolina (2026)
South Carolina taxes income at an effective 6.40%, exempts Social Security entirely, and exempts the first $10,000 of pension income. On our standard retiree profile it ranks 14 of 50 for total state tax burden at $8,443 a year, with property tax at an effective 0.43% and combined sales tax at 7.49%.
Tax is one part of the picture. See the full free report on your move → or look up a county →
South Carolina at a glance
State income tax
6.40%
After a $14,600 standard deduction
Social Security
Fully exempt
State treatment only; federal rules still apply
401(k) / IRA withdrawals
First $15,000 exempt
Pension income
First $10,000 exempt
Effective property tax
0.43%
$2,170 on a $500,000 home
Combined sales tax
7.49%
State plus average local rate
Homeowners insurance
$1,571/yr
Average annual HO-3 premium
Cost index (goods & services)
97.4
US average = 100, BEA 2024. Housing excluded.
Estate / inheritance tax
Neither
Cost index compares goods and services only — housing is excluded because it's captured separately in property tax. Source: BEA Regional Price Parities, 2024, US average = 100.
Rankings and dollar figures on this page use one documented profile: $126,000 of gross retirement income ($36,000 Social Security, $45,000 in 401(k)/IRA withdrawals, $18,000 pension, $12,000 dividends, $15,000 part-time earnings), a $650,000 home, and $32,000 of taxable annual spending. It is the same profile the calculator loads with, so you can reproduce every number here.
Where South Carolina ranks
South Carolina places 14 of 50 states by total state tax burden on the standard profile — $8,443 a year against a $10,910 50-state average, or 23% below the 50-state average.
- State income tax rate6.40%48% above the 50-state average
- Effective property tax rate0.43%52% below the 50-state average
- Combined sales tax rate7.49%13% above the 50-state average
- Homeowners insurance premium$1,571/yr5% above the 50-state average
- Cost of goods & services97.43% below the 50-state average
Comparisons are unweighted averages across the 50 states on our standard retiree profile, not population-weighted national figures.
How it compares to its peers
The states closest to South Carolina on total burden, using the same profile:
Hawaii
Rank 12 · $8,269/yr
$175 less than South Carolina
Kentucky
Rank 13 · $8,421/yr
$22 less than South Carolina
South Dakota
Rank 15 · $9,196/yr
$753 more than South Carolina
What this means for a move
On the standard profile, 38% of the $8,443 annual burden in South Carolina is income tax — $3,226, against $2,821 of property tax and $2,397 of sales tax. Raising or lowering taxable withdrawals changes the 6.40% income tax line directly, so the total is sensitive to how much you draw each year.
Every $100,000 of home value costs $434 a year in South Carolina property tax, so a $500,000 house carries roughly $2,170. Average homeowners insurance runs $1,571 a year, 5% above the 50-state average. Goods and services price 2.6% below the US average (BEA 2024, housing excluded), which sits on top of the tax figure rather than inside it.
South Carolina retirement tax FAQ
Does South Carolina tax Social Security benefits?
No. South Carolina does not tax Social Security benefits at the state level. Federal taxation of benefits still applies based on your combined income.
How does South Carolina tax 401(k) withdrawals and pension income?
401(k) and IRA withdrawals: first $15,000 exempt. Pension income: first $10,000 exempt. Anything left over is taxed at an effective 6.40%.
What is the property tax rate in South Carolina?
South Carolina's effective property tax rate is 0.43% of home value — 52% below the 50-state average. On a $500,000 home that is about $2,170 a year.
Where does South Carolina rank for retirement taxes?
South Carolina ranks 14 of 50 states, lowest total burden first, on our standard retiree profile: $8,443 a year in combined state income, property and sales tax, versus a $10,910 unweighted average across the 50 states.
Compare South Carolina to your current state
Enter your own income, home value and spending to see what the move actually changes.
Compare South Carolina to your current state