Tags: Retirement | taxes | retirees | south carolina

Taxes for Retirees in South Carolina

By    |   Thursday, 31 Dec 2015 06:22 PM

If you're considering retirement in South Carolina but are worried about taxes, don't be. The Palmetto State is one of the best states in the country to retire when it comes to taxes. Not only does South Carolina have the ninth lowest tax burden in the nation, it also doesn't penalize retirees with a state social security tax and offers some pension tax exemptions.

"Residents 65 and over have an exemption for the first $15,000 of income, of which up to $10,000 may be retirement income, including military pensions. People up to age 65 can deduct up to $3000 of qualified pension income. Most disability services are not taxable," TopRetirements.com said about South Carolina's exemptions for retirement income.

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The state also offers a "homestead tax exemption" to some people over 65 that excludes up to $50,000 of the market value of their home from property taxes. Also, couples filing jointly that are both "65 or older you do not need to file a SC tax return unless your gross income is greater than the federal gross income filing requirement plus $30,000," TopRetirements.com added.

After your death, your loved ones will not be burdened by estate or inheritance taxes in South Carolina, beyond what is collected by the federal government.

Here are some other facts about taxes in South Carolina:

Income Tax: Partial retirees still earning income are subject to the state's income tax, which ranges from 3 percent to 7 percent but with the highest bracket beginning at just $14,400. This is quite low when compared to national averages, so residents earning a sizable income will be taxed in this department.

Sales Tax: South Carolina's state sales tax is 6 percent, which is also relatively high (the highest state sales tax is in California at a rate of 7.5 percent for instance, while the lowest is nothing, which is how five states operate. Other low-sales tax states include Wyoming and South Dakota, where the state sales tax is set at 4 percent. Additionally, local communities in South Carolina can impose an additional sales tax of up to 2.5 percent.

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If you're considering retirement in South Carolina but are worried about taxes, don't be. The Palmetto State is one of the best states in the country to retire when it comes to taxes.
taxes, retirees, south carolina
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2015-22-31
Thursday, 31 Dec 2015 06:22 PM
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