State Income Tax
: 3% to 7% State Sales Tax
: 6% Estate Tax/Inheritance Tax
South Carolina extends its Southern hospitality to retirees. The Palmetto State exempts Social Security benefits from state income taxes, and it allows residents who are 65 and older to deduct up to $15,000 per person ($30,000 per couple) of retirement income, regardless of the source. Younger retirees can deduct up to $3,000 of retirement income, including public and private pensions and IRA distributions, from their taxable income. Property taxes are very low. Taxes are based on 4% of the market value of a home, and homeowners 65 and older qualify for a $50,000 homestead exemption. Senior homeowners are also exempt from school taxes on their properties. But sales taxes can be high. The statewide rate is 6%, plus localities can levy an additional tax of up to 3%. Prescription drugs are exempt, but food is not.
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: Kiplinger’s State-by-State Guide to Retiree Taxes 10 Things You Must Know About Social Security 12 Smart Year-End Tax Moves for 2012 The opinions expressed are solely those of the author and do not necessarily reflect the views of Comcast.