SC · Tax Year 2026
How South Carolina taxes Social Security, pensions, 401(k)/IRA withdrawals, and military retirement pay in 2026.
Retirement deduction $3,000 under age 65/$10,000 age 65+; military fully exempt
Age 65+ combined general/retirement relief generally up to $15,000 per person
Additional Notes
Do not add $10,000 and $15,000 as separate full deductions
Does South Carolina tax Social Security benefits?
No. South Carolina does not tax Social Security retirement benefits.
Does South Carolina tax pension income?
Partially. South Carolina provides exemptions for certain types of pension income — often public, government, or military pensions — while private pensions may be partially or fully taxable. See eligibility details above.
Does South Carolina tax 401(k) and IRA withdrawals?
Yes, traditional 401(k) and IRA withdrawals are generally taxable in South Carolina. However, exclusions or credits may apply depending on your age and income — review the details above.
Is South Carolina a tax-friendly state for retirees?
It depends on your income mix. South Carolina offers some retirement income relief, but the rules vary by income type and eligibility. Review the details above and consider consulting a tax professional for your specific situation.
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Data Source
Official South Carolina state tax authority guidance. Tax year 2026. Some annually indexed thresholds may not yet be finalized — confirm with the state revenue department before filing.
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Data reflects tax year 2026 rules sourced from official South Carolina state tax authorities. This page is for informational purposes only — always confirm current rules with the state revenue department or a qualified tax professional before making financial or relocation decisions.