South Carolina retirement taxes in 2026: what retirees pay
South Carolina taxes income at up to 5.21% in 2026. Three example retirees, worked through South Carolina's rules.
Monte Climb4 min readSouth Carolina taxes income in brackets, but retirees usually find the rules kinder than that sounds. Social Security isn't taxed by the state. On top of that, each person can deduct part of their retirement income, and the cap is higher once you reach the older age threshold. People past that age also get a second, broader deduction that can apply to any kind of income. That second deduction is reduced by whatever retirement deduction was already taken. The figures below show how these pieces combine.
South Carolina retirement taxes at a glance (2026)
| State income tax | 2 brackets from 1.99% to 5.21% 1 |
| Social Security | Not taxed 1 |
| Pensions and IRA withdrawals | Partly deducted 4 |
South Carolina income tax rates for 2026
Single filers 1 (the brackets rise with inflation each year):
| Taxable income | Rate |
|---|---|
| $0 to $30,000 | 1.99% |
| $30,000 and up | 5.21% |
How South Carolina treats retirement income
Each person 65 or older may deduct up to $10,000 of retirement income ($3,000 under 65), and a person 65 or older also gets a $15,000 deduction against any income, less the retirement deduction taken. 4
What three retirees would pay in South Carolina
These are estimates from Monte Climb's planner on 2026 law, for three example households. They start, as the app does, from federal taxable income: the 2026 standard deduction plus the extra amount at 65 5, the taxable part of Social Security 6 and the senior deduction 7. Those federal deductions are already taken off, and most states allow less of their own, so South Carolina's real bill can be higher than shown.
| Single, 67 | Couple, both 67 | Couple, both 62 | |
|---|---|---|---|
| Social Security | $24,000 | $42,000 | $0 |
| Pension | $0 | $24,000 | $0 |
| IRA withdrawals | $30,000 | $36,000 | $70,000 |
| Interest and dividends | $0 | $4,000 | $6,000 |
| Federal taxable income | $17,150 | $52,200 | $43,800 |
| South Carolina subtractions | $26,300 | $65,700 | $6,000 |
| Income South Carolina taxes | $355 | $9,373 | $40,000 |
| South Carolina tax | $7 | $187 | $1,118 |
| Share of total income | 0% | 0.2% | 1.5% |
- A single retiree, 67 with $54,000 of income would owe about $7 to South Carolina, after $15,000 of retirement income is excluded and $11,300 of taxable Social Security is left out.
- A married couple, both 67 with $106,000 of income would owe about $187 to South Carolina, after $30,000 of retirement income is excluded and $35,700 of taxable Social Security is left out.
- A married couple, both 62, before Social Security with $76,000 of income would owe about $1,118 to South Carolina, after $6,000 of retirement income is excluded.
The same couple next door
The married couple, both 67, with $106,000 of income, in South Carolina and the states around it:
| State | State tax |
|---|---|
| South Carolina | $187 |
| Georgia | $0 |
| North Carolina | $658 |
Every figure here starts from federal taxable income, as above, so a state whose own deductions are smaller can tax more than shown.
What these estimates leave out
- South Carolina's own standard deduction, exemptions and credits: the estimate starts from federal taxable income instead, which takes off the larger federal deductions.
- City income taxes, and capital gains rules a state applies apart from its rate.
- Rules for military and public-employee pensions that some states treat separately.
What this means for your plan
In South Carolina, a lot depends on age and on what kind of income you have. Social Security stays out of state tax. The retirement deduction applies to each person separately, so a couple can claim it twice. The broader deduction for older residents covers income the retirement deduction might not reach. Because the two deductions interact, the total amount you can deduct may not be simply the two added together. Monte Climb runs these South Carolina rules on your own plan, so you can see how your mix of income and your ages play out year by year.
Sources
- South Carolina income tax for 2026 (Monte Climb's audit grades it high)
- South Carolina: a further official source for the 2026 tables
- South Carolina: a further official source for the 2026 tables
- South Carolina's retirement-income rule: S.C. Code §12-6-1170
- Rev. Proc. 2025-32 §4.14(1) and §4.14(3): the 2026 standard deduction and the additional amount at 65
- IRC §86 and IRS Publication 915: how much of Social Security is taxable (thresholds set by statute, not indexed)
- P.L. 119-21 (One Big Beautiful Bill Act) §70103: the $6,000 deduction for each person 65 or older, 2025–2028
Figures computed by code from Monte Climb's 2026 state tables (snapshot f024e17). An illustration, not tax advice.
Frequently asked questions
Does South Carolina tax Social Security?
In 2026, Social Security is not taxed in South Carolina.
What is South Carolina's income tax rate in 2026?
South Carolina has 2 brackets from 1.99% to 5.21% for 2026.
How much state tax would a retired couple pay in South Carolina?
A married couple, both 67, with $106,000 of Social Security, pension and IRA income would owe about $187 to South Carolina in 2026, by Monte Climb's estimate.
Part of Retirement taxes by state (2026).
When can you actually retire?
Three numbers. We run your savings through 1,000 simulated futures, the same engine behind the app, and give you one clear answer.
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