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State Benefit·South Carolina·🏛️Tax Benefits

Military Retirement Pay Tax Exemption

100% exemption of military retirement pay from South Carolina state income tax with no age restriction or income cap.

Verified May 12, 2026againstscdva.sc.gov

At a glance

Benefit type
Tax Benefits — South Carolina
Who it's for
Veterans
VA rating needed
No rating requirement
Estimated value
Up to 6% savings on retirement pay
Where it applies
South Carolina
Last verified
May 12, 2026

What is Military Retirement Pay Tax Exemption?

Military Retirement Pay Tax Exemption is a South Carolina tax benefits benefit for veterans. 100% exemption of military retirement pay from South Carolina state income tax with no age restriction or income cap. The listed value is Up to 6% savings on retirement pay.

Who qualifies

Veterans
  • Available to any veteran
  • South Carolina residency

How to apply

Apply through the official South Carolina agency.

Open application

Who is eligible

Eligibility

Any military retiree receiving retired pay included in SC taxable income. No age restriction and no earned-income cap.

What Military Retirement Pay Tax Exemption covers

Effective

Tax years after 2021 (Workforce Enhancement and Military Recognition Act), applies to tax year 2022 and forward.

How to apply for Military Retirement Pay Tax Exemption

How to apply

Adjust state tax withholding via myPay (State Withholding section), submit DD Form 2866, or send a written request to DFAS.

Open applicationVerify at official source

Verified information & sources

Last verified: May 12, 2026

Official source: scdva.sc.gov

Compiled and fact-checked against the official source linked above. Benefit rules and dollar amounts change over time — always confirm current details at the official source before applying. A county Veterans Service Officer (VSO) is a free, accredited advocate who can review your eligibility and help you file at no cost.

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Frequently asked questions about Military Retirement Pay Tax Exemption

Who qualifies for Military Retirement Pay Tax Exemption?▾
Military Retirement Pay Tax Exemption is for Veterans; available to any veteran; south carolina residency. See the eligibility details on this page and confirm with the official source before applying.
How much is Military Retirement Pay Tax Exemption worth?▾
The listed value is Up to 6% savings on retirement pay. Amounts can change — confirm the current figure at the official source linked on this page.
How do I apply for Military Retirement Pay Tax Exemption?▾
Apply through the official source linked on this page. A county Veterans Service Officer (VSO) can review your eligibility and help you file at no cost.
Where can I verify Military Retirement Pay Tax Exemption?▾
Benefit rules and dollar amounts change, so always confirm current details at the official source linked on this page. A free, accredited county or state Veterans Service Officer (VSO) can also verify your eligibility and help you apply.

Other South Carolina Tax Benefits

Disabled Veteran Property Tax Exemption

Complete exemption from property taxes on primary residence plus up to 5 acres for 100% P&T disabled veterans.

$3,000+/year

Disabled Veteran Vehicle Tax Exemption

Property tax exemption on up to two private passenger vehicles for 100% P&T disabled veterans.

Several hundred dollars/year

Homestead Exemption (Age/Disability-Based)

$50,000 exemption on fair market value of primary residence for veterans age 65+ or totally/permanently disabled.

~$600/year

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