Military Retirement Pay Tax Exemption
100% exemption of military retirement pay from South Carolina state income tax with no age restriction or income cap.
State BenefitSouth CarolinaTax Benefits
Verified September 30, 2026 against scdva.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
- September 30, 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
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.
Verified information & sources
- Last verified
- September 30, 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.
How VetUnlock verifies benefitsFrequently 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$3,000+/yearComplete exemption from property taxes on primary residence plus up to 5 acres for 100% P&T disabled veterans.
- Disabled Veteran Vehicle Tax ExemptionSeveral hundred dollars/yearProperty tax exemption on up to two private passenger vehicles for 100% P&T disabled veterans.
- Homestead Exemption (Age/Disability-Based)~$600/year$50,000 exemption on fair market value of primary residence for veterans age 65+ or totally/permanently disabled.