Military Retirement Pay Tax Exemption
100% exemption of military retirement pay from South Carolina state income tax with no age restriction or income cap.
Who qualifies
- Available to any veteran
- South Carolina residency
How to apply
Up to 6% savings on retirement pay
Apply through the official South Carolina agency.
Open applicationDetails
Eligibility
Any military retiree receiving retired pay included in SC taxable income. No age restriction and no earned-income cap.
Effective
Tax years after 2021 (Workforce Enhancement and Military Recognition Act), applies to tax year 2022 and forward.
How to apply
Adjust state tax withholding via myPay (State Withholding section), submit DD Form 2866, or send a written request to DFAS.
Always confirm current rates and rules with the South Carolina state agency before applying.
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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