Military Retirement Pay Tax Exemption
100% exemption of military retirement pay from South Carolina state income tax with no age restriction or income cap.
Apply now
Apply directly through the official South Carolina agency.
About this benefit
Eligibility
Any military retiree receiving retired pay included in SC taxable income. Also available to surviving spouses receiving the retiree's military retirement income. No age restriction and no earned-income cap.
Effective
Tax years after 2021 (Workforce Enhancement and Military Recognition Act).
How to apply
Adjust state tax withholding via myPay or DD Form 2866.
Verified against official source
Last checked 2026-05-05 against scdva.sc.gov. 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
Exemption from property tax on up to two vehicles and registration fees 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
See every benefit you qualify for in South Carolina
Get a personalized list of federal, state, and local veteran benefits based on your service history, disability rating, and South Carolina residency — in under 2 minutes.
Find My South Carolina Benefits