Compare taxes and see how much you save moving from South Carolina to Florida
South Carolina is a growing retirement destination — the Lowcountry, Hilton Head, Myrtle Beach, and Greenville attract thousands of retirees from northern states each year. But South Carolina does tax retirement income, unlike Florida. South Carolina's top income tax rate is 6.5%, heading toward 6% over several years under an ongoing rate reduction plan. Social Security benefits are fully exempt. Retirees aged 65 and older can deduct $15,000 from their retirement income, reducing the taxable amount. After that deduction, pension income, IRA withdrawals, and 401(k) distributions are taxed at progressive rates up to 6.5%. At $75,000 in non-Social Security retirement income, a South Carolina retiree pays approximately $3,500 in state tax while a Florida retiree pays zero. Military retirement pay is fully exempt from South Carolina state income tax. South Carolina and Florida are geographically similar — both coastal, warm, and popular with retirees from the Northeast and Midwest. The key tradeoffs: South Carolina generally has lower property insurance costs than Florida's coastal areas, lower overall cost of living, and distinct seasons. Florida offers zero income tax at all income levels, year-round warmth, and no estate tax. For high-income retirees with substantial pension or IRA income, the income tax difference favours Florida significantly.
SS Exempt, $15K Deduction for 65+
Progressive up to 6.5%; Social Security exempt; $15,000 retirement deduction for 65+
No Income Tax
Zero state income tax on all retirement income sources
At $75,000 income:
Florida saves approximately $3,500/year vs South Carolina at $75K retirement income (excluding Social Security). South Carolina's $15,000 deduction for retirees 65+ reduces the taxable base, but the remaining income faces rates up to 6.5%.
| Income | SC Tax | FL Tax | Savings | 10-Year |
|---|---|---|---|---|
| $50,000 retirement | ~$1,900 | $0 | FL saves ~$1,900/yr | $19,000 |
| $75,000 retirement | ~$3,500 | $0 | FL saves ~$3,500/yr | $35,000 |
| $100,000 retirement | ~$5,100 | $0 | FL saves ~$5,100/yr | $51,000 |
| $150,000 retirement | ~$8,500 | $0 | FL saves ~$8,500/yr | $85,000 |
| $250,000 retirement | ~$15,275 | $0 | FL saves ~$15,275/yr | $152,750 |
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Get Matched With a Retirement Tax CPA →No. South Carolina fully exempts Social Security benefits from state income tax. This applies regardless of your total income. For retirees whose primary income is Social Security, South Carolina and Florida are practically equal on state tax burden. The South Carolina tax disadvantage emerges on pension income, traditional IRA withdrawals, 401(k) distributions, and RMDs — all of which are taxed above the $15,000 retirement deduction.
South Carolina allows retirees aged 65 and older to deduct $15,000 from their retirement income before calculating state income tax. For married couples where both spouses are 65+, each can deduct $15,000, for a combined $30,000 deduction. Retirement income eligible for this deduction includes pensions, IRA and 401(k) withdrawals, and annuities. Social Security is separately exempt. Retirees aged 65 and under receive a smaller deduction of $3,000.
No. South Carolina fully exempts military retirement pay from state income tax. This is separate from the general $15,000 retirement deduction — military retirees get a full exemption on their pension regardless of amount. This makes South Carolina very competitive with Florida for military retirees. Combined with the Social Security exemption, a military retiree drawing mostly pension and SS income faces minimal South Carolina state tax.
South Carolina's top rate of 6.5% (heading toward 6%) is among the higher rates in the South. For comparison: Georgia is 5.39% flat with a $65,000 retirement exclusion; North Carolina is 4.5% flat; Tennessee and Florida are 0%; Texas has no income tax. South Carolina's saving grace is the Social Security exemption, military pension exemption, and the $15,000 deduction — these reduce the effective tax burden for moderate-income retirees substantially.
South Carolina's average effective property tax rate is approximately 0.57% — lower than Florida's ~0.86%. South Carolina also offers a 4% primary residence assessment rate versus a 6% rate for investment properties, which helps retirees in their primary home. For a $300,000 home, South Carolina property tax would be roughly $1,700 versus Florida's roughly $2,600 (before Florida's Homestead Exemption). After Florida's $50,000 Homestead Exemption, the gap narrows. Both states are reasonable on property tax compared to northeastern states.
It depends on your income. At $75,000 in non-Social Security retirement income, you'd save about $3,500/year by moving to Florida. At $150,000, you'd save $8,500/year. However, Florida's property insurance costs ($4,000–$8,000/year) may offset $2,000–$5,000 of that saving depending on where you live. Retirees with military pensions or income primarily from Social Security may find the after-insurance saving is minimal. High-income retirees with large IRAs and pension distributions gain the most from Florida's zero income tax.
No. South Carolina has no state estate tax or inheritance tax. Estates are subject only to the federal estate tax, which exempts the first $13.61 million per individual (2024). This matches Florida, making both states equal for estate planning purposes. Neither state imposes additional state-level taxes on wealth transferred at death.