🌴 COUNTRY A South Carolina VS ☀️ COUNTRY B Florida

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 is 5% (two brackets: 0% to $18,050 taxable; 5% above), which is competitive in the South. For comparison: Georgia is 5.19% flat with a $65,000 retirement exclusion for 65+; 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 $2,098/year by moving to Florida. At $150,000, you'd save $5,848/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.