SC Among Most Tax-Friendly States for Retirees

Kiplinger magazine has listed South Carolina among the 10 most tax-friendly states for retirees in its September issue.

“The state does not tax Social Security benefits and provides a generous retirement-income deduction when calculating state income tax. State income tax rates are reasonable, and property taxes are very low. Taxes are based on 4% of the market value of the home and senior homeowners qualify for a homestead exemption,” Kiplinger said in summarizing South Carolina’s tax policy toward people age 65 and over.

Some other points noted by Kiplinger include:

– People 65 and over may deduct up to $10,000 in qualifying retirement income, including public employee retirement plans, Keogh plans, IRA distributions and military retirement.

– People 65 and over can take a senior deduction of $15,000, for single filers, or $30,000, for married couples filing jointly. However, the $15,000 deduction must be offset by the amount taken with the retirement-income deduction.

– Retired military personnel 65 and older can deduct up to $10,000 of military retirement benefits.

Staff Report-Sept. 7, 2012

Photo by ThinkStock

 

Browse Some Charleston Areas

Folly Beach

Folly Beach is definitely the life of the party. Locals call it simply “Folly” or “The Edge” (referring to Folly’s nickname “Edge of America”) and it’s widely recognized as home to the most laid back beach community on the East Coast. You’ll think Jimmy Buffet must be somewhere having a margarita in this Key West… Read More

Seabrook Island

Seabrook Island has got to be Greater Charleston’s most enigmatic community. It is a true resort community known best for being Kiawah Island’s next door neighbor and is one of the most internationally recognized Islands in South Carolina, yet it’s not even an island, and though it’s a fully guarded and gated community, it’s also… Read More

Summerville

Positioned at the northwestern edge of Greater Charleston along the west side of I-26, Summerville is a cornerstone of the North Area of Greater Charleston, and is the purest example of “small town America” in the South Carolina lowcountry. Known best as Flowertown USA, Summerville boasts stunning public azalea gardens, rolling landscapes, atypical roadways, and… Read More

North Charleston

Even long-time locals are amazed when they are told or reminded that the city of North Charleston did not even exist before 1972.  With the scenic Ashley River on its western border and the sea-going Cooper River on the right, the city has annexed or redeveloped an extraordinary amount of prime real estate to quickly… Read More

See More Charleston Areas