Considering Relocation to South Carolina and Lake Murray?
An Overview of Taxes in South Carolina
Sales Taxes
State Sales Tax: 6% (prescription drugs and unprepared food items exempt); 25 counties impose an additional 1% local option sales tax; a number of counties impose a 2% sales tax. Seniors 85 and older pay 5%.
Gasoline Tax: 16.8 cents/gallon
Diesel Fuel Tax: 16.8 cents/gallon
Cigarette Tax: 57 cents/pack of 20
Personal Income Taxes
Tax Rate Range: Low – 3.0%; High – 7%; No tax on the first $2,630 of taxable income in tax year 2007.
Income Brackets: ** Lowest – $2,740; Highest – $13,701
Number of Brackets: 6
Personal Exemptions: * Single – $3,700; Married – $7,400; Dependents – $3,700
Standard Deduction: Single – $5,700; Married filing jointly – $11,400
Medical/Dental Deduction: Federal amount
Federal Income Tax Deduction: None
Retirement Income Taxes: Retirement income is taxed. Social Security is exempt. Under age 65, $3,000 in pension income is exempt. If you are 65 or older you may exempt $15,000 of retirement income. You can take this deduction for income received from any qualified retirement plan. If both spouses receive retirement income, each spouse is entitled to an individual deduction. The $15,000 deduction must be offset by any other retirement deduction that is claimed. A surviving spouse may continue to tacke a retirement deduction on behalf of the deceased spouse. Some taxpayers age 65 and older may not have to file a tax return if they meet certain conditions. For more information,
click here.
Retired Military Pay: Retirees with 20 or more years of active duty can deduct up to $3,000 annually until age 65 and up to $10,000 per year after age 65. This deduction extends to the surviving spouse. Pension or retirement income received for time served in the National Guard or Reserve components is not taxable. Survivor benefits are taxed following federal tax rules.
Military Disability Retired Pay: Retirees who entered the military before Sept. 24, 1975, and members receiving disability retirements based on combat injuries or who could receive disability payments from the VA are covered by laws giving disability broad exemption from federal income tax. Most military retired pay based on service-related disabilities also is free from federal income tax, but there is no guarantee of total protection.
VA Disability Dependency and Indemnity Compensation: VA benefits are not taxable because they generally are for disabilities and are not subject to federal or state taxes.
Military SBP/SSBP/RCSBP/RSFPP: Generally subject to state taxes for those states with income tax. Check with state department of revenue office.
Property Taxes
Property tax is assessed and collected by local governments. Both real and personal property are subject to tax. The market value of a legal residence and up to 5 acres of surrounding land is assessed at 4%. For homeowners 65 and older, the state’s homestead exemption allows the first $50,000 of their property’s fair market value to be exempt from local property taxes. South Carolina imposes a casual excise tax of 5% on the fair market value of all motor vehicles, motorcycles, boats, motors and airplanes transferred between individuals. For more information,
click here.
Inheritance and Estate Taxes
There is no inheritance tax or estate tax..
For further information, visit the
South Carolina Department of Revenue site or 800-763-1295. If you are planning to move to South Carolina,
this link will provide you with some helpful information.
* State allows personal exemption or standard deductions as provided in the Internal Revenue Code.
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| Call Mel Coker to Buy at Lake Murray |
READY TO MOVE TO Lake Murray?
(a lifelong South Carolina resident / Realtor)
RE/MAX Metro Associates |
Columbia, SC
(803) 223-6214
Internet |
email
