Bottom Line Up Front

South Carolina's best veteran tax benefit is the full exemption on military retirement income—saving military retirees $2,000-$4,000+ annually. Governor Henry McMaster signed this into law in May 2022, and it applies to all military retirement pay regardless of age or income, effective for tax years beginning 2022. This puts South Carolina among the top states nationally for military retirees.

For disabled veterans, South Carolina offers a full property tax exemption on your primary residence (up to 5 acres) and two private passenger vehicles if you're 100% permanently and totally disabled. A 100% disabled veteran with a $350,000 home in Columbia saves approximately $2,600-$4,000 annually in property taxes, depending on the county.

South Carolina ranks in the top 15 states nationally for veteran tax benefits. The combination of no military retirement tax, full property tax exemption for 100% disabled veterans, and vehicle sales tax exemptions (up to 2 vehicles for 100% P&T disabled veterans) creates substantial savings. A 100% disabled veteran with $45,000 military retirement saves approximately $6,000-$8,000 annually compared to North Carolina.

The property tax exemption structure is straightforward: if you're 100% P&T disabled (or a former POW, or Medal of Honor recipient), you get full exemption on your home and land (up to 5 acres), plus two vehicles. The exemption became even better in recent years—starting in 2023, disabled veterans can claim the exemption retroactively to the year they became disabled (back to 2022 at earliest), rather than waiting until the following tax year.

Downsides? South Carolina has a 6% sales tax (7%+ with local taxes), which is moderate nationally. Property taxes are relatively low to begin with (average effective rate 0.53%—well below the 0.90% national average), so the exemption saves less in absolute dollars than in high-tax states. Cost of living is rising rapidly in popular areas like Charleston, where median home prices exceed $400,000.

Overall verdict: South Carolina is excellent for military retirees (top 10 nationally) and very good for 100% disabled veterans (top 15 nationally). If you're under 100% disabled and don't have military retirement income, tax benefits are minimal.

Property Tax Benefits

Exemptions by Disability Rating

100% Permanently and Totally Disabled Veterans:

Exemption: 100% of assessed value on primary residence and land (up to 5 acres)
Vehicle exemption: Two private passenger vehicles (full exemption)
Requirements: 100% P&T service-connected disability from VA; South Carolina resident
Annual savings: $2,000-$4,500+ depending on home value and county

If you're rated 100% P&T by the VA, your primary residence (home and up to 5 acres of land) is completely exempt from property taxes. Additionally, you can register two private passenger vehicles completely tax-free. This is one of the best property tax exemptions in the Southeast.

The exemption was recently expanded—as of 2023, disabled veterans can claim the exemption for the full year in which they became disabled, retroactive to 2022. Previously, you had to wait until the following tax year. Surviving spouses can also immediately claim the exemption, regardless of whether the disabled veteran applied for or claimed it before passing away.

Alternative Qualifications for Full Exemption:

Former Prisoner of War (POW): Full exemption on home and 2 vehicles
Medal of Honor recipients: Full exemption on home and 2 vehicles
100% TDIU (Individually Unemployable): Check with your county assessor—some counties may grant exemption even if your combined rating is less than 100%

Under 100% Disabled Veterans:

No specific property tax exemption available
Standard property tax rates apply
Some counties may offer local exemptions or credits—contact your county auditor

South Carolina's property tax exemption is "all or nothing"—full exemption at 100% P&T, or no exemption. Unlike Texas or Oklahoma, which offer partial exemptions at lower ratings (70-90%), South Carolina reserves this benefit exclusively for totally disabled veterans.

How to Apply

Contact your county auditor/assessor
- Charleston County Auditor: (843) 958-4200
- Richland County Auditor: (803) 576-2250
- Greenville County Auditor: (864) 467-7300
- Find your county: sccounties.org
Gather required documents:
- DD Form 214 (Member Copy 4)
- VA award letter showing 100% P&T disability (or POW/MOH documentation)
- South Carolina driver's license or state ID
- Property deed
- Vehicle titles (for vehicle exemption)
File application with county auditor
- Submit application and documentation by mail or in person
- Processing: 4-6 weeks through MyDORWAY (South Carolina Department of Revenue online portal)
- Effective: Retroactive to January 1 of the year you became disabled (if you owned the property that entire year), back to 2022
File with SCDMV for vehicle exemption
- Apply at South Carolina DMV or online at scdmvonline.com
- You must claim vehicle exemption within 2 years of vehicle purchase
- Exemption applies to Infrastructure Maintenance Fee (IMF)—South Carolina's vehicle sales tax

Important: The exemption typically renews automatically once approved for real property. However, you must apply separately for vehicle exemptions on each of your two eligible vehicles. Surviving spouses retain the exemption as long as they remain unmarried.

Property Tax by County

South Carolina has some of the lowest property tax rates nationally (average 0.53% effective rate vs. 0.90% national average). For primary owner-occupied residences, only 4% of assessed value is taxed, making rates extremely low even before exemptions.

County	Median Home Value	Effective Tax Rate	Annual Tax (Non-Exempt)	Savings (100% Disabled)
Charleston	$410,000	0.51%	$2,091	$2,091
Richland (Columbia)	$220,000	0.74%	$1,628	$1,628
Greenville	$285,000	0.65%	$1,853	$1,853
Horry (Myrtle Beach)	$300,000	0.48%	$1,440	$1,440
Lexington	$270,000	0.55%	$1,485	$1,485
Beaufort (Hilton Head)	$480,000	0.46%	$2,208	$2,208
Spartanburg	$200,000	0.68%	$1,360	$1,360
York (Rock Hill, Fort Mill)	$310,000	0.58%	$1,798	$1,798

Example: A 100% disabled veteran with a $410,000 home in Charleston County saves $2,091 in property taxes annually. Over 20 years, that's $41,820 in savings (not accounting for home value appreciation, which increases savings over time).

Vehicle Tax Savings: South Carolina's Infrastructure Maintenance Fee (vehicle sales tax) is 5% capped at $500 maximum. For two vehicles worth $35,000 each, a 100% disabled veteran saves $1,000 ($500 x 2 vehicles).

Retroactive Exemption Benefit

As of 2023, South Carolina allows disabled veterans to claim the exemption retroactively to the year they became disabled, back to 2022 at the earliest. This is a significant improvement.

Example: If you became 100% P&T disabled in March 2023 and owned your home all of 2023, you can claim the full year 2023 exemption when you apply in 2024. Previously, you would have had to pay full property tax for 2023 and only received the exemption starting in 2024.

How to claim retroactively:

File your application as soon as possible after receiving your VA award letter
Indicate the year you became disabled and that you owned the property that entire year
Your county auditor will process the exemption back to January 1 of that year
You may receive a refund for taxes already paid, or a credit toward future taxes

Income Tax Treatment

Military Retirement Pay

State tax: $0—South Carolina fully exempts all military retirement income (effective 2022)
Federal tax: Still taxed federally
Annual savings: $2,000-$4,500+ compared to states that tax military retirement

South Carolina joined the growing list of states that fully exempt military retirement pay as of the 2022 tax year. Governor Henry McMaster signed H. 3247 into law on May 13, 2022, exempting 100% of military retirement income from South Carolina state income tax, with no age restriction, no income cap, and no phase-in period.

Prior to 2022, South Carolina only exempted the first $3,000 of military retirement (or $10,000 for those 65+). The new law eliminates all state tax on military retirement, making South Carolina one of the best states in the nation for military retirees.

Example savings:

O-5 retiree with $60,000 pension:
- Pre-2022 SC tax (at 7% top rate): $3,990 state tax
- 2022+ SC tax: $0
- Annual savings: $3,990
E-7 retiree with $35,000 pension:
- Pre-2022 SC tax (at 6.5% rate): $2,080 state tax
- 2022+ SC tax: $0
- Annual savings: $2,080
O-6 retiree with $80,000 pension:
- In neighboring North Carolina (5.25% flat tax): $4,200 state tax
- In South Carolina: $0
- Annual savings vs. NC: $4,200

Who qualifies: All military retirees who receive retirement pay from any branch of service (Army, Navy, Air Force, Marines, Coast Guard, Space Force, National Guard, Reserves). The deduction also applies to surviving spouses receiving military retirement income from their deceased spouse.

How to claim: Military retirees should update their DFAS withholding to stop withholding South Carolina state income tax. Use myPay or submit a completed IRS Form W-4P. When filing your South Carolina tax return, claim the military retirement deduction on SC1040, Schedule I (line for military retirement income subtraction).

VA Disability Compensation

Tax status: 100% exempt federally and in all states
South Carolina: Not taxed (disability compensation is not taxable income)

All VA disability compensation is federally tax-exempt and not included in your gross income. South Carolina does not tax VA disability payments.

Survivor Benefits (SBP)

South Carolina taxation: $0 (SBP is fully deductible from South Carolina taxable income)
Federal: Taxed federally

South Carolina allows surviving spouses to deduct military Survivor Benefit Plan (SBP) payments from their South Carolina taxable income. This mirrors the treatment of military retirement pay.

How to claim: When filing your South Carolina tax return, claim the military retirement income deduction on SC1040, Schedule I. SBP payments qualify as military retirement income for South Carolina tax purposes.

Other Military Income

Drill pay (Guard/Reserve): Subject to South Carolina income tax (6.5%-7% marginal rates)
Combat pay: Federally exempt; also excluded from South Carolina income
Active duty pay: Subject to South Carolina income tax if you're a South Carolina resident; protected under SCRA if you maintain out-of-state residency

South Carolina income tax rates (2025):

0% on first $3,200 (single) / $6,400 (married filing jointly)
3% on income $3,201-$16,040
6% on income $16,041-$19,260
6.5% on income $19,261+
Effective top rate: 6.5% (moderate nationally)

Vehicle & Registration Benefits

Disabled Veteran License Plates:

Cost: Free for wartime disabled veterans with loss/loss of use of limbs, impaired vision, or 100% P&T disabled
Parking: Free metered parking statewide (disabled veteran "V" tag, Purple Heart, Medal of Honor plates)
Annual savings: $40-$60 (registration fees) + free parking

South Carolina offers special disabled veteran license plates at no cost for qualifying disabled veterans. These plates provide free metered parking throughout the state—a valuable benefit in cities like Charleston, Greenville, and Columbia.

Eligibility for free disabled veteran plates:

Wartime disabled veterans with loss or loss of use of one or both legs or arms
Veterans with permanent impairment of vision in both eyes (service-connected)
Veterans classified as totally and permanently disabled (100% P&T service-connected)

Parking benefits: Vehicles displaying disabled veteran ("V" tag), Purple Heart, or Medal of Honor license plates are exempt from municipal parking meter fees. Note: These benefits apply only to plates issued after May 6, 2022. If you have an older military plate without the updated parking privileges, you can apply for a replacement plate to receive the benefit.

Handicapped parking: Disabled veteran license plates alone do not allow parking in designated handicapped spaces. For handicapped parking privileges, you must also obtain a wheelchair-designated placard or plate from SCDMV (requires separate medical certification).

Registration Fee Exemptions:

South Carolina provides full registration exemption (no fees) for:

100% permanently and totally disabled veterans—up to two private passenger vehicles
Veterans with loss or loss of use of limbs (service-connected)
Veterans with permanent impairment of vision (service-connected)

Vehicle Sales Tax Exemption:

South Carolina exempts up to two private passenger vehicles from the Infrastructure Maintenance Fee (IMF)—South Carolina's 5% vehicle sales tax—for:

100% P&T disabled veterans
Former POWs
Medal of Honor recipients

You must claim the exemption within 2 years of vehicle purchase. Surviving spouses are exempt from IMF on one vehicle.

Annual savings:

Registration fees: $40-$60 per vehicle x 2 vehicles = $80-$120 annually
Free parking: $100-$300+ annually (depending on usage)
Vehicle sales tax exemption: $500 per vehicle (maximum IMF is capped at $500), one-time savings of $1,000 for two vehicles

How to apply:

License plates: Apply by mail only to SCDMV Headquarters, Blythewood, SC. Include completed application, copy of DD-214, VA award letter (for 100% P&T), and required documentation.
IMF exemption: Apply at SCDMV within 2 years of vehicle purchase. Provide DD-214, VA award letter, and vehicle title.

Sales Tax

General sales tax: 6% state + up to 3% local (average combined 7.13%)
Groceries: Exempt
Prescription drugs: Exempt
Vehicle purchases: 5% Infrastructure Maintenance Fee (IMF), capped at $500 maximum

South Carolina has a 6% state sales tax, with local jurisdictions adding up to 3% (average combined rate 7.13%). This is moderate compared to neighboring states—North Carolina (6.75%-7.5%), Georgia (6%-9%), Tennessee (9.5%+ in cities).

Veteran-specific sales tax exemptions: South Carolina does not offer a general sales tax exemption for veterans on everyday purchases. However, 100% P&T disabled veterans, former POWs, and Medal of Honor recipients receive a vehicle sales tax exemption on up to two vehicles (see Vehicle & Registration Benefits above).

Example savings (vehicle exemption only):

Buying a $35,000 truck:
- Standard IMF (5% capped at $500): $500
- 100% disabled veteran: $0
- Savings: $500 per vehicle, $1,000 for two vehicles

Comparison to neighboring states:

North Carolina: 3% vehicle sales tax (uncapped)—$1,050 on a $35,000 vehicle
Georgia: 7% (uncapped)—$2,450 on a $35,000 vehicle
South Carolina: 5% capped at $500 ($500 max)—lowest vehicle tax in the region

South Carolina's $500 cap on vehicle sales tax is a significant advantage even for non-disabled veterans. For 100% disabled veterans, the complete exemption on two vehicles is among the best in the Southeast.

Overall Tax Analysis

Annual Tax Savings by Rating

100% Disabled Veteran (Charleston, $410,000 home, $45,000 military retirement):

Property tax saved: $2,091
Income tax saved (vs. pre-2022 SC): $3,150
Vehicle registration saved: $100
Vehicle sales tax saved (one-time, averaged over 10 years): $100
Total Annual Savings vs. pre-2022 SC: $5,441
Total savings vs. North Carolina: $6,450+

Military Retiree, No Disability ($50,000 retirement):

Property tax saved: $0
Income tax saved (vs. pre-2022 SC): $3,500
Income tax saved (vs. North Carolina): $2,625
Total annual savings: $2,625-$3,500

50% Disabled Veteran, No Military Retirement:

Property tax saved: $0
Income tax saved: $0
Vehicle/sales tax saved: $0
Total annual savings: $0

South Carolina's veteran tax benefits overwhelmingly favor two groups: (1) military retirees and (2) 100% P&T disabled veterans. If you fall into both categories, savings are substantial—$5,000-$8,000+ annually. If you're a military retiree without a 100% disability rating, you still save $2,500-$4,000 annually on income tax. However, if you're a disabled veteran (under 100%) without military retirement income, South Carolina offers minimal tax benefits.

20-Year Savings Projection

100% Disabled Veteran with Military Retirement:

Annual savings (vs. NC): $6,450
20-year total: $129,000
Net present value (3% discount rate): $96,000

Military Retiree (No Disability):

Annual savings (vs. NC): $2,625
20-year total: $52,500
NPV: $39,100

50% Disabled, No Military Retirement:

Annual savings: $0
20-year total: $0

Over 20 years, a 100% disabled military retiree saves approximately $129,000 by living in South Carolina instead of North Carolina. This is a substantial financial advantage, particularly when combined with South Carolina's lower cost of living (compared to metro areas in NC like Charlotte or Raleigh).

Comparison to Neighboring States

State	Military Retirement Tax	100% Disabled Property Exemption	Estimated Annual Savings (100% Disabled, $45K Retirement, $350K Home)
South Carolina	Fully exempt (2022+)	Full exemption (home + up to 5 acres, 2 vehicles)	$5,000-$6,500
North Carolina	Partially exempt ($22,500 exempt for those 55+)	$45,000 assessed value exemption	$3,000-$4,000
Georgia	Partially exempt ($65,000 age 62+, phasing to $100,000)	Full exemption (100% P&T, no land limit)	$5,500-$7,000
Tennessee	Fully exempt (no income tax)	Varies by county	$5,000-$6,000
Florida	Fully exempt (no income tax)	Full exemption (100% P&T or combat-disabled, no limit)	$7,000-$10,000+
Virginia	Partial subtraction ($30,000 cap at age 55+)	Varies by locality	$2,500-$4,000

Verdict: South Carolina ranks #2 in the Southeast for veteran tax benefits (behind Florida, which has no income tax and extremely generous property exemptions). South Carolina significantly outperforms North Carolina, Virginia, and the Carolinas' northern neighbors for both military retirees and 100% disabled veterans.

State vs National Comparison

Income tax treatment: Top tier—full exemption on military retirement (one of 24 states with full exemption)
Property tax exemption: Very good—full exemption for 100% P&T disabled veterans; property taxes are low to begin with (0.53% average vs. 0.90% national)
Sales tax: Moderate—6% state + local (7.13% average)
Overall ranking: Top 15 nationally for military retirees and 100% disabled veterans; Top 10 nationally for military retirees specifically

National rankings consistently place South Carolina in the top 10-15 states for military retirees. The full military retirement exemption (effective 2022) catapulted South Carolina into the top tier. For 100% disabled veterans, South Carolina is in the top 15-20 nationally—very good, though not as generous as states like Florida, Texas, or Alabama, which offer uncapped property exemptions or additional benefits at lower disability ratings.

Who Benefits Most

Best for:

Military retirees with pensions over $30,000 (save $2,000-$5,000+ annually on state income tax)
100% P&T disabled veterans (save $2,000-$4,000+ annually on property taxes, plus vehicle exemptions)
Veterans moving from high-tax states (NC, VA, NY, CA, NJ)
Dual beneficiaries (100% disabled + military retiree): save $5,000-$8,000+ annually
Veterans who value low property taxes and affordable cost of living (compared to coastal states)

Less beneficial for:

Veterans rated 30-90% disabled without military retirement income (no significant tax benefits)
Veterans without military retirement income (no income tax savings)
High-income veterans in expensive areas (Charleston, Hilton Head)—property/cost increases offset tax savings

Better options for non-retirees:

If you're 70-90% disabled and want property tax relief, consider Texas (exemptions starting at 10% disabled, scaled up to 100%) or Oklahoma (full exemption at 70%+)
If you want no income tax and better property exemptions for lower disability ratings, consider Florida (no income tax, substantial exemptions for 10%+ disabled veterans)

Additional Financial Benefits

Estate Tax / Inheritance Tax

South Carolina estate tax: None
South Carolina inheritance tax: None
Veteran exemptions: N/A (no estate/inheritance taxes)

South Carolina does not have state estate or inheritance taxes. This is beneficial for estate planning and wealth transfer to heirs.

Other Tax Benefits

Hunting and Fishing Licenses:

Disabled veterans: Free 3-year Disability Combination License (includes freshwater fishing, saltwater fishing, state hunting, big game, WMA, and migratory waterfowl)
Lifetime license: Available for paraplegic, quadriplegic, or legally blind veterans (statement from doctor required)
Value: $100-$150+ triennially

Tuition Assistance (for dependents):

Free tuition at South Carolina state colleges/universities for children of 100% P&T disabled or deceased veterans, POWs/MIAs, or Medal of Honor recipients (up to age 26)
Value: $12,000-$35,000+ per year (depending on institution)

State Benefits Summary Table

Benefit	Eligibility	Annual Value
Military retirement exemption	All military retirees	$2,000-$5,000+
Property tax exemption	100% P&T disabled	$1,500-$4,000+
Vehicle exemption (2 vehicles)	100% P&T disabled	$80-$120 (registration) + $1,000 one-time (sales tax)
Free hunting/fishing license	Disabled veterans	$35-$50/year
Free tuition (children)	100% disabled or deceased veterans	$12,000-$35,000+/year
Free disabled veteran plates	100% P&T, wartime disabled	$40-$60/year + parking savings

How to Maximize Benefits

Action Plan:

Establish South Carolina residency immediately. Get a South Carolina driver's license, register to vote, file a Declaration of Domicile with your county (some counties require this).
Update DFAS withholding to stop South Carolina state income tax. Use myPay or submit IRS Form W-4P. South Carolina does not tax military retirement, so you're overpaying if DFAS withholds SC tax.
Apply for property tax exemption within 30 days of moving (if 100% P&T disabled). File with your county auditor. You can claim retroactively to the year you became disabled (back to 2022), but file ASAP to avoid delays.
Apply for vehicle sales tax exemption immediately after purchasing a vehicle. You have only 2 years to claim the IMF exemption. Don't wait—apply at SCDMV with your DD-214, VA award letter, and vehicle title.
Apply for disabled veteran license plates and free parking. Order plates by mail from SCDMV Headquarters. Free plates + free metered parking saves $200+/year.
Claim free hunting/fishing license if you enjoy outdoor recreation. Contact SC Department of Natural Resources (803-734-3838) with DD-214 and VA disability letter.
Research tuition assistance for your children (if applicable). Contact SC Department of Veterans' Affairs (803-960-8327) to apply for free tuition at state institutions if you're 100% disabled or deceased.

Common Mistakes:

Not updating DFAS withholding: Military retirees often forget to stop South Carolina state income tax withholding. You'll get a refund when you file, but it's better to adjust withholding and keep the money throughout the year.
Missing the 2-year vehicle exemption deadline: The IMF exemption must be claimed within 2 years of vehicle purchase. After that, you've permanently lost the $500 exemption for that vehicle.
Not filing property exemption retroactively: If you became 100% P&T disabled in 2023 or 2024, you can claim the exemption back to the year you became disabled (2022 at earliest). Don't assume you have to wait until next year—file immediately to claim all eligible years.
Assuming partial disability qualifies for property tax exemption: Only 100% P&T (or POW/Medal of Honor) qualifies for the property tax exemption. If you're 70-90% disabled, you won't receive a property tax break in South Carolina.
Not claiming surviving spouse benefits: Surviving spouses of 100% disabled veterans can immediately claim the property tax exemption, even if the deceased veteran never applied. File with your county auditor with your spouse's DD-214 and VA award letter.

Resources

Apply Here:

Property tax exemption: Contact your county auditor
- Charleston County Auditor: (843) 958-4200 | charlestoncounty.org
- Richland County Auditor: (803) 576-2250 | richlandonline.com
- Greenville County Auditor: (864) 467-7300 | greenvillecounty.org
- Find your county: sccounties.org
MyDORWAY (online tax portal): dor.sc.gov/MyDORWAY
Disabled veteran plates / vehicle exemption: SCDMV | (803) 896-5000 | scdmvonline.com (applications by mail only to SCDMV Headquarters, 10311 Wilson Blvd, Blythewood, SC 29016)
Military retirement income tax exemption information: SC Department of Revenue | dor.sc.gov

Contact Information:

SC Department of Veterans' Affairs: (803) 960-8327 | scdva.sc.gov | scmveterans@admin.sc.gov
Tax questions: SC Department of Revenue | (803) 898-5000 | dor.sc.gov
Hunting/fishing license: SC Dept of Natural Resources | (803) 734-3838 | dnr.sc.gov

Frequently Asked Questions

Q: Do I pay state income tax on my military retirement in South Carolina?

A: No. As of the 2022 tax year, South Carolina fully exempts 100% of military retirement income from state income tax, regardless of age or income level. Update your DFAS withholding to stop South Carolina state tax.

Q: Can I get a property tax exemption if I'm 80% disabled?

A: No. South Carolina's property tax exemption requires 100% P&T disability. Unlike some states (Texas, Oklahoma), South Carolina does not offer partial exemptions at lower disability ratings.

Q: I'm 100% P&T. Do I need to reapply for the property tax exemption every year?

A: No. Once approved, the exemption typically renews automatically. However, notify your county auditor if you move or your circumstances change.

Q: Can my surviving spouse keep the property tax exemption if I die?

A: Yes. The exemption transfers to your unremarried surviving spouse. Your spouse can claim the exemption immediately upon your death, even if you never applied for it while alive.

Q: I'm TDIU (rated 70% but 100% unemployable). Do I qualify for the property tax exemption?

A: Possibly. TDIU qualifications vary by county. Contact your county auditor to determine if your TDIU rating qualifies for the 100% P&T exemption. Some counties grant it; others require a P&T designation specifically.

Q: Does the property tax exemption apply to second homes or rental properties?

A: No. Only your primary residence (and up to 5 acres of land) qualifies. Second homes and rental properties do not receive the exemption.

Q: I just bought a new truck. How do I claim the vehicle sales tax exemption?

A: Apply at SCDMV within 2 years of purchase. Bring your DD-214, VA award letter showing 100% P&T disability, and vehicle title. The exemption refunds or credits the $500 IMF (vehicle sales tax).

Q: Does South Carolina tax Social Security benefits?

A: No. South Carolina does not tax Social Security retirement benefits.

Q: I'm active duty stationed in South Carolina but my home of record is Florida. Do I pay South Carolina taxes?

A: No. Under SCRA (Servicemembers Civil Relief Act), you maintain Florida residency and are not subject to South Carolina income tax on your military pay. If Florida is your home of record, you also pay zero state income tax (Florida has no income tax).

Q: Can I get both the property tax exemption and the vehicle exemption?

A: Yes. If you're 100% P&T disabled, you qualify for both: full property tax exemption on your home (up to 5 acres) and exemption on two private passenger vehicles (registration fees and sales tax).

Q: What if I move from one South Carolina county to another?

A: You must reapply for the property tax exemption in your new county. The exemption does not automatically transfer between counties.

Q: Does the military retirement exemption apply to National Guard or Reserve retirement pay?

A: Yes. All military retirement pay is fully exempt from South Carolina state income tax, including National Guard and Reserve retirement (20+ year retirement pay). This does not include drill pay for active Guard/Reserve members—drill pay is taxable income.

Q: I became 100% P&T disabled in 2024. Can I claim the property tax exemption for 2024?

A: Yes. South Carolina allows you to claim the exemption retroactively to the year you became disabled (if you owned the property that entire year). File your application immediately with your county auditor to claim the full-year 2024 exemption.

Q: Are there local income taxes in South Carolina?

A: No. South Carolina has no local or county income taxes. The only income tax is the state tax (top rate 6.5%).

Q: Do I get a property tax exemption if I'm a Purple Heart recipient but under 100% disabled?

A: Not automatically. Purple Heart alone doesn't grant the property tax exemption—you must be 100% P&T disabled, a former POW, or a Medal of Honor recipient. However, Purple Heart recipients receive free metered parking with a Purple Heart license plate.

Q: How much do I save on sales tax living in South Carolina compared to neighboring states?

A: South Carolina's 6% state sales tax (7.13% average with local) is competitive with North Carolina (6.75%-7.5%) and lower than Georgia (7%-9%) or Tennessee (9.5%+). The main sales tax advantage for veterans is the vehicle IMF cap ($500 maximum), which is lower than surrounding states.

Q: Can I get free vehicle registration if I'm a Purple Heart recipient?

A: No. Free vehicle registration is only for 100% P&T disabled veterans, those with loss/loss of use of limbs, or those with permanent vision impairment (service-connected). Purple Heart recipients can get a free Purple Heart license plate with free parking, but standard registration fees apply unless you also meet the disability criteria.

Q: What if I have a 100% VA rating but it's not P&T (permanent and total)?

A: Contact your county auditor. Some counties may accept a 100% rating even if it's not designated P&T, but many require the P&T designation specifically. If you're TDIU (individually unemployable), you may also qualify—check with your county.

Last updated: 2025. Tax laws change frequently. Verify current rates and eligibility with SC Department of Revenue, SC Department of Veterans' Affairs, and your local county auditor.

Sources: VA.gov, Military OneSource, Benefits.gov