Does South Carolina tax military retirement pay?
Not taxed
No. South Carolina lets taxpayers deduct all military retirement income included in South Carolina taxable income, and the deduction extends to a surviving spouse.
In the state's own words
Copied word for word from the official document linked below each quote:
“Taxpayers can deduct all military retirement income included in their South Carolina taxable income.”
Other retirement income in South Carolina
Partly. South Carolina taxes pension income, but you can deduct up to $3,000 of retirement income a year before 65 and up to $10,000 from 65. All military retirement income is deductible. The South Carolina pension page has the details, and the South Carolina Social Security page covers Social Security. No. Social Security taxed on your federal return is not taxed by South Carolina.
Before you file or move
This page is about state income tax only. Your federal return has its own rules for military retired pay, and VA disability compensation is a separate benefit from retired pay. State rules change, and the details (age, years, which kinds of pay qualify, survivor benefits) matter. Check with the South Carolina Department of Revenue before you file or move.
Other states in the same group
Check our work
The answer above comes from this document. Follow the link and compare.
- Individual Income Tax FAQsSouth Carolina Department of Revenue. Read on November 13, 2026.