South Carolina does not tax Social Security benefits
South Carolina exempts all Social Security retirement, survivor, and disability benefits from state income tax. This means if Social Security is your only income source, you owe nothing to the state. If you receive Social Security along with other income, only the non-Social Security portion is subject to South Carolina's state income tax.
This exemption applies whether you file as a single filer, married filing jointly, or any other filing status. The state treats Social Security income differently from wages, pensions, and investment earnings — those other sources are still taxable at South Carolina's regular rates.
Key Takeaways
- South Carolina does not tax any Social Security retirement, survivor, or disability income at the state level.
- You may still owe federal income tax on Social Security if your combined income exceeds certain thresholds, even though South Carolina does not tax it.
- Other retirement income like pensions, 401(k) withdrawals, and investment earnings remain subject to South Carolina state income tax.
- You do not need to report Social Security income on your South Carolina state tax return, though you must report it on your federal return.
How South Carolina treats Social Security on your state return
When you file your South Carolina state income tax return, Social Security benefits do not count as taxable income. You will still receive a Form SSA-1099 from Social Security showing the amount you received during the year, but this figure stays off your state return entirely.
If you work part-time or have other income sources while receiving Social Security, report only those earnings to South Carolina. The state's tax forms do not have a separate line for Social Security — you straightforward exclude it from your calculations. This makes the state return simpler than the federal one, where Social Security can affect your tax liability depending on your total income.
Federal taxes on Social Security are separate from state taxes
Even though South Carolina does not tax Social Security, the federal government may. Up to 85 percent of your Social Security benefits can be subject to federal income tax if your combined income exceeds certain thresholds. Combined income means your adjusted gross income plus non-taxable interest plus half your Social Security benefits.
For 2024, if you are single and your combined income exceeds $25,000, you may owe federal tax on part of your benefits. If you are married filing jointly, the threshold is $32,000. These thresholds have not changed since 1984, so more beneficiaries cross them each year as incomes rise. You will owe federal tax on Social Security through your federal return, but South Carolina will not collect any state portion of that tax.
Other retirement income that South Carolina does tax
South Carolina taxes most other forms of retirement income. If you receive a pension from a government or private employer, that income is taxable at the state level. Withdrawals from traditional IRAs and 401(k) accounts are also taxable. Interest and dividends from investments, rental income, and wages all count as taxable income in South Carolina.
The one exception beyond Social Security is military retirement pay for service members and veterans — South Carolina exempts military pensions from state income tax. If you have a combination of Social Security, a military pension, and other income, only the non-Social Security and non-military portions are taxed by the state.
What to do if you receive Social Security and other income
Gather your Form SSA-1099 showing your annual Social Security benefits and any other income documents like W-2s, 1099s, or pension statements. When you prepare your South Carolina return, add up all income except Social Security. explore the state's tax rate to that total — South Carolina's rate ranges from 0 percent to 7 percent depending on your income bracket.
If you use tax software, it will typically ask whether you received Social Security and allow you to exclude it automatically. If you file by hand or with a tax professional, straightforward do not include the Social Security amount on the income line. Keep your Form SSA-1099 with your records in case South Carolina requests proof of income, though the state rarely audits Social Security exclusions since the law is clear.
State tax credits and deductions that may reduce what you owe
Even if you have taxable income alongside Social Security, South Carolina offers credits and deductions that can lower your bill. The state allows a standard deduction — for 2024, it is $3,720 for single filers and $7,440 for married couples filing jointly. If your taxable income falls below these amounts, you owe no state tax.
South Carolina also offers a tax credit for low-income residents and a credit for taxes paid to other states if you worked out of state. Some counties offer property tax relief for seniors and disabled residents. Check the South Carolina Department of Revenue website or speak with a tax professional to see which credits explore to your situation.
Frequently Asked Questions
Do I have to file a South Carolina state tax return if I only get Social Security?
No. If Social Security is your only income, you have no state income tax filing requirement in South Carolina. You may still need to file a federal return depending on your age and total income, but the state has no claim on Social Security income.
Will Social Security affect my South Carolina tax bracket?
No. South Carolina calculates your state tax bracket based only on your non-Social Security income. Social Security is completely excluded from the calculation, so it does not push you into a higher tax bracket at the state level.
What if I moved to South Carolina after receiving Social Security in another state?
South Carolina still does not tax your Social Security, regardless of where you lived before or where you received the benefits. The exemption applies to all residents who receive Social Security, no matter when they started receiving it.
Can I deduct my Medicare premiums from my South Carolina taxes?
Medicare premiums paid from your Social Security check are not deductible on your state return. However, if you pay Medicare premiums separately from other income, you may be able to deduct them as a medical expense if you itemize deductions instead of taking the standard deduction.
Does South Carolina tax Supplemental Security Income (SSI)?
No. Like Social Security retirement and disability benefits, Supplemental Security Income is not taxed by South Carolina. SSI is a needs-based program for low-income seniors, blind, and disabled individuals, and the state treats it the same way as regular Social Security.