SOUTH CAROLINA RETIREMENT INCOME TAX · TAX YEAR 2026
Does South Carolina tax Social Security and retirement income?
South Carolina does not tax Social Security benefits. South Carolina deducts up to $10,000 per person of pension and IRA income from 65 ($3,000 before), and a second deduction brings the total to $15,000 against any income. A single 67-year-old with $24,000 of Social Security, a $20,000 private pension and $10,000 of IRA withdrawals pays $7 in South Carolina income tax for 2026.
Your estimate
- South Carolina income tax
- $6.97
- Federal income tax
- $1,810.00
- Total income tax
- $1,816.97
Subtracted from South Carolina income
- Social Security
- $11,300.00
- Retirement deduction
- $10,000.00
- Age 65 and older deduction
- $5,000.00
Surviving spouse retirement deductions and the disability retirement subtraction are not modeled. South Carolina starts from federal AGI from 2026 (Act 110), so the federal 65+ and senior deductions do not flow through.
South Carolina tax at different retirement incomes
South Carolina income tax for 2026 on a single 67-year-old with $24,000 of Social Security, and on a married couple, both 67, with $20,000 each. Half the pension and IRA income is a private pension and half IRA withdrawals, all received by one spouse in the couple.
| Pension and IRA income | Single | Married |
|---|---|---|
| $20,000 | $0 | $0 |
| $40,000 | $306 | $0 |
| $60,000 | $1,171 | $76 |
| $100,000 | $3,463 | $1,885 |
| $150,000 | $6,068 | $5,201 |
Does South Carolina tax Social Security?
No. South Carolina subtracts Social Security and railroad retirement benefits that are taxed on the federal return.
Of the single 67-year-old's $24,000 in benefits, $11,300 is federally taxable and South Carolina taxes none of it. Of the couple's $40,000, $28,100 is federally taxable and South Carolina taxes none of it.
Does South Carolina tax pensions?
Partly. Private and government pensions get the same retirement deduction: up to $3,000 per person before 65 and up to $10,000 from the year you turn 65. From 65, a second deduction of up to $15,000 per person, less the retirement deduction, applies to any income. There is no income limit. Military retirement is deducted in full and does not use up the retirement deduction.
State tax for a single 67-year-old with $24,000 of Social Security, a $20,000 pension of each type and $10,000 of IRA withdrawals. Excluded is the part of the pension South Carolina exempts; age deductions that apply to any income are not counted.
| Pension | Excluded | State tax |
|---|---|---|
| Private | $0 | $7 |
| South Carolina government | $0 | $7 |
| Federal civil service | $0 | $7 |
| Military | $20,000 | $0 |
Does South Carolina tax IRA and 401(k) withdrawals?
Partly. IRA and 401(k) withdrawals share the retirement deduction with pensions. Distributions that carry the federal early-withdrawal penalty do not qualify; the calculator counts IRA income from age 60. Qualified Roth IRA withdrawals are not taxed.
With $24,000 of Social Security, $20,000 of IRA withdrawals and no other income, a single 67-year-old pays no South Carolina income tax for 2026.
At what age do retirement tax breaks start in South Carolina?
At 59 1/2, when IRA withdrawals start to count toward the $3,000 retirement deduction; the calculator uses age 60. From the year you turn 65, the deduction rises to $10,000 and the $15,000 age 65 and older deduction starts.
State tax at each age where the rules change. The single filer has $24,000 of Social Security, a $20,000 private pension and $10,000 of IRA withdrawals; the couple, both that age, has $20,000 of Social Security each and a $30,000 pension and $20,000 of IRA withdrawals.
| Age | Single | Married |
|---|---|---|
| 64 | $246 | $338 |
| 65Retirement deduction, Age 65 and older deduction | $7 | $0 |
What the calculator leaves out
Surviving spouse retirement deductions and the disability retirement subtraction are not modeled. South Carolina starts from federal AGI from 2026 (Act 110), so the federal 65+ and senior deductions do not flow through.
- Early IRA distributions do not qualify; the calculator counts IRA income from age 60 by December 31.
- The 65+ deduction reduces each spouse's $15,000 by that spouse's own retirement deduction.
Federal tax uses the 2026 brackets, the standard deduction with the extra amount at 65, and the $6,000 senior deduction. Estimates assume no other deductions, credits or local taxes except as noted.