SC military retirement pay exempt from state income taxes beginning next year

All military retirement pay will be exempt from State Individual Income Tax starting tax year 2022, says the SC Department of Revenue.

COLUMBIA, S.C. (WOLO)— All military retirement pay will be exempt from State Individual Income Tax starting tax year 2022, says the SC Department of Revenue. The tax break does not include any earned income cap.

The announcement means South Carolina will join more than two dozen states whose retired military members aren’t required to pay tax on their retirement. The state has the 8th highest total of military retirees nation-wide, officials say.

Approximately 400,000 military veterans live in South Carolina, according to the South Carolina Department of Veteran’s Affairs (SCDVA).

For more information on this news, visit the SCDOR website.