South Carolina does not tax Social Security benefits
South Carolina has no state income tax on Social Security retirement, survivor, or disability benefits. This applies whether you receive benefits from your own work record or as a spouse or dependent. The state treats Social Security the same way the federal government does: as income that is not subject to state taxation.
This means your Social Security check arrives untaxed by South Carolina, and you do not owe state income tax on it when you file your state return. If you live in South Carolina and receive Social Security, you will not see a state tax liability tied to those benefits.
Key Takeaways
- South Carolina does not tax Social Security benefits at the state level, regardless of how much you receive or your total income.
- This exemption covers retirement, survivor, and disability benefits paid by Social Security Administration.
- You still may owe federal income tax on Social Security if your combined income exceeds certain thresholds, but South Carolina adds no state tax on top of that.
- If you moved to South Carolina from another state, your Social Security remains untaxed even if your previous state taxed it.
What counts as Social Security income in South Carolina
The Social Security benefits that South Carolina does not tax include monthly payments from the Social Security Administration for retirement, survivor benefits (paid to a spouse or child after a worker's death), and Supplemental Security Income (SSI) for disabled or blind individuals. Lump-sum death benefits are also exempt.
The exemption applies to the full amount of your benefit check, not a portion of it. South Carolina does not reduce the exemption based on your age, your other income, or how long you have lived in the state. If you receive $2,000 per month in Social Security, none of that $2,000 is taxable to South Carolina.
Federal taxes on Social Security still apply
Even though South Carolina does not tax Social Security, the federal government may. Whether you owe federal tax on your benefits depends on your combined income—which includes your Social Security, wages, interest, dividends, and other sources. The federal threshold is $25,000 for a single filer and $32,000 for married filing jointly.
If your combined income exceeds these thresholds, up to 50 percent or 85 percent of your Social Security benefits may be subject to federal income tax. This is a federal rule that applies everywhere, including South Carolina. You will owe this federal tax even though you owe nothing to the state.
How to report Social Security on your South Carolina tax return
When you file your South Carolina state income tax return, you report your Social Security benefits on the same forms you use for federal taxes. However, because South Carolina does not tax Social Security, the state portion of your return will show no tax liability on those benefits.
You still must file a federal return if your combined income exceeds the federal threshold, even if you owe no state tax. The Social Security Administration sends you a Form SSA-1099 each January showing the benefits you received in the prior year. Use this form to report to both the IRS and South Carolina.
Nonresidents and part-year residents
If you moved to South Carolina during the year, you are a part-year resident. South Carolina taxes only the income you earned while living in the state. However, because Social Security is not taxed by South Carolina at all, it does not matter when you moved—your benefits remain untaxed for the entire year.
If you do not live in South Carolina but receive Social Security, you do not owe South Carolina state tax on it. South Carolina only taxes residents and part-year residents on income earned in the state. Social Security benefits are never taxed by South Carolina, regardless of where you live.
Other income and your total tax picture
While your Social Security is untaxed by South Carolina, other income you receive may be. Wages, self-employment income, interest, dividends, rental income, and pensions are all subject to South Carolina income tax if you are a resident. Your total state tax bill depends on these other sources, not on your Social Security.
If you have a pension, part-time work, or investment income in addition to Social Security, you may owe South Carolina tax on those amounts. The Social Security exemption does not reduce your tax on other income. You calculate your state tax on everything except Social Security, then apply South Carolina's tax rate.
Frequently Asked Questions
Do I have to file a South Carolina tax return if I only receive Social Security?
No. If Social Security is your only income and you are not required to file a federal return, you do not have to file a South Carolina return either. South Carolina follows federal filing requirements. However, if you have other income—wages, interest, or a pension—you may need to file even if Social Security is your largest income source.
What if I moved to South Carolina from a state that taxes Social Security?
Your Social Security is no longer taxed once you become a South Carolina resident. You owe tax only to your state of residence. If you moved mid-year, you may owe tax to your former state for the months you lived there, but South Carolina will not tax your Social Security for any part of the year.
Does the Social Security tax exemption affect my Medicare premiums?
No. Your Medicare premiums are based on your modified adjusted gross income (MAGI) for federal purposes, not on what South Carolina taxes. The state tax exemption does not change your MAGI or your Medicare costs. Federal rules determine your premiums, and those rules treat Social Security the same way regardless of state tax status.
If I owe federal tax on my Social Security, do I also owe South Carolina tax on it?
No. Federal and state taxes are separate. You may owe federal income tax on part of your Social Security if your combined income is high enough, but you will owe zero South Carolina tax on it. The federal threshold is different from the state threshold (which is zero).