Updated July 25, 2026. Quick answer (2026): South Carolina still taxes retirement withdrawals (top rate 5.21%), but levies no estate or inheritance tax. Four taxes decide what a move is actually worth — income tax on withdrawals, state estate tax, state inheritance tax, and what probate costs your heirs. This page prices all four for South Carolina and shows what each arriving state gains or gives up.
What South Carolina charges a retiree in 2026
| Tax | South Carolina position, 2026 |
|---|---|
| State income tax | restructured for TY2026 by H.4216 (signed March 30, 2026): 1.99% on income under $30,000; 5.21% marginal rate above (tax = 5.21% of income minus $966); new SCIAD standard deduction ($15,000 single / $30,000 MFJ, income-limited); revenue triggers to cut the top rate further |
| Social Security | Not taxed (exemption preserved under H.4216). |
| Pension / 401(k) / IRA | Retirement income deduction (S.C. |
| Estate tax | none |
| Inheritance tax | none |
| Probate fee model | hybrid |
| Probate filing fee | Statutory sliding scale on gross probate estate (S.C. Code §8-21-770(B)): $25 (<$5k); $45 ($5k-$20k); $67.50 ($20k-$60k); $95 ($60k-$100k); $95 + 0.15% of excess over $100k ($100k-$600k); $845 + 0.25% of excess over $600k ($600k+). Verified. |
| Small-estate limit | $25,000 (less liens/encumbrances) — collection of personal property by affidavit (S.C. Code §62-3-1201); 30-day wait. Dollar figure from well-documented secondary sources; not re-verified on scstatehouse.gov this pass. |
What you gain by arriving, depending on where you leave
The saving is not a property of South Carolina — it is a property of the pair. From some states the income-tax gain is the whole story; from others it is exactly zero and the real money is a death tax you leave behind.
- Moving from California — the top rate falls; the death taxes matter more
- Moving from Connecticut — the top rate falls; the death taxes matter more
- Moving from Illinois — you would START paying state income tax here
- Moving from Maryland — the top rate falls; the death taxes matter more
- Moving from Massachusetts — the top rate falls; the death taxes matter more
- Moving from Michigan — the top rate falls; the death taxes matter more
- Moving from New Jersey — the top rate falls; the death taxes matter more
- Moving from New York — the top rate falls; the death taxes matter more
- Moving from Ohio — the top rate falls; the death taxes matter more
- Moving from Virginia — the top rate falls; the death taxes matter more
Getting the sequence right
Arriving in South Carolina is the easy half. The order you do things in — when you establish domicile, when you convert, when you retitle or sell property back home — changes the total, and some of it is irreversible. See finding an advisor for a cross-state move.
What a move to South Carolina does not fix
- Domicile is a test, not an address. Your departing state can audit the move. Days present, licence, registrations and where your advisers sit all count.
- Property left behind stays reachable by the old state’s estate rules.
- Probate still applies. No estate tax is not the same as no probate; South Carolina uses a hybrid fee model.
- Roth conversions are taxed where you are domiciled that year — see how all 51 jurisdictions tax Roth conversions.
Full detail: South Carolina retirement taxes. Compare any pair with the retirement tax comparison tool, or browse all corridors at the relocation hub.
Getting the order right
Move timing, conversion sequencing and estate exposure interact. Know what advice should cost before you buy it — see our advisor cost guide.
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Cite or share this guide
Suggested citation: Clear Money Guide, “Retiring to South Carolina: the 2026 Tax Position,” statute-cited; clearmoneyguide.com/retiring-to-south-carolina-taxes/. Free to cite with attribution. Download the full dataset as CSV, or contact contact@clearmoneyguide.com for custom cuts.
Primary sources
- SCDOR: Information about H. 4216
- S.C. Code § 12-6-1170 (retirement deduction)
- S.C. Code § 12-6-1171 (military retirement)
- S.C. Code §62-3-719
- S.C. Code §62-3-1201
- S.C. Code §8-21-770