South Carolina Taxes for People Relocating to Myrtle Beach

The honest reason a lot of our buyers move here is the after-tax math. South Carolina exempts Social Security, has no estate or inheritance tax, restructured its income tax in 2026, and assesses owner-occupied primary residences at a 4% ratio for property tax. For a couple relocating from New York, New Jersey, Massachusetts, Connecticut, Illinois, or California, the year-one tax savings often pay for the move and most of the closing costs.

This page walks through the SC tax picture the way we walk through it on a phone call with a relocation buyer. Nothing here is legal or tax advice — talk to a CPA before you close. But you'll understand what questions to ask.

State Income Tax (2026 and Forward)

South Carolina restructured its income tax in March 2026 with the passage of H.4216. The previous graduated brackets (which had already been compressed to a 6% top rate for tax year 2025) were replaced with a two-bracket system effective tax year 2026:

• 1.99% on the first $30,000 of taxable income.
• 5.21% on taxable income above $30,000.

The law also includes an automatic-reduction mechanism: when general fund revenue grows by at least 5% in a year, both rates step down further. So the trajectory is toward lower rates, not higher.

This still isn't Florida (no income tax) or Tennessee (no income tax), but it's well below most northern states. A couple with $150,000 of taxable income pays roughly $7,000 in SC state tax under the 2026 structure — less than a quarter of what the same couple would pay in California or New York.

Social Security Is Fully Exempt

South Carolina does not tax Social Security benefits at the state level. Doesn't matter what your federal taxable percentage of SS is, doesn't matter your income level — SS is excluded from the SC return.

For a couple drawing combined Social Security of $60,000 a year, that's roughly $3,000 of state tax saved every year compared to the same couple in a state that taxes SS partially or fully.

The Retirement Deductions (Age 65 and Up)

South Carolina layers two deductions for older taxpayers:

Retirement-income deduction. Up to $3,000 of qualifying retirement income (pensions, IRA distributions, 401(k) withdrawals) for taxpayers under age 65; up to $10,000 at age 65 and older.

Age 65 and older deduction. Separately, taxpayers 65+ may claim up to $15,000 deducted from any income.

Here's the catch: the combined total of the retirement-income deduction and the Age 65 deduction cannot exceed $15,000 per taxpayer. So if you take the full $10,000 retirement deduction, your Age 65 deduction is capped at $5,000 that year.

For a married couple where both spouses are 65+, that's up to $30,000 of combined deductions before they ever hit the new lower brackets. The effective state tax rate on retirement income for many SC retirees ends up in the low single digits.

Property Tax — the 4% vs 6% Question

This is the section most relocation buyers miss until they get their first tax bill. South Carolina assesses property at one of two ratios:

4% — Owner-occupied legal residence. Your primary home if you actually live there, file your SC tax return from that address, and register your vehicles there.

6% — Second homes, rental property, investment property, raw land. Everything that isn't a legal residence.

The 50% difference in assessment ratio drives a meaningful tax bill difference. On a $500,000 home, the 4% ratio means roughly $1,500–$2,000 a year in property tax; the 6% ratio means roughly $4,000–$6,000.

What qualifies for the 4% rate

To claim the 4% legal residence ratio you have to:

(1) Actually use the property as your principal residence;
(2) File your SC state income tax return from that address;
(3) Register all your vehicles at that address with the SCDMV;
(4) Limit the property to no more than 5 contiguous acres;
(5) Not rent the property for more than 72 days per year.

The legal-residence application is filed with the county assessor (Horry County or Georgetown County for the Grand Strand). It's a paper-shuffle, not a hard test — but if you don't file the application, the county defaults to the 6% rate.

What this means if you're keeping a property up north

You can only have one legal residence in SC. If you're snowbirding and keeping your house in New Jersey or New York, you have to decide which state is your domicile. If SC is your domicile, the SC house gets the 4% rate and the northern house becomes a second home up there. If your old state is your domicile, the SC house pays the 6% rate.

For most buyers the SC domicile is the right call because of the SS exemption, the lower income tax, and the lack of estate tax. But it's a decision worth running by a CPA before you change registrations.

Sales Tax

Combined state and local sales tax in Horry County is 8% as of May 2025 (6% state + 1% Education Capital Improvement + 1% Transportation). Groceries are exempt from the state sales tax. Prescription drugs are exempt.

For visitors and short-term renters, the City of Myrtle Beach adds accommodations and hospitality taxes on top of sales tax — relevant if you're buying a second home you plan to short-term rent. See the second-home buyer page.

Vehicle Tax

South Carolina charges an Infrastructure Maintenance Fee (IMF) of 5% of the vehicle purchase price, capped at $500, at the time of titling and registration. This replaces sales tax on the vehicle.

Separately, every car registered in SC pays an annual county vehicle property tax based on assessed value. For a typical late-model vehicle, the annual tax runs a few hundred dollars.

Estate Tax and Inheritance Tax

South Carolina has neither. The state estate tax was repealed for decedents on or after January 1, 2005, and SC has never had an inheritance tax. Federal estate tax still applies above the federal exemption.

For relocation buyers coming from Massachusetts, New York, New Jersey, Connecticut, Illinois, Oregon, Washington, or any other state with an estate tax, this is a significant long-term planning factor.

Quick Tax Comparison for a Typical Relocation Buyer

For a retired couple, both age 67, drawing $60,000 of Social Security plus $90,000 of pension/IRA income, owning a $500,000 primary home:

South Carolina: SS not taxed. Retirement income absorbed largely by the $10,000 retirement deductions plus part of the $15,000 Age 65 deductions. Effective state income tax in the low single thousands. Property tax on the home roughly $1,500–$2,000 at the 4% ratio. No estate tax.

New York (Westchester): SS not taxed by NY, but pension/IRA may be subject to NY rates up to ~6.85%. Property tax on a comparable home easily $12,000–$20,000. Estate tax above $7M.

New Jersey: SS not taxed by NJ. Income tax up to 10.75% top bracket. Property tax on a comparable home often $10,000–$16,000. Estate tax repealed but inheritance tax remains.

California: SS not taxed by CA. Income tax up to 12.3% top bracket. Property tax capped at 1% by Prop 13 but on a much higher home value. No estate tax.

These are illustrative ranges — not your specific picture. Run real numbers with a CPA. But for most relocation buyers from high-tax states, the year-one state tax savings on moving to SC fall in the $8,000–$25,000 range.

Frequently Asked Questions

Does South Carolina tax Social Security?

No. Social Security is fully exempt from SC state income tax regardless of income level.

What is the current South Carolina income tax rate?

Effective tax year 2026, SC has a two-bracket structure: 1.99% on the first $30,000 of taxable income and 5.21% above. The structure was established by H.4216, signed in March 2026. Future automatic reductions are tied to revenue growth.

What's the difference between the 4% and 6% property tax assessment ratios in SC?

4% applies to your owner-occupied legal residence; 6% applies to second homes, rentals, investment property, and land. Establishing the 4% rate requires filing the legal residence application with the county assessor and meeting the domicile tests (SC tax return, vehicle registration, principal-residence use).

How much retirement income can someone 65+ deduct in South Carolina?

Up to $10,000 retirement-income deduction plus up to $15,000 Age 65 deduction against any income — with a combined cap of $15,000 per taxpayer. For a married couple where both are 65+, the combined caps allow up to $30,000 of deductions before regular tax brackets apply.

Does South Carolina have an estate tax or inheritance tax?

No to both. The SC estate tax was repealed for decedents on or after January 1, 2005, and SC has never had an inheritance tax. Federal estate tax still applies above the federal exemption.

What's the sales tax in Myrtle Beach?

Combined state and Horry County sales tax is 8% as of May 2025. Groceries and prescription drugs are exempt from the state portion.

If I keep my house in New York and buy a second home in Myrtle Beach, what tax rate do I pay?

The Myrtle Beach property is assessed at the 6% non-owner-occupied ratio — roughly 50% higher property tax than the 4% legal residence rate. You can only claim the 4% rate on one home and only if you establish SC as your legal domicile (SC tax return filed, vehicles registered in SC, principal residence use).

Are property taxes in Myrtle Beach low?

For owner-occupied primary residences, yes — SC has some of the lowest property taxes in the country at the 4% ratio. The annual bill on a $500,000 primary home in Horry County typically lands between $1,500 and $2,000. For second homes and rentals at the 6% ratio, the bill on the same property is roughly $4,000–$6,000.

Keep Reading

Back to the relocation guide

Cost of living on the Grand Strand

Retiring to Myrtle Beach

Buying a second home

Nothing on this page is legal, tax, or accounting advice. Tax rules change. Talk to a licensed CPA about your specific situation before you make a relocation, domicile, or property purchase decision.