Is it better to retire in South Carolina or North Carolina for taxes?

It depends on your income. Both states exempt Social Security. South Carolina deducts up to $10,000 of retirement income at 65 and exempts all military retirement, while North Carolina taxes most private pensions at a flat 3.99% in 2026, per the two states' revenue departments.

Does North Carolina tax military retirement?

Not if the retiree served at least 20 years or was medically retired, for tax years from 2022, according to the North Carolina Department of Revenue. Other military retirement pay is taxed.

What is the senior property tax exemption in Brunswick County, NC?

North Carolina's Elderly or Disabled Exclusion removes the greater of $25,000 or 50% of the home's appraised value for owners 65 or older with 2026 income of $38,800 or less. Apply by June 1; Brunswick County answers questions at (910) 253-2811.

Is there an income limit for the South Carolina homestead exemption?

No. South Carolina's homestead exemption goes to legal residents 65 or older, totally and permanently disabled, or legally blind, with no income test, according to the SC Department of Revenue.

South Carolina vs. North Carolina for Grand Strand retirees: income and property tax rules

For a Grand Strand retiree choosing between Horry or Georgetown County in South Carolina and Brunswick County in North Carolina, both states leave Social Security untaxed, but they treat pensions and property taxes very differently. As of Oct. 30, 2026, South Carolina lets residents 65 and older deduct up to $10,000 of retirement income and exempts the first $75,000 of a home’s value for the 2026-27 tax year with no income limit, per the South Carolina Department of Revenue (SCDOR). North Carolina taxes most pensions at a flat 3.99% from 2026 and limits its senior property tax break to homeowners with income of $38,800 or less in 2026, per the North Carolina Department of Revenue (NCDOR).

How do South Carolina and North Carolina tax retirement income?

This table compares the two states’ rules for the 2026 tax year, from SCDOR’s tips for retirees and 2026 tax legislation update, and NCDOR’s pages on Social Security, military retirement, the Bailey decision and tax rates.

Income	South Carolina (Horry, Georgetown)	North Carolina (Brunswick)
Social Security	Not taxed	Not taxed
Military retirement	Not taxed, any age, including reserves and National Guard	Deductible if you served 20 years or were medically retired (tax years from 2022)
Federal, state and local government pensions	Up to $3,000 deductible under 65, $10,000 from 65	Deductible if you had five years of service by Aug. 12, 1989 (Bailey settlement); otherwise taxed
Private pensions, 401(k)s and IRAs	Up to $3,000 deductible under 65, $10,000 from 65	Taxed as regular income
Extra deduction at 65	$15,000 against any income, minus retirement deductions already taken	None listed by NCDOR for retirement income
2026 tax rate	1.99% on taxable income under $30,000; 5.21% minus $966 at $30,000 and above	Flat 3.99%
2025 tax rate	Top rate 6%	Flat 4.25%

Both states may cut rates further from 2027. SCDOR says South Carolina’s top rate can fall if income tax revenue grows at least 5%, and NCDOR says additional rate changes may apply from 2027 under rate reduction triggers.

Which state taxes a pension less?

It depends on the type of pension and your age. A 67-year-old with $40,000 from a private pension can deduct $10,000 as retirement income in South Carolina plus $5,000 more from the age 65 deduction, so $15,000 of the pension is not taxed. In North Carolina, the same $40,000 private pension is taxed at 3.99% from the first dollar of taxable income, after the regular deductions everyone gets.

A military retiree with 20 years of service pays no state tax on that pay in either state. A retiree with fewer than 20 years and no medical retirement keeps the full exemption in South Carolina but not in North Carolina.

How do property tax breaks for seniors compare?

South Carolina’s break goes to every homeowner 65 or older, regardless of income. North Carolina’s main breaks are tied to income.

Property tax rule	South Carolina	North Carolina
Senior homestead break	First $50,000 of fair market value exempt; $75,000 for July 1, 2026, to June 30, 2027 (temporary)	Greater of $25,000 or 50% of appraised value excluded
Who qualifies	65 or older, totally and permanently disabled, or legally blind; one year of SC residency	65 or older or totally and permanently disabled
Income limit	None	$38,800 for 2026; $39,900 for 2027
Tax cap for low incomes	None	Circuit breaker: taxes capped at 4% of income up to $38,800, or 5% up to $58,200 (2026), with the excess deferred as a lien
Disabled veterans	Ask the county auditor	Up to $45,000 excluded, no age or income limit
Assessment of your home	Legal residence assessed at 4% of value, after you apply	Appraised value
Where to apply	County auditor, after approval for the 4% legal residence ratio	County assessor or tax office, by June 1

Sources: SCDOR’s property tax exemptions page and homestead flyer; NCDOR’s application forms for 2026 and 2027 (Form AV-9); and Brunswick County.

The North Carolina circuit breaker has extra rules: you must have owned and lived in the home for five full years before Jan. 1 and file a new application every year, according to Form AV-9.

Where do I apply on the Grand Strand?

County	Office	Phone
Horry County, S.C.	Auditor’s Office, homestead exemption, 1301 Second Ave., Suite 1C41, Conway	(843) 915-5051
Georgetown County, S.C.	County Auditor’s Office, Georgetown	See gtcounty.org
Brunswick County, N.C.	Tax relief programs, 30 Government Center Drive NE, Bolivia	(910) 253-2811

Horry County’s Auditor’s Office is open 8 a.m. to 5 p.m. Monday through Friday and also has offices in Little River and the South Strand. Brunswick County takes tax relief questions from 8:30 a.m. to 5 p.m. weekdays.

What should I check before I move?

Residency date: South Carolina’s homestead exemption needs a full calendar year of legal residence by Dec. 31 before the tax year, per SCDOR.
North Carolina deadline: Form AV-9 must be filed by June 1 to be on time.
Pension paperwork: Keep your service records if you plan to claim North Carolina’s military or Bailey deduction.

This story is information, not tax, legal or medical advice. Ask SCDOR, NCDOR or a licensed tax professional about your own situation.

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