Does South Carolina tax military retirement?

No. South Carolina exempts military retirement pay from state income tax regardless of age, and surviving spouses can claim the deduction too.

Is military retirement taxed in North Carolina?

North Carolina lets retirees deduct it if they served at least 20 years or were medically retired under 10 U.S.C. Chapter 61. Others may owe state tax on it.

Do 100% disabled veterans pay property tax in Horry County?

Veterans with a total, permanent, service-connected disability can exempt their home and up to 5 acres, plus two cars, from South Carolina property tax. Apply through SCDOR's MyDORWAY.

What is the North Carolina disabled veteran property tax exclusion?

It excludes the first $45,000 of a qualifying veteran's home value. File form NCDVA-9, completed by a veterans service officer, with the county assessor by June 1.

South Carolina vs. North Carolina for veterans: retired pay, property tax and licenses

Veterans deciding between the South Carolina and North Carolina sides of the Grand Strand face different tax rules. As of Oct. 30, 2026, South Carolina exempts military retirement pay included in taxable income from state income tax “regardless of age,” per the S.C. Department of Revenue. North Carolina deducts military retired pay only if the retiree served at least 20 years or was medically retired, per the N.C. Department of Revenue.

For a 100% disabled veteran’s home, South Carolina’s exemption is total; North Carolina’s is capped at the first $45,000 of appraised value.

How do the two states compare?

Benefit	South Carolina (Horry, Georgetown)	North Carolina (Brunswick)
Military retired pay	Exempt from state income tax at any age; surviving spouses can claim it too	Deductible with 20+ years of service or a medical retirement under 10 U.S.C. Chapter 61; Survivor Benefit Plan payments qualify
Social Security	Exempt	Not taxed
Disabled veteran home	Total exemption on home and up to 5 acres for a total, permanent, service-connected disability	First $45,000 of appraised value excluded; no age or income limit
Vehicles	Up to two private passenger vehicles exempt for the same veterans	Not included in the exclusion
Seniors 65+ (any homeowner)	First $50,000 of a home’s fair market value exempt after one full year of residency	Greater of $25,000 or 50% of value excluded if 2025 income was $38,800 or less
“Veteran” on driver license	Free for honorably discharged veterans; apply in person at SCDMV	Free; renewal or duplicate fees still apply
Hunting and fishing	Free 3-year license for disabled residents getting VA disability benefits	Lifetime licenses from $15 for residents rated 50% or more disabled

Sources: S.C. and N.C. departments of revenue, SCDOR veterans property tax guide, N.C. form AV-9, U.S. Air Force benefits library for South Carolina and North Carolina, SCDNR and the N.C. Wildlife Commission (NCWRC), checked Oct. 30, 2026.

How do I claim the South Carolina property tax exemption?

Apply online through the S.C. Department of Revenue’s MyDORWAY portal, which replaces paper forms. Since 2024, the exemption on real property can start in the year the disability occurs, and claims can reach back two years if property taxes were paid on time, per SCDOR. A veteran applying in 2025 could go back to 2023 at the earliest. Surviving spouses can claim it right away, whether or not the veteran had applied. Medal of Honor recipients and some former prisoners of war get a similar exemption on a home and up to one acre.

How do I claim the North Carolina exclusion?

A veterans service officer at a county or state veterans office completes form NCDVA-9, and you file it with the Brunswick County tax assessor by June 1, per the N.C. Department of Revenue’s AV-9 application. You qualify with an honorable discharge and either a total and permanent service-connected disability or VA specially adapted housing benefits. The disability must exist on Jan. 1. Some unmarried surviving spouses also qualify. Brunswick County Veterans Services in Bolivia (910-253-2233) can help, per Brunswick County.

What about other South Carolina retirement deductions?

Beyond military pay, South Carolina lets residents deduct up to $3,000 of other retirement income before 65 and $10,000 from 65, and residents 65 and older get a $15,000 deduction, reduced by any retirement or military retirement deduction claimed, per SCDOR.

Are there differences in veterans homes?

South Carolina runs six state veterans nursing homes; the nearest to the Strand is Veteran Village in Florence (843-432-4600), per the S.C. Department of Veterans’ Affairs. North Carolina has four state veterans homes, in Salisbury, Black Mountain, Kinston and Kernersville, per the Air Force benefits library.

Tax rules change. Check the year on any figure before you move, and ask a county veterans office to walk through your own case.

This story is information, not legal or financial advice.

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