Military Retirement Pay

Military Retirement Pay: 100% State Income Tax Exemption

All military retirement pay is completely exempt from South Carolina state income tax starting with tax year 2022.

Retiree
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Last checked: 2026-05-21

Details

All military retirement pay is completely exempt from South Carolina state income tax starting with tax year 2022. There is no age cap and no earned-income cap. Surviving spouses receiving military retirement income from a deceased spouse also qualify.

Restrictions

Signed into law May 2022 (Workforce Enhancement and Military Recognition Act). Retirees adjust state income tax withholding through myPay (DD Form 2058 or W-4).

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