Myrtle Beach Real Estate

Compare Taxes In North and South Carolina

North Carolina

Sales Tax varies by County but averages between 6.25% - 7.5%.  ** An additional 1% should be added to the Sales Tax percentage from September 1, 2009 until July 1, 2011 when it is due to be removed.**

The State portion of the Tax on gas is 30.2 cents per gallon.

Personal Income Tax  Rate Range is 6.0% Low and  7.75% High

Personal Exemption is $1,000 single;  $2,000 married;  $0 dependents

Standard Tax Deduction is single $3,000 / married $6,000

North Carolina Retirement Income Deductions (from Retirement Living 10/8/09)

Retirement Income Taxes: Social Security is exempt.  At least $4,000 in exclusions for federal, state and local pensions (depending on dates and length of service); up to $2,000 exemption for qualified private pensions, including IRAs.  Out-of-state government pensions also qualify for the $4,000 exemption.  State  retirees with at least 5 years of creditable service as of August 12, 1989, will be permanently exempt from state income tax on their retired/retainer pay.  Be sure to investigate the Bailey decision.  Taxable income also includes income derived from gaming in North Carolina. 
Retired Military Pay: If an individual had five years of creditable service as of August 12, 1989, all military retired pay is exempt from taxes.  Otherwise, a deduction of up to $4,000 is allowed for military pay or survivor's benefits.
Military Disability Retired Pay: Retirees who entered the military before Sept. 24, 1975, and members receiving disability retirements based on combat injuries or who could receive disability payments from the VA are covered by laws giving disability broad exemption from federal income tax. Most military retired pay based on service-related disabilities also is free from federal income tax, but there is no guarantee of total protection.
VA Disability Dependency and Indemnity Compensation: VA benefits are not taxable because they generally are for disabilities and are not subject to federal or state taxes.
Military SBP/SSBP/RCSBP/RSFPP: Generally subject to state taxes for those states with income tax. Check with state department of revenue office.

North Carolina Property Taxes

All property, real and personal, is subject to taxation and is assessed based on 100% of appraised value.  Taxes are collected by cities and counties.  Under the homestead exemption, the greater of $25,000, or 50% of the appraised value of real property owned by a North Carolina resident and occupied by the owner as his or her permanent residence is excluded from the taxpayer's assessment, if the following requirements are met: (1) The owner is 65 years of age or older or is totally and permanently disabled.  (2) The disposable income of the owner did not exceed $25,000 for calendar year 2008. The 2009 limit is $25,600. The income eligibility limit is adjusted each year by the Social Security cost-of-living adjustment.  The disposable income limit amount includes all moneys received plus the disposable income of the applicant's spouse if they reside together.   Call 877-308-9103 for details.

The state also has a circuit breaker property tax deferment program.  Under this program, taxes for each year are limited to a percentage of the qualifying owner's income.  The qualifying owner must either be at least 65 years of age or be totally and permanently disabled.  For an owner whose income amount for the previous years does not exceed the income eligibility limit for the current year, which for the 2009 tax year is $25,6000, the owner's taxes will be limited to 4% of the owner's income.  For an owner whose income exceeds the income eligibility limit, which for tax year 2009 is $38,400, the owner's taxes will be limited to 5% of the owner's income.

North Carolina Personal Property Taxes: Automobile

Each County and Town has a different Personal Property Tax rate. Go to The Department of Revenue website at dornc.com

South Carolina

Sales Tax (prescription drugs are exempt) between 7% - 8%;  Seniors over 85 years of age only pay 4%

The State portion of the Tax on gas is 16.8 cents per gallon

Personal Income Tax is between 3% - 7%

Personal Exemption is single $3,500; married $7,000; dependents $3,500

Standard Tax Deduction is single $5,450 / joint $10,900

Retirement Income Taxes: Retirement income is taxed. Social Security exempt.  You can take this deduction for income received from any qualified retirement plan.  If both spouses receive retirement income, each spouse is entitled to an individual deduction.  At 65, the deduction is $15,000.  The $15,000 deduction must be offset by any other retirement deduction that is claimed.  A surviving spouse may continue to tackle a retirement deduction on behalf of the deceased spouse. Some taxpayers age 65 and older may not have to file a tax return if they meet certain conditions.
Retired Military Pay: Retirees with 20 or more years of active duty can deduct up to $3,000 annually until age 65 and up to $10,000 per year after age 65.  This deduction extends to the surviving spouse.  Pension or retirement income received for time served in the National Guard or Reserve components is not taxable.  Survivor benefits are taxed following federal tax rules.
Military Disability Retired Pay: Retirees who entered the military before Sept. 24, 1975, and members receiving disability retirements based on combat injuries or who could receive disability payments from the VA are covered by laws giving disability broad exemption from federal income tax. Most military retired pay based on service-related disabilities also is free from federal income tax, but there is no guarantee of total protection.
VA Disability Dependency and Indemnity Compensation: VA benefits are not taxable because they generally are for disabilities and are not subject to federal or state taxes.
Military SBP/SSBP/RCSBP/RSFPP: Generally subject to state taxes for those states with income tax. Check with state department of revenue office.

Property Taxes

(Social Security income, Railroad Retirement income, and disability retirement income due to permanent and total disability are Not taxed)

(Note: You must go to the County Tax Office and provide proof of South Carolina primary legal residency to receive the lower assessment rate. Each time you move to another taxable property within the State you must repeat the process)

Property tax is assessed and collected by local governments.  Both real and personal property are subject to tax. The market value of a legal residence and up to 5 acres of surrounding land is assessed at 4%.  For homeowners 65 and older, the state's homestead exemption allows the first $50,000 of their property's fair market value to be exempt from local property taxes.  South Carolina imposes a casual excise tax of 5% on the fair market value of all motor vehicles, motorcycles, boats, motors and airplanes transferred between individuals.

Not found on the state's web site is a reassessment provision called "Point of Sale" introduced during the property tax reform of 2006 enacted by the General Assembly.  According to this provision, when a property is purchased the assessed value of the property becomes the sale price.  The South Carolina Association of Realtors and the state Chamber of Commerce are joining forces to lobby lawmakers for property-tax assessment modifications.  Changes were seen in 2008 for many home owners.  We are hoping enough people complain about the "Point of Sale" assessment that the General Assembly will abolish the provision.

The market value of a legal residence and up to five acres of surrounding land is assessed at 4%. The millage rate of the local government is then applied to the assessed value resulting in the tax liability. The millage rate is set by local governments and varies widely throughout the state.

The first $100,000 in fair market value of a primary residence is exempt from school operating costs.

Some examples of how this property tax relief benefits taxpayers: Based most recent property tax rates, a $100,000 home in the city of Greenville would be taxed at $1,186. With the exemption, the homeowner would see a savings of $581, for a lower tax bill of $605. In the city of Columbia, without property tax relief, the tax on a $100,000 home would be $1,418. After tax relief, the property tax is reduced to $867, a savings of $551. The property tax relief will vary among school districts depending upon the millage for school operating costs.

If you have established one-year residency and you are 65 or older, you are eligible for a homestead exemption of $20,000. For the same home in the city of Columbia calculated previously, the homestead exemption would offer an additional savings of $173, for a total tax of $694 on a $100,000 home.

The assessment ratio on a second home or vacation home is 6%. The property tax relief does not apply to a second home.

Vehicle Property Taxes

Personal property tax is collected annually on cars, trucks, motorcycles, recreational vehicles, boats and airplanes, based on their fair market value. If you own a $10,000 car, based on the average millage rate, your personal property tax would be $268.

For information about personal property tax on motor vehicles, call the auditor's office in the county where you plan to live.

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