Myrtle Beach Real Estate

Compare Taxes In North and South Carolina

North Carolina Taxes

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 and Federal Government retirees including Military with at least 5 years of creditable service as of August 12, 1989, are permanently exempt from state income tax on their retirement/retainer pay.  Be sure to investigate the NC Bailey Decision on Retirement Benefits.  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 was $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 Taxes

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

South Carolina Retirement Income Taxes:

Starting with the first year you receive retirement income and until you turn 65, you may take an annual deduction of up to $3,000 from retirement income.  You may take the deduction for income received from any qualified retirement plan.  If both spouses receive retirement income, each spouse may claim the $3,000 = $6,000.  At age 65, all residents are eligible to deduct up to $15,000 from income, regardless of the source.  Reduce the deduction by the amount of any other retirement income deduction claimed.  A surviving spouse may continue to take a retirement deduction on behalf of the deceased spouse.  Under certain conditions some taxpayers age 65 and older may not have to file a tax return.  To find out more about the conditions that have to be met call the South Carolina Dept. of Revenue, Individual Income Tax division (803) 898-5709.

Social Security benefits are not taxed in the state of South Carolina.

Income received from National Guard or armed forces reserve pay for the annual training period and weekend drill duty time is exempt from tax. 

Disability income for a permanent and total disability is deductible.

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.
 

South Carolina Property Taxes:

When you are a legal resident your condo or home and up to 5 acres of surrounding land will be assessed at market value x 4% x .___ millage rate.  (Millage rates vary by location).   Also legal residents are exempt from all property taxes imposed for school operating purposes. 

Example based on $200,000 owner-occupied residence assessed at 4% in an area where the millage rate is 200 mills.   $200,000 x 4% x .200 = $1,600

If you have established a one-year residency and you are age 65 or older, legally blind, or permanently and totally disabled, you are eligible for a homestead exemption of $50,000 from the value of your home.

Using the same example from above but applying the homestead exemption:  $200,000 - $50,000 = $150,000 x 4% x .200 = $1,200

Paralyzed quadraplegic and paraplegic legal residents may be entitled to pay NO Property Tax.  Call the South Carolina Department of Revenue in Columbia, SC or your County Tax Assessor's office.  A form must be completed and medical proof provided but it is available.  This special tax relief is not publicized and you may have to make numerous phone calls to find someone who can help you. 

Second home and investment property owners are taxed at 6% with millage rates that include a percentage imposed for school operating purposes and there is no relief available for age or disability. Keep in mind as you look at the example for a second home, vacation home, or investment that the property taxes are still considerably low.

Example based on $200,000 vacation / investment home assessed at 6% in an area where the millage rate is 228 mills.   $200,000 x 6% x .228 = $2,736

South Carolina Personal 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 $173 annually.

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

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