Myrtle Beach Real Estate

Information and Real Estate Search for The Grand Strand

Taxes North and South Carolina

Compare Taxes In North and South Carolina

North Carolina Taxes

There were major changes effective for tax years beginning on or after January 1, 2014. The information below has been updated but call the State at 1-877-252-3052 if you have any questions.

-  Sales Tax varies by County but averages 7.75%
-  Personal Income Tax Rate Range is 5.8% effective 2014 and 5.75% effective 2015
-  Personal Exemption has been eliminated but Standard Deduction has been increased.
-  Standard Tax Deduction is single $7,500/ married filing joint $15,000 / head of household $12,000. Those 65 or older, blind, or who can be claimed by someone as a dependent may have a different    standard deduction.

Retirement Income Taxes:

Social Security is exempt.

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.

 Bailey Decision Concerning Federal, State and Local Retirement Benefits
As a result of the North Carolina Supreme Court's decision in Bailey v. State of North Carolina, North Carolina may not tax certain retirement benefits received by retirees of the State of North Carolina and its local government or by the United States government retirees (including military) for each retirement plan if the retiree has five or more years of creditable service as of August 12, 1989. The exclusion also applies to retirement benefits received from the State's 401 (k) and 457 plans if the retiree had contributed or contracted to contribute to the plan prior to August 12, 1989. The exclusion does not apply to local government 457 plans, 403(b) annuity plans, or to retirement benefits paid to former teachers and state employees of other states and their political subdivisions. You can view the list of qualified plans in the North Carolina Department of Revenue Individual Income Tax Bulletins. A retiree entitled to exclude retirement benefits in arriving at North Carolina taxable income should claim a deduction on line 44 of the D-400 for the amount of excludable retirement benefits included in federal taxable income. A copy of Form 1099-R or W-2 received from the payer must be attached to the return to support the deduction.

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.  This benefit may have changed on January 1, 2014 visit www.dornc.com for more information.

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.

Brunswick County, North Carolina currently has a property tax rate of 44.25 CENTS per $100 of assessed value.  As an example a $300,000 assessed value for a home would have a property tax of $1,327.50 ($300,000 x .4425 = 132,750 cents divided by 100 to get dollars = $1,327.50) For property tax rates as of 2014 contact the tax assessors office 877-308-9103.

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 $28,100 for tax year 2012.  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 2012 tax year is $28,100, the owner's taxes will be limited to 4% of the owner's income. For an owner whose income exceeds the income eligibility limit the owner's taxes were limited to 5% of their income.

North Carolina Personal Property Taxes For Automobiles:

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

South Carolina Taxes

-  Sales Tax (prescription drugs are exempt) between 7% - 10% (City of Myrtle Beach is 9% and 10% for accomodations); Seniors over 85 years of age only pay 4%
-  Personal Income Tax is between 3% - 7% (Social Security income, Railroad Retirement income,    and disability retirement income due to permanent and total disability are Not taxed)
-  Personal Exemption and Standard Tax Deduction are taken from your Federal Tax Return and used within the State's simplified return.

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

NOTE: The lower 4% real estate property tax is not automatic!!! You must fill out a form and submit proof that you are a legal resident or you will be taxed at the 6% non-resident rate.

Homestead Exemption:  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 (803)898-5480. A form must be completed and medical proof must be provided.

100% Disabled Veterans are also entitled to pay NO Property Tax.

Non-Resident Property Taxes:

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.

Google