As a fiduciary financial advisor in South Carolina, Holland Capital builds written retirement plans that account for the state’s deductions and exemptions, then invests your savings to match. South Carolina clients work with us by video and phone, with in-person meetings by appointment at our Ballantyne office near the state line or at a meeting center closer to home.
South Carolina writes its own tax rules for retirees.
Lawmakers in Columbia set the income tax rates, the deductions you can claim at 65 and the property tax break for older homeowners. The rates changed again in 2026.
Each of those rules can change how much of a withdrawal you keep.
How South Carolina Taxes Retirement Income
For 2026, South Carolina taxes the first $30,000 of taxable income at 1.99% and taxable income above $30,000 at 5.21%. A law passed in 2026 set these rates for the full 2026 tax year.
South Carolina does not tax Social Security benefits. Three other rules can lower the tax on retirement income:
- Retirement income deduction. You can deduct up to $3,000 a year of qualifying retirement income before 65, and up to $10,000 a year from 65.
- Age 65 deduction. From the year you turn 65, you can deduct up to $15,000 of other South Carolina income. The retirement income deduction you claim reduces it.
- Military retirement pay. Military retirement income included in taxable income is exempt from South Carolina income tax at any age.
With some income taxed, some partly deducted and some exempt, the sequence of withdrawals can affect your tax bill over many years. See retirement planning for how we set that sequence.
The Homestead Exemption
South Carolina provides a homestead exemption for qualifying homeowners who are 65 or older, totally and permanently disabled, or legally blind. It exempts part of your home’s value from property tax. You must have lived in South Carolina for a full calendar year first, and you apply once through your county auditor.
For a higher-value home, the exemption helps, but the larger question is whether the house still fits the plan.
No Estate Tax
South Carolina does not have an estate tax. Large estates can still owe federal estate tax.
For your children, the bigger state tax question is usually income tax on money they withdraw from an inherited traditional IRA. We cover that in estate and wealth transfer planning.
Living in South Carolina, Working in North Carolina
Some York and Lancaster County residents cross into North Carolina for work. Their paychecks can involve two state returns: a nonresident return for North Carolina and a South Carolina return that counts every dollar, with a limited credit for the North Carolina tax.
How We Work Across South Carolina
Holland Capital Management is an independent registered investment adviser and a fiduciary. M. Chad Holland, CFA, CFP® works directly with clients and is responsible for the planning and advice.
Our office is at 15720 Brixham Hill Avenue in Ballantyne, a few miles from the South Carolina line. Video and phone calls handle most of the work, from the Upstate to the coast. In-person meetings are by appointment, at the office or at the meeting center named on your city page.
We start with the written plan. Our investment management follows it, and tax-efficient investing guides choices such as which account to sell from.
The first conversation is free. If there is work worth doing after that, we will define the scope and cost before you decide whether to move forward.
South Carolina Communities We Serve
The Charlotte Area
- fiduciary financial advisor in Fort Mill
- fiduciary financial advisor in Indian Land
- fiduciary financial advisor in Tega Cay
- fiduciary financial advisor in Rock Hill
- fiduciary financial advisor in Lake Wylie
The Midlands
- fiduciary financial advisor in Columbia
- fiduciary financial advisor in Lexington
- fiduciary financial advisor in Aiken
- fiduciary financial advisor in Irmo
The Lowcountry
- fiduciary financial advisor in Charleston
- fiduciary financial advisor in Mount Pleasant
- fiduciary financial advisor in Summerville
- fiduciary financial advisor in Hilton Head Island
- fiduciary financial advisor in Bluffton
- fiduciary financial advisor in Kiawah Island
The Upstate
- fiduciary financial advisor in Greenville
- fiduciary financial advisor in Greer
- fiduciary financial advisor in Spartanburg
- fiduciary financial advisor in Simpsonville
- fiduciary financial advisor in Mauldin
The Grand Strand
RETIREMENT ENGINEERING™
The Order Matters
Five retirement decisions and why timing matters.
Frequently Asked Questions
Are Pensions and IRA Withdrawals Taxed in South Carolina?
Generally, yes, at the state’s income tax rates, after the retirement income deduction. That deduction grows at 65. Social Security is not taxed, and military retirement pay is exempt.
Why Choose a Fiduciary Financial Advisor for a South Carolina Retirement?
Holland Capital acts as a fiduciary when providing financial planning and investment advice. In South Carolina, that means considering the state’s deductions and exemptions when deciding what to withdraw, and when.
Some advice can raise our pay, for example, moving a 401(k) into an account we manage. We say so before you decide.
Do You Serve South Carolina Clients from Charlotte?
Yes. Planning meetings are usually by video or phone. Each city page names where we meet in person, and our Ballantyne office is a short drive from York and Lancaster counties.
Photo: Clemson3564 / Wikimedia Commons / CC BY 3.0, cropped.
