South Carolina Tax Exemptions: Homestead, Veterans, and Retirement

South Carolina tax exemptions can eliminate or reduce property taxes, income taxes, sales taxes, and fuel taxes for homeowners age 65 and older, disabled residents, veterans, retirees, farmers, manufacturers, and nonprofits. The most widely claimed is the homestead exemption, which erases property taxes on the first $50,000 of a primary home’s fair market value. Other programs target narrower groups, and each has its own eligibility rules and application office.

Homestead Exemption for Age 65, Disability, or Blindness

The homestead exemption wipes out all property taxes on the first $50,000 of your primary home’s fair market value. It covers county, municipal, school, and special assessment property taxes, though it does not eliminate fees like solid waste or road-use charges.¹ Because South Carolina assesses owner-occupied primary residences at just 4% of fair market value (compared with 6% for other properties), the exemption can wipe out the tax bill entirely on many modest homes.²

You qualify if you meet all three of these conditions as of December 31 of the year before the tax year you’re claiming:

You are at least 65, have been declared totally and permanently disabled by a state or federal agency with authority to make that determination, or have been certified legally blind by a licensed ophthalmologist.
You have been a legal resident of South Carolina for at least one year.
You hold fee simple title, a life estate, or are the beneficiary of a trust that holds title to the home.

Apply at your county auditor’s office. Bring a birth certificate or South Carolina driver’s license if you’re applying based on age, documentation from the certifying agency if applying based on disability, or a letter from a licensed ophthalmologist if applying based on blindness.¹ If you and your spouse jointly own the home, only one of you needs to meet the criteria. Once approved, the exemption stays in place unless you move or stop qualifying. If you could have qualified in the prior year but didn’t apply, you may be allowed to claim that year retroactively.

Exemptions for Residents With Disabilities

South Carolina offers additional relief beyond the homestead exemption for specific disabilities, though the rules are narrower than many people expect.

Paraplegic and Hemiplegic Homeowners

If you are paraplegic or hemiplegic, your dwelling and the lot it sits on (up to one acre) are fully exempt from property taxes. You must own the home in fee simple, hold a life estate, or own it jointly with your spouse. A surviving spouse who does not remarry keeps the exemption.² There is no age requirement.

Vehicle Exemption for Guardians

If you are the legal guardian of a minor child who is blind or required to use a wheelchair, one personal motor vehicle you own or lease is exempt from vehicle property tax.²

Social Security Disability Does Not Qualify on Its Own

A common misconception trips people up here. Being rated disabled through Social Security does not, by itself, qualify you for a South Carolina property tax exemption. The Department of Revenue is explicit that there is no property tax exemption for people disabled through Social Security under SC Code Section 12-37-220.² You may still qualify for the homestead exemption if a state or federal agency with authority to declare total and permanent disability has done so, but the SSDI award alone doesn’t automatically meet that standard.

Sales Tax on Prosthetic and Medical Devices

Prosthetic devices sold by prescription are exempt from the state’s 6% sales tax, provided the device actually replaces a missing part of the body. Dental prosthetics are also exempt and do not require a prescription. Durable medical equipment like wheelchairs and mobility aids, however, is only exempt when purchased directly with Medicaid or Medicare funds under programs where state or federal law prohibits charging the tax.³ Paying out of pocket for durable medical equipment does not get you the exemption.

Veteran and Military Exemptions

South Carolina provides some of the most generous military tax benefits in the country, covering property, vehicle, and income taxes.

Property and Vehicle Taxes for Disabled Veterans

Veterans with a total, permanent, service-connected disability can claim a property tax exemption on their home and up to five acres, plus up to two private passenger vehicles.⁴ The exemption begins in the year the disability rating is issued. Medal of Honor recipients and former prisoners of war from World War I, World War II, the Korean Conflict, or the Vietnam Conflict qualify for a similar exemption covering a home and up to one acre, plus two vehicles.

Surviving spouses of disabled veterans can claim the exemption immediately, in the same manner as the veteran, regardless of whether the veteran had previously applied.⁴ South Carolina law enforcement officers and firefighters with a total and permanent service-connected disability also qualify for a property tax exemption.

Apply through the South Carolina Department of Revenue with your DD-214 and VA disability certification. Your county auditor’s office can help with the process.⁵

Military Retirement and Active-Duty Pay

All military retirement pay included as taxable income is fully exempt from South Carolina individual income tax, regardless of the recipient’s age. A surviving spouse receiving military retirement income for a deceased spouse can also claim the deduction.⁶ There is no dollar cap.

Active-duty service members stationed in South Carolina who maintain legal residence in another state do not pay South Carolina income tax on their military wages, consistent with the federal Servicemembers Civil Relief Act.⁷

Retirement Income Deductions

Even without military service, retirees get income tax deductions that scale with age. If you are under 65, you can deduct up to $3,000 per year of qualifying retirement income from plans defined under Internal Revenue Code Sections 401, 403, 408, and 457, and from public employee retirement plans.

At age 65 and older, the deduction rises to $10,000 of qualifying retirement income. On top of that, all South Carolina taxpayers 65 or older can claim a separate deduction of up to $15,000 against any taxable income. Amounts already claimed as a retirement income deduction reduce the $15,000 deduction dollar for dollar, so the combined total cannot exceed $15,000 per taxpayer. The deductions apply to otherwise taxable distributions from qualified retirement plans, including 401(k)s, IRAs, 403(b)s, and government pensions, but not to distributions subject to early withdrawal penalties.⁸

Farmer Sales Tax Exemption and the SCATE Card

Farm operations get sales tax exemptions on a wide range of equipment and supplies. Machinery used in planting, cultivating, or harvesting farm crops for sale is exempt from the state’s 6% sales tax, along with irrigation equipment, animal-drawn implements, and machinery for constructing terraces and drainage systems.⁹ Feed, seed, fertilizer, and containers also qualify.

To purchase eligible items tax-free, you need a South Carolina Agriculture Tax Exemption (SCATE) card. It replaced the old Form ST-8F exemption certificate on July 1, 2022. Here is where people trip up: the SCATE card is issued by the South Carolina Department of Agriculture, not the Department of Revenue. Applications, renewals, and payments run through SCATEcard.com.¹⁰ Present your valid card at the first purchase with each retailer; later purchases from that same retailer can rely on the previously submitted card as long as it remains valid.⁹ Misuse can result in repayment of all improperly avoided taxes plus interest and penalties.

Fuel Tax Refunds for Off-Highway and Farm Use

South Carolina charges a motor fuel user fee of $0.28 per gallon on gasoline and diesel, plus small environmental and inspection fees. Suppliers charge the fee on all fuel regardless of use, but buyers who use fuel for exempt purposes can claim a refund.¹¹

Exempt uses include diesel fuel and kerosene used as heating oil, in trains, or in equipment not licensed as a motor vehicle. Gasoline used exclusively to operate tractors or farm equipment in farm operations also qualifies, provided none of the fuel is used in a vehicle driven on public roads.¹² Farmers claiming a gasoline refund file under Section 12-28-790. Keep detailed usage records and receipts.

Manufacturing Property Tax

Manufacturers get an exemption on 42.8571% of the assessed property tax value of their manufacturing property, subject to a statewide cap of $170 million per fiscal year; if total claims exceed that cap, exemptions are proportionally reduced. Property under a fee-in-lieu agreement does not qualify.¹³

Separately, manufacturers investing $50,000 or more qualify for a five-year abatement of county operating property taxes, which depending on the county typically offsets 20% to 50% of total millage. The abatement does not cover the school portion, so school district taxes continue during the abatement period.¹³ Apply through the Department of Revenue with documentation verifying manufacturing use.¹⁴

Nonprofit Property and Sales Tax Exemptions

Nonprofits can qualify for both a property tax exemption and a sales tax exemption, but the two run on separate tracks.

Property owned by charitable, religious, or educational organizations may be fully or partially exempt if the property is used exclusively for the organization’s exempt purpose. The Department of Revenue reviews and approves these requests. You need an application, proof of 501(c)(3) status, and documentation showing how the property serves its exempt function.² The word “exclusively” matters: if part of a property is used for unrelated purposes, that portion may remain taxable.

For sales tax, nonprofits apply for specific exemptions through MyDORWAY, the Department of Revenue’s online portal, and must have a Sales and Use Tax account first.¹⁵ Review SC Code Section 12-36-2120 to see which exemptions match your activities. One distinction catches organizations off guard: certain nonprofit exemption certificates authorize tax-free purchases of items the organization will resell, not items it will consume or use internally. Improper use can result in back taxes, interest, and civil or criminal penalties.¹⁶

No State Estate or Inheritance Tax

South Carolina imposes no state estate tax and no inheritance tax. Heirs owe nothing to the state regardless of the estate’s size. Federal estate taxes may still apply, but only for estates exceeding $15,000,000 per individual in 2026, and married couples can effectively shield up to $30,000,000 combined through portability of the unused exclusion.¹⁷ For most South Carolina families, no estate tax is owed at either level.

Where to Apply and How to Appeal

The right office depends on the exemption:

Homestead, disability, and veteran property tax exemptions: county auditor’s office, with the relevant documentation (birth certificate, disability certification, DD-214, VA rating letter). For the homestead exemption, you must also apply to the governing body of your municipality if the home is within city limits.
Manufacturing property tax: South Carolina Department of Revenue, with documentation verifying manufacturing use.
Agricultural sales tax exemption: South Carolina Department of Agriculture, through SCATEcard.com.
Nonprofit sales tax exemption: Department of Revenue through MyDORWAY, after opening a Sales and Use Tax account.
Fuel tax refunds: Department of Revenue, with receipts and usage logs.

Some exemptions require periodic renewal, and missing a deadline means losing the benefit for that tax year. If an application is denied, you can appeal. Within 30 days of the county board’s written decision, either the taxpayer or the county assessor may request a contested case hearing before the Administrative Law Court.¹⁸

1
South Carolina Department of Revenue. Individual Property Tax Policy Manual – Chapter 5
2
South Carolina Department of Revenue. Exempt Property
3
South Carolina Department of Revenue. Policy Manual – Chapter 20: Medicine, Prosthetics and Medical Supplies
4
South Carolina Department of Revenue. Veterans – Learn More About SC Property Tax Exemptions
5
South Carolina Department of Revenue. SC Expands Property Tax Exemption for Disabled Veterans
6
South Carolina Department of Revenue. Retirees – Lower Your Individual Income Tax Bill With These Five Tips
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South Carolina Department of Revenue. SC Revenue Ruling 06-1 – Nonresident Military Servicemembers
8
South Carolina Department of Revenue. IIT FAQs
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South Carolina Department of Revenue. Tax Exemptions for Farmers – Frequently Asked Questions and List of Eligible Items
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South Carolina Department of Agriculture. SCATE
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South Carolina Department of Revenue. Motor Fuel
12
South Carolina Legislature. South Carolina Code 12-28-710 – Exemption From the User Fee on Motor Fuel
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South Carolina Department of Commerce. Local Property Taxes and Incentives
14
South Carolina Department of Revenue. Manufacturing Property Tax
15
South Carolina Department of Revenue. Sales Tax Exemptions
16
South Carolina Department of Revenue. SC Revenue Procedure 03-3 – Exemption Certificates – Sales by Certain Nonprofit Organizations
17
Internal Revenue Service. What’s New – Estate and Gift Tax
18
South Carolina Legislature. South Carolina Code 12-60-2540 – Contested Case Hearing; Time for Requesting Following Board’s Decision