Tax Benefits: Making Spartanburg The Retirement Hub
Spartanburg, located in the Blue Ridge Mountains’ foothills, is a vibrant community with a lot to offer. Beautiful weather, favorable tax incentives, and dynamic community life are just reasons why retirees do retirement planning in Spartanburg, SC.
Furthermore, when visiting the Southern Carolina metropolis, you’ll find a blend of southern elegance, rich heritage, and trendy flair adding to the ambiance.
Did You Know?
In other sections of the state, the cost of living is significantly cheaper. According to statistics, the cost of living in Spartanburg, in the state’s western region, is 21.60 percent lower than the national average. The average household in Spartanburg is $75,340, indicating that housing prices in the county are also common.
An Almost Tax-Free Retirement
The tax-friendly legislation in Spartanburg is one of the main reasons why many seniors have opted to retire there and hence, look out for retirement planning in Spartanburg, SC. South Carolina is typically considered one of the country’s best tax-friendly counties. This is primarily attributable to the fact that Social Security benefits are not taxed.
Furthermore, regardless of political disagreements, social security has always been and will continue to be necessary for everyone since it provides a fundamental source of income that is useful when one cannot work.
Social Security, therefore, continues to be a vital income source for retirees. As a result, if you live in Spartanburg, you will not have to pay a higher tax than if you lived in another state. Let’s look into all the taxes in detail:
Income Tax in South Carolina
South Carolina has an income tax with several favorable tax breaks for retirees. It has the top tax rate in the nation, at 7%.
- Retired individuals under 65 can reduce up to $3,000 from their income taxes.
- People over 65 can subtract up to $10,000 in income in retirement on their statewide tax filings. All pension income, notably private and state pensions, IRAs, and Keogh programs, are eligible for this reduction.
- People over 65 can reduce up to $15,000 off their income taxes in South Carolina. This benefit is in contrast to the $10,000 deductible for pension income.
That implies a retiree in South Carolina can avoid up to $25,000 from their income taxes.
Sales Tax in South Carolina
South Carolina’s statutory sales tax rate is 5%. However, the government’s counties levy local sales taxes and raise this rate.
The sales tax rate differs by county, yet the maximum overall sales tax rate is 8%, while the lowest percentage is 6%. A 16.8 cents per gallon tax on gasoline is also imposed in South Carolina.
Food is excluded from the sales tax, but dentures, prescription medications, and hearing devices are not. The sales tax exemption for people over 85 is 1%.
Property Tax in South Carolina
In South Carolina, the property tax for residential real estate is 4% of the appraised value. This price includes the house and up to five acres of property. In South Carolina, the first $100,000 in house price is free from local school real estate taxes. Homeowners over 65 are entitled to a $20,000 homestead estate tax-exempt status.
In South Carolina, all automobiles, notably cars, motorbikes, and recreational vehicles, are assessed as properties. Approximately 3% of the vehicle’s Blue Valuation is charged.
In the End
South Carolina would be an outstanding low-cost retirement alternative for an individual or couple with a strong source of income. It has a reasonable cost of living, low taxation, and a diverse range of recreational activities.