While choosing the right retirement place you must take several factors into consideration. One of them being the tax aspect. What makes settling down in South Carolina very exciting and at the same time profitable is the tax deductions that retired citizens can avail of, leading to considerable amount of savings on payable tax. Once you move into South Carolina, if you decide to sell off your property elsewhere, you will not have to pay tax on the sale here.

From the first year of your stay, you can receive qualified retirement income and get a deduction of upto $3,000 till the age of 65. At 65, all the residents qualify for a deduction of upto $15,000 from any income. A deduction of 44% is given on net long term capital gains. Interest gained from federal obligations is deductable.

If you shift to South Carolina some time in between a year, you shall be considered a part year resident. As a part year resident you can choose to be a full-year resident or a non-resident. If you pick the former, you can claim all your income as though you’ve been living here the entire year and take a credit for any tax paid in other states. If you choose to be considered as the latter, you must only report the income earned in South Carolina.