Side-by-side for American retirees in 2026.
Cheaper than its northern neighbor, with one of the most generous retirement income deductions in the country. Coastal retirement hubs and historic charm.
No state income tax, low cost of living, and four mild seasons. The mountains, lakes, and music capital make it one of the fastest-growing retirement destinations.
| Progressive, top 6.2% | Income tax | No state income tax |
| Exempt | Social Security | Exempt |
| $15K/person retirement deduction at 65+; Social Security fully exempt | Pension treatment | All retirement income state-tax-free |
| 0.53% | Property tax (effective) | 0.67% |
| 7.50% | Avg combined sales tax | 9.55% |
| 95.0 | Cost of living (US=100) | 90.3 |
| None | Estate / inheritance tax | None |
| Warm humid summers, mild winters. Low country (Charleston, Hilton Head) is hot and humid; upstate (Greenville) is cooler. | Climate | Four distinct seasons. Warm humid summers, mild winters with occasional snow. East Tennessee mountains cooler year-round. |
| Solid in major metros — MUSC (Charleston), Prisma Health (Greenville). More limited in rural areas. | Healthcare | Strong — Vanderbilt (Nashville), University of Tennessee Medical Center. Limited in rural areas. |
| Hilton Head Island, Charleston, Bluffton | Top retirement cities | Knoxville, Chattanooga, Crossville |
$50K homestead exemption + first $100K of home value exempt from school operating tax for 65+
Property tax freeze available for 65+ with income under ~$33K (varies by county); tax relief programs available
South Carolina: Cheaper than its northern neighbor, with one of the most generous retirement income deductions in the country. Coastal retirement hubs and historic charm. Tennessee: No state income tax, low cost of living, and four mild seasons. The mountains, lakes, and music capital make it one of the fastest-growing retirement destinations. The right choice depends on your income mix, climate preference, and whether state income tax matters more to you than property tax.
No, South Carolina does not tax Social Security retirement benefits.
No, Tennessee does not tax Social Security retirement benefits.
South Carolina's cost of living index is 95.0 (US = 100). Tennessee's is 90.3. Tennessee is cheaper on average.
Enter your retirement income and see the after-tax difference between South Carolina and Tennessee in 30 seconds.
Open tax estimator →Tax data current as of 2026 publication. Rates and rules change annually — verify with a CPA before relocating. This page is educational and not personalized tax or legal advice.