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.
Big, varied, and tax-friendly. No state income tax, lower cost of living than Florida, and three distinct retirement regions (Hill Country, Gulf Coast, North Texas).
| 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) | 1.63% |
| 7.50% | Avg combined sales tax | 8.20% |
| 95.0 | Cost of living (US=100) | 92.6 |
| None | Estate / inheritance tax | None |
| Warm humid summers, mild winters. Low country (Charleston, Hilton Head) is hot and humid; upstate (Greenville) is cooler. | Climate | Highly varied. Hot humid summers statewide. Hill Country mild winters; Panhandle has snow; Gulf Coast similar to Florida. |
| Solid in major metros — MUSC (Charleston), Prisma Health (Greenville). More limited in rural areas. | Healthcare | Strong in major metros — MD Anderson Cancer Center (Houston), Houston Medical Center, Dallas-area systems. Rural Texas healthcare is weaker. |
| Hilton Head Island, Charleston, Bluffton | Top retirement cities | Fredericksburg, San Antonio, Georgetown |
$50K homestead exemption + first $100K of home value exempt from school operating tax for 65+
$100K homestead exemption (2023) + senior 65+ school tax freeze + additional $10K senior exemption
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. Texas: Big, varied, and tax-friendly. No state income tax, lower cost of living than Florida, and three distinct retirement regions (Hill Country, Gulf Coast, North Texas). 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, Texas does not tax Social Security retirement benefits.
South Carolina's cost of living index is 95.0 (US = 100). Texas's is 92.6. Texas is cheaper on average.
Enter your retirement income and see the after-tax difference between South Carolina and Texas 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.