Updated January 2026
South Carolina Veteran Benefits 2026
South Carolina offers several benefits for veterans and military retirees. Here is a summary of the key tax and property benefits available in SC for 2026.
South Carolina Highlights
- Full military retirement pay tax exemption
- Full property tax exemption for 100% P&T
- Free vehicle registration for disabled veterans
- SC Veterans Trust Fund
Income Tax Treatment
South Carolina has a state income tax.
Military Retirement Pay: South Carolina has fully exempted military retirement pay for retirees of all ages since tax year 2022.
Active Duty Pay: Active duty pay is exempt from South Carolina income tax.
VA Disability Compensation: VA disability compensation is tax-free at both the federal and state level in all 50 states. South Carolina does not tax VA disability payments.
Property Tax Exemption for Disabled Veterans in South Carolina
Type: Full exemption at 100%
South Carolina grants a full property tax exemption on the homestead (house and up to 5 acres, owner-occupied, titled solely to the veteran or jointly with spouse) for veterans with a 100% total and permanent service-connected disability. It is a true exemption (bill to zero), not a credit or deduction, with no value cap. Also exempts up to two private passenger vehicles. Surviving spouses gained expanded immediate eligibility under 2024 legislation.
| VA disability rating / category | What you get |
|---|---|
| 100% total and permanent service-connected disability | Full exemption from property tax on the homestead (house + up to 5 acres); plus exemption on up to two private passenger vehicles.Owner-occupied; titled solely to the veteran or jointly with spouse; VA certification of total and permanent service-connected disability. Apply via SCDOR MyDORWAY. |
- Income limit: None.
- Age requirement: None.
- Surviving spouse: Surviving spouse may claim immediately in the same manner as the veteran, regardless of whether the veteran ever applied/claimed it (per 2024 changes); continues while unremarried and sole ownership is maintained.
- Counts being paid at 100% via unemployability (TDIU)? Varies / not explicitly addressed — confirm with the assessor or state VA
Source: S.C. Code Ann. Sec. 12-37-220(B)(1) (and related veterans provisions) and a second official source. Verified June 2026 against primary sources.
To apply, contact your county assessor's office or the South Carolina Department of Veterans Affairs. You will typically need your VA disability rating letter (and often your DD‑214) and proof that the home is your primary residence.
Real estate vs. personal property: this benefit applies to real-estate (home/homestead) property tax. Personal-property taxes — such as the annual tax some states levy on vehicles — are separate and generally still apply, even at a 100% rating, unless your state specifically exempts them.
VA Healthcare in South Carolina
South Carolina has approximately 2 VA medical centers along with community-based outpatient clinics (CBOCs) throughout the state. Veterans enrolled in VA healthcare can receive care at any VA facility nationwide.
To find the nearest VA facility, visit VA.gov Facility Locator.