South Carolina Veteran Benefits 2026: Property Tax Exemptions and Military Retired Pay Tax

The state benefits South Carolina gives veterans and their surviving spouses: property tax exemptions, how the state taxes military retired pay, and other benefits, each with who qualifies, the amount, how to apply and the official source.

South Carolina fully exempts from property tax the legal-residence home (and up to five acres) of a veteran the VA rates totally and permanently disabled from a service-connected disability, plus two private passenger vehicles. An unremarried surviving spouse can keep the home exemption and one vehicle. Since tax year 2022, all military retirement income included in SC taxable income is deductible, so it is fully exempt from state income tax. Other state benefits include free disabled-veteran license plates, free tuition for children of qualifying wartime veterans, free three-year disability hunting/fishing licenses, and state veterans nursing homes. (sources)

Official sources Checked against official sources on November 4, 2026. This page lists only benefits confirmed on an official state or federal page; counties and cities may offer more.

Property tax exemptions
Military retired pay tax
Other veteran benefits
Common questions

Property tax exemptions for veterans in South Carolina

South Carolina property tax benefits for veterans and surviving spouses (checked November 4, 2026)
Benefit	Who qualifies	Amount	How to apply	Source
Disabled veteran home exemption	A veteran the VA rates totally and permanently disabled from a service-connected disability (permanent and total, not a percentage rating alone). The home must be the veteran's legal residence, owned solely, in fee or for life, or jointly with a spouse. No age or income limit. Under the 2024 expansion, the exemption can start in the year the disability occurs, and it can be claimed retroactively for up to the two prior years if the taxes were paid on time.	Full exemption on the home and up to five acres of land	Apply to SCDOR through MyDORWAY (Exempt Property Application), or mail Form PT-401-I to SCDOR, Government Services Division, PO Box 125, Columbia, SC 29214-0720. Include a VA letter showing the P&T service-connected rating and its effective date, the recorded deed, and proof that the county assessor approved legal residence. Processing takes about 10 to 12 weeks.	SCDOR
Surviving spouse of a disabled veteran: home exemption	An unremarried surviving spouse of a qualifying totally and permanently disabled veteran who lives in the home and owns it in fee or for life (including a home later acquired by the spouse). The spouse can claim it even if the veteran never applied. Also covers the unremarried surviving spouse of a service member killed in action who lives in and owns the home.	Full exemption on the home (same terms as the veteran)	MyDORWAY Exempt Property Application or Form PT-401-I to SCDOR	SC Code 12-37-220(B)(1)(b), (f)(iii) (see also SCDOR Tax Tip for veterans)
Disabled veteran vehicle exemption	A veteran with a total and permanent service-connected disability. Covers vehicles owned or leased by the veteran, or by a spouse who lives with the veteran with the vehicle registered at that address, or titled jointly. Vehicle taxes must come due on or after the date the P&T rating was issued. An unremarried surviving spouse keeps the exemption on one vehicle for life or until remarriage.	Full exemption on two private passenger vehicles (one vehicle for a surviving spouse)	MyDORWAY Exempt Property Application or Form PT-401-I, with the VA letter and the SC registration card, bill of sale, or title	SCDOR
Medal of Honor recipient / POW exemption	Medal of Honor recipients, and prisoners of war from World War I, World War II, the Korean Conflict, or the Vietnam Conflict. An unremarried surviving spouse is covered on the same terms.	Full exemption on the home and a lot of up to one acre, plus two private passenger vehicles (for POWs, vehicles of three-quarters of a ton or less)	MyDORWAY Exempt Property Application or Form PT-401-I to SCDOR	SCDOR

Is military retired pay taxed in South Carolina?

South Carolina state income tax on military retired pay (checked November 4, 2026)
Treatment	Amount or limit	Source
Fully exempt. Since tax year 2022 an individual may deduct all military retirement income included in South Carolina taxable income (SC Code 12-6-1171). A surviving spouse may also deduct military retirement benefits and Dependency and Indemnity Compensation tied to the deceased spouse's service, plus their own retirement deduction. A taxpayer who takes the military deduction has the general retirement deduction ($3,000 under 65, $10,000 at 65+) reduced by that amount (12-6-1170(C)). Separately, Guard/Reserve pay and retirement for drill and annual-training time is excluded from SC gross income (12-6-1120(7)).	100% of military retirement income; no dollar cap and no age requirement (SC Code 12-6-1171)	scstatehouse.gov

For the dollars this treatment adds to (or saves on) a retiree’s state tax in 2026, see the military retirement tax by state study; for the pension itself, the military retirement pay calculator.

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Other South Carolina veteran benefits

Vehicles and license plates

South Carolina: vehicles and license plates for veterans
Benefit	Who qualifies	Amount	Source
Disabled Veteran special license plates (standard, wheelchair, Disabled Female Veteran, and Disabled Female Veteran wheelchair)	A veteran who is totally and permanently disabled from a service-connected disability, documented by a VA disability-rating letter. The veteran must be one of the vehicle's registrants. The wheelchair versions also require handicapped-parking eligibility.	Exempt from the regular motor vehicle registration fee; up to three plates; renewed every two years	scstatehouse.gov
Gold Star Family, Prisoner of War, and Purple Heart special license plates	The award recipient (POW plates also go to the spouse; Gold Star plates go to immediate family), with a DD-214, NGB Form 22, or official orders	Exempt from the regular registration fee; up to three plates per award type; free parking at metered or timed spaces	scstatehouse.gov

Hunting, fishing and other licenses

South Carolina: hunting, fishing and other licenses for veterans
Benefit	Who qualifies	Amount	Source
Three-year disability combination (hunting and fishing) or disability fishing license	A resident domiciled in SC for at least 365 days who is determined disabled and receives disability benefits from the Veterans Administration (or Social Security, CSRS, SC Retirement System, Railroad Retirement, or Medicaid). Must recertify to renew.	Free (no cost), valid for three years	scstatehouse.gov

Education

South Carolina: education for veterans
Benefit	Who qualifies	Amount	Source
Free tuition for children of certain wartime veterans	A child aged 26 or younger pursuing an undergraduate degree, whose parent served honorably during a federally defined war period and was killed in action, died in service, died of a service-connected disease or disability, was a POW, is permanently and totally disabled (VA, from any cause), received the Medal of Honor, is missing in action, or received the Purple Heart. A state residency test applies. Approval is by the SC Department of Veterans' Affairs. The section was rewritten by 2026 Act No. 135, effective May 15, 2026.	Full tuition waiver at any state-supported college, university, or technical college	scstatehouse.gov

State veterans homes

South Carolina: state veterans homes for veterans
Benefit	Who qualifies	Amount	Source
South Carolina veterans homes (long-term nursing care)	A South Carolina citizen veteran discharged under other than dishonorable conditions who needs long-term nursing care. Admission criteria are set by the SC Department of Veterans' Affairs.	Fees set by SC Department of Veterans' Affairs; it may accept assignment of state or federal benefits as full or partial payment	scstatehouse.gov

Common questions

Does South Carolina have a property tax exemption for disabled veterans?

South Carolina lists 4 veteran property tax benefits. The main one: Disabled veteran home exemption. Who qualifies: A veteran the VA rates totally and permanently disabled from a service-connected disability (permanent and total, not a percentage rating alone). The home must be the veteran's legal residence, owned solely, in fee or for life, or jointly with a spouse. No age or income limit. Under the 2024 expansion, the exemption can start in the year the disability occurs, and it can be claimed retroactively for up to the two prior years if the taxes were paid on time.. Amount: Full exemption on the home and up to five acres of land (SCDOR - Exempt Property (with Tax Tips for Veterans rack card; SC Code 12-37-220(B)(1))).

How do I apply for the South Carolina veteran property tax exemption?

Apply to SCDOR through MyDORWAY (Exempt Property Application), or mail Form PT-401-I to SCDOR, Government Services Division, PO Box 125, Columbia, SC 29214-0720. Include a VA letter showing the P&T service-connected rating and its effective date, the recorded deed, and proof that the county assessor approved legal residence. Processing takes about 10 to 12 weeks. (SCDOR - Exempt Property (with Tax Tips for Veterans rack card; SC Code 12-37-220(B)(1))).

Does South Carolina tax military retirement pay?

Fully exempt. Since tax year 2022 an individual may deduct all military retirement income included in South Carolina taxable income (SC Code 12-6-1171). A surviving spouse may also deduct military retirement benefits and Dependency and Indemnity Compensation tied to the deceased spouse's service, plus their own retirement deduction. A taxpayer who takes the military deduction has the general retirement deduction ($3,000 under 65, $10,000 at 65+) reduced by that amount (12-6-1170(C)). Separately, Guard/Reserve pay and retirement for drill and annual-training time is excluded from SC gross income (12-6-1120(7)). Amount or limit: 100% of military retirement income; no dollar cap and no age requirement (SC Code 12-6-1171) (scstatehouse.gov).

What other benefits do veterans get in South Carolina?

Disabled Veteran special license plates (standard, wheelchair, Disabled Female Veteran, and Disabled Female Veteran wheelchair) (scstatehouse.gov); Gold Star Family, Prisoner of War, and Purple Heart special license plates (scstatehouse.gov); Free tuition for children of certain wartime veterans (scstatehouse.gov); Three-year disability combination (hunting and fishing) or disability fishing license (scstatehouse.gov); South Carolina veterans homes (long-term nursing care) (scstatehouse.gov). Who qualifies and the amounts are in the tables above.

Sources

Every row above is copied from the official page linked beside it. Benefits change with new laws and local decisions, so confirm the amount and the deadline with the office that runs the program before you apply. QuantCalc is calculation software, not legal, tax or benefits advice. Last updated November 4, 2026.

South Carolina senior property tax relief → South Carolina state income tax for retirees → Veteran benefits in every state → Military retirement tax by state 2026 → Military retirement pay calculator → 2026 VA disability rates → Military retiree and VA COLA 2027 → VA loan limits 2026 →