Better Taxes…North Carolina or South Carolina?
For most people, one of the greatest advantages and why people are choosing as a best place to retire or relocate to North Carolina or South Carolina is the reduction of their tax burden.
Here, we’re going to break down some of the basic tax information for North Carolina and South Carolina.
North Carolina
North Carolina has an extremely user friendly tax system.
In addition, North Carolina has steadily been increasing the number of filing options that can be carried out online. There are walk-in centers where tax-payers can go for assistance, located in many of the major cities.
North Carolina has a sales tax rate of 7%, except for Mecklenburg County, which has a rate of 7.5%, due to a higher local tax rate. Property taxes are based on varying millage rates, depending on the town, or municipality you live in. Great savings can be found here.
North Carolina has 3 brackets for income tax, starting at 6% of the first $12,750 and moving up to 7.75% of anything over $60,000.
Deductions in North Carolina for state income taxes are as follows: the standard deduction is $3,000 for singles, $5,000 for a married joint return. The public pension exclusion is $4,000 per taxpayer.
If you’re receiving both public and private pensions, the private pension exclusion is $2,000 per taxpayer. Social Security benefits are fully exempt.
In lieu of a state sales tax on automobiles, North Carolina collects a 3% Highway Use Tax, based on the assessed value of the vehicle.
South Carolina
According to the US Bureau of the census, South Carolina has one of the lowest per capita tax rates in the country. Maybe this is why so many people appreciate the Palmetto State.
One of the perks of living and raising a family in South Carolina is that parents, guardians, or students can receive partial credit on tuition fees paid to a South Carolina university, up to $850.
Another favorable exclusion South Carolina tax payers enjoy is that the first $100,000 valuation of a home is exempt from paying school taxes. For more information on South Carolina taxes, visit www.sctax.org, or call 803-898-5464.
South Carolina has a sales tax rate of 6%, but local governments can approve a local tax as well. The maximum for that addition is 1%, so the maximum sales tax in South Carolina is 7%.
As in North Carolina, property taxes are based on a millage rate, which varies by state and municipality. In my “Ultimate Guide to Finding Your Best Places to Live in the Carolinas”, I compare real estate taxes for 3 different prices homes, in 90 different towns in North and South Carolina.
One of the perks of retiring to South Carolina is that there is a $50,000 homestead exemption on property tax for residents 65 and older.
South Carolina has 6 income tax brackets. They start at 2.5% of the first $2,280 earned, and rise to 7% of anything over $11,400.
Exclusions include a public pension exclusion of $3,000 for residents under 65, and $10,000 for residents over 65. The same holds true for private pensions. South Carolina does not tax Social Security benefits.
Both North Carolina and South Carolina have a great quality of life, and favorable tax climates.
Overall, South Carolina is cheaper than North Carolina.
People interested in moving to either state should consult the sources of information listed, as well as a tax professional.
About Bob Bencivenga
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Bob Bencivenga is a professional site locator and location analyst for major corporations and has been researching the growth of NC and SC to find the Best Places to Retire or Relocate that are still affordable. |
| Visit his blog The Carolina Report and sign up for FREE updates by email,his FREE Affordable Best Places To Live Report and, get FREE Expert Advice on how to find Your Best Place to Retire or Relocate to in North Carolina and South Carolina, additional resources, and a lot more.
Bob does not sell real estate. |
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