What about NC and SC Taxes? Is NC or SC Best for tax advantages?
Here, we’re going to break down some of the basic tax information for NC and SC Taxes. I’ll let you decide for yourself if NC or SC is best.
North Carolina Taxes
- North Carolina has an extremely user friendly tax system.
- 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 Taxes
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 NC and SC have a great quality of life, and favorable tax climates.
Overall, South Carolina is cheaper than North Carolina.
Make sure if you’ve decided you want to move to NC and SC, you consult the sources of information listed, as well as a tax professional.
Have a great week!
See You in the Carolinas,
Ultimate Guide To Finding Your Best Places To Live In NC and SC
Make Your NC and SC Dream Come True!
Bob Bencivenga is a professional site locator and location analyst for major corporations. Bob researches the growth of NC and SC to find the Best Places to Retire or Relocate that are still affordable.
Bob Does Not Sell Real Estate!
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