NC And SC Tax Breaks
Tax Benefits of North Carolina and South Carolina
For most people, one of the greatest advantages of relocating or retiring to North Carolina or South Carolina is the reduction of their tax burden.
I'm not a tax expert however, I'd like to break down some of the basic tax information for North and South Carolina.
In your search for Your best place to relocate or retire in North Carolina or South Carolina, if affordability is high on your list of reasons, you need to know the tax differences between states.
North Carolina has an extremely user friendly tax system and great saving can be found.
The sales tax rate in North Carolina is 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.
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:
- 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.
The good news is Social Security benefits are fully exempt.
However keep in mind that 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.
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.
South Carolina has a sales tax rate of 5%, but local governments can approve a local tax as well.
The maximum for that addition is 2%, 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.
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. Like North Carolina, South Carolina does not tax Social Security benefits.
Both North Carolina and South Carolina have a great quality of life, and favorable tax climates.
However, overall South Carolina is less expensive than North Carolina.
If your interested in relocating or retiring to either state make sure you consult the sources of information listed below as well as a tax professional in the state you have decided is your best place to live.
For those of you that are retiring to the Carolina, take a moment and read “How to Make the Most of Your Money in Retirement”.
information on North Carolina taxes, visit www.dornc.com is easy to use and complete with many different FAQ’s, and the toll-free information line (877-252-3052) has a great wealth of information for individuals looking for help with their taxes.
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.
For more information on South Carolina taxes, visit www.sctax.org, or call 803-898-5464
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About Bob Bencivenga
|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.|
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