South Carolina has built one of the stronger veteran benefit packages in the Southeast. Military retirement pay has been fully exempt from state income tax since 2022 — no age threshold, no income cap. Permanently and totally disabled veterans pay zero property tax on their home. Children of eligible wartime veterans can attend any South Carolina state college or university tuition-free. And the state operates six veterans nursing homes spread across the Lowcountry, Midlands, and Upstate regions.
With roughly 390,000 veterans and major installations including Fort Jackson, Shaw Air Force Base, MCAS Beaufort, and Marine Corps Recruit Depot Parris Island, South Carolina has both a deep military culture and a legislature that has matched it with substantive benefits. Here’s what’s available in 2026.
USMilitary.org is an independent educational resource, not affiliated with the South Carolina Department of Veterans’ Affairs, the VA, or any government agency. For official benefit information, visit scdva.sc.gov.
- Military retirement pay is 100% exempt from South Carolina income tax — no age requirement, no income cap (since 2022)
- Totally and permanently disabled veterans receive a complete property tax exemption on their home and up to 5 acres, retroactive up to two prior tax years
- Children (up to age 26) of wartime veterans who were killed in action, totally disabled, POW/MIA, or Medal of Honor/Purple Heart recipients may attend SC state institutions tuition-free
- The SC National Guard College Assistance Program (CAP) pays up to $12,000/year at state institutions, with a $25,000 lifetime cap
- South Carolina operates six state veterans nursing homes — Anderson, Columbia, Walterboro, Florence, Gaffney, and Sumter
- Totally disabled veterans are also exempt from property taxes on up to two private vehicles
Table of Contents
- Income Tax Benefits
- Property Tax Exemptions
- Education Benefits
- Employment Preferences
- State Veterans Nursing Homes
- Vehicle and License Benefits
- State Veterans Cemetery
- Surviving Spouse Benefits
- Major Military Installations
- How to Access SC Veteran Benefits
- Frequently Asked Questions
Income Tax Benefits
Military Retirement Pay — Fully Exempt
South Carolina does not tax military retirement pay. The full exemption has been in place since the 2022 tax year and applies regardless of age or income — no earned income requirement, no phase-in, no cap. This makes South Carolina one of the more competitive states in the Southeast for military retirees.
The exemption covers all branches of the U.S. Armed Forces. Survivor Benefit Plan (SBP), Reserve Component Survivor Benefit Plan (RCSBP), and Retired Serviceman’s Family Protection Plan (RSFPP) payments are also fully exempt from South Carolina income tax.
A bill introduced in the South Carolina Senate (S.64, 2025-2026 session) would expand the definition of qualifying retirement income to cover all military retirement, including first responders and commissioned USPHS/NOAA officers — worth monitoring if that applies to your situation.
National Guard and Reserve Pay
Income received by South Carolina National Guard and Reserve members for weekend drills, inactive duty training, and up to 14 days of annual training is exempt from state income tax. Combat zone pay is also fully exempt for all service members.
Active Duty Pay
Active duty pay for South Carolina residents is generally taxable, with the exception of combat zone pay. Nonresident service members stationed in South Carolina on orders do not owe state income tax on their military pay. Under the Military Spouse Residency Relief Act (MSRRA), military spouses who maintain a different home state domicile are not subject to South Carolina income tax on wages earned here.
For a full picture of military pay structure, see our 2026 Military Pay Charts.
Property Tax Exemptions
Totally Disabled Veterans — Full Home and Vehicle Exemption
South Carolina veterans who are permanently and totally disabled due to a service-connected disability receive a complete exemption from property taxes on their primary residence and up to 5 acres of surrounding land. The exemption is administered through the SC Department of Revenue (SCDOR).
A key improvement in recent years allows qualifying veterans to apply retroactively for up to two prior tax years — provided property taxes were paid on time. Veterans applying in 2026 can potentially recoup overpaid taxes back to 2024.
The exemption also covers two private passenger vehicles owned by the disabled veteran (or the veteran’s spouse, if the spouse resides with the veteran and the vehicle is registered at the same address). It transfers to a qualifying unremarried surviving spouse and may also follow them to a new home.
A bill introduced in the South Carolina House in January 2026 (HB 4700) would create a proportional exemption for veterans rated below 100% — a veteran rated 70% would receive a 70% exemption. As of this writing it remains in committee, but it represents a meaningful potential expansion worth following.
General Homestead Exemption
South Carolina’s general homestead exemption — which removes the first $50,000 of fair market value from property tax calculations — is available to residents who are 65 or older, totally and permanently disabled (as determined by SSA, VA, or other qualifying agency), or legally blind. Veterans qualifying under a VA total disability rating may use this as a baseline benefit even if they don’t meet the service-connected standard for the full exemption above.
Veterans considering homeownership in South Carolina should also review VA loan benefits — no down payment required, no PMI. See our VA Loan Guide for details.
Education Benefits
Free Tuition for Children of Certain Wartime Veterans
South Carolina provides a tuition waiver at any state-supported college, university, or post-secondary technical education institution for children of qualifying wartime veterans. Children must be age 26 or under and enrolled as undergraduates. The veteran must have been a South Carolina resident at the time of entry into service (and still resides in SC), or have been a resident for at least one year prior to the application.
The veteran must meet one of the following criteria:
- Killed in action or died while in service
- Died from a service-connected disability
- Permanently and totally disabled as determined by the VA
- Prisoner of war or missing in action
- Congressional Medal of Honor recipient
- Purple Heart recipient
This covers tuition only — fees, room, board, and books are not included. Eligible institutions include the University of South Carolina (all campuses), Clemson, The Citadel, and all SC technical colleges. Applications go through the SCDVA Education office at (803) 647-2434.
SC National Guard College Assistance Program (CAP)
The SC National Guard CAP provides tuition and fee assistance to active drilling members of the SC Army and Air National Guard:
- Army Guard: Up to $12,000 per academic year at state-supported institutions; $25,000 lifetime cap
- Air Guard: Up to $11,000 per academic year for two-year programs at two- or four-year institutions; up to $5,500 at four-year institutions per academic year
CAP covers tuition and fees only, not books or living expenses. Members must be in good standing. Contact the SC National Guard Education Office at (803) 299-2734 or the SC Commission on Higher Education to apply.
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In-State Tuition for Veterans, Service Members, and Dependents
Veterans eligible for VA education benefits, active duty service members, and their dependents are entitled to in-state tuition at South Carolina public colleges regardless of how long they’ve lived in the state. Nonresident service members stationed in SC on orders pay in-state rates automatically. Veterans who enroll within three years of leaving active duty also qualify for resident tuition rates.
Military Credit Transfer
South Carolina public institutions use American Council on Education (ACE) recommendations to award academic credit for military training and experience. The SC Military Credit Mobility Task Force actively works to ensure military training counts toward degree requirements — not just electives — reducing the time and cost to complete a degree.
Employment Preferences
South Carolina provides veterans preference in state government hiring. Beyond general preference, the state operates several dedicated programs:
- SC Works Centers: All SC Works locations provide priority service to veterans, including job search support, resume development, skills assessments, and training referrals
- Operation Palmetto Employment: A statewide initiative of the SC National Guard, SC Department of Employment and Workforce, and private business partners focused on connecting veterans and military family members with civilian careers
- Family Member Employment Assistance Program (FMEAP): Career tools and services tailored to military spouses managing frequent relocations
State employees called to active duty may continue contributing to the South Carolina Retirement System during their service. Members can also purchase up to six years of state retirement service credit for military time — a benefit that can meaningfully increase a pension payout at retirement.
State Veterans Nursing Homes
South Carolina operates six state veterans nursing homes — one of the larger networks in the Southeast:
- E. Roy Stone Veterans Pavilion — Columbia
- Richard M. Campbell Veterans Nursing Home — Anderson; (864) 261-6734
- Veterans’ Victory House — Walterboro; (843) 538-3000
- Veteran Village — Florence; (833) 444-1776
- Palmetto Patriots Home — Gaffney; (864) 649-2000
- Sumter Veterans Home — Sumter
Eligibility requirements:
- Honorably discharged from the U.S. Armed Forces
- South Carolina resident for at least one year prior to application
- Medical need for skilled nursing care
Some facilities also offer memory care for veterans with dementia or Alzheimer’s. Costs are shared between the resident and the VA for eligible veterans. Contact each facility directly or reach the SCDVA at scdva.sc.gov for application packets and current wait times.
Vehicle and License Benefits
- Two-vehicle property tax exemption: Totally and permanently disabled veterans are exempt from property taxes on up to two private passenger vehicles bearing the disabled veteran plate or covered by a certificate of disability on file with the DMV
- Free municipal parking: Vehicles with a South Carolina “V” tag (disabled veteran), Purple Heart, or Medal of Honor license plate are exempt from parking meter fees
- Veteran designation on driver’s license/ID: Any honorably discharged veteran can add a Veteran designation for a small administrative fee — useful for verifying veteran status for discounts and other benefits
- Specialty license plates: SC issues plates for disabled veterans, Purple Heart recipients, Medal of Honor recipients, and various branch and unit categories
State Veterans Cemetery
The M.J. “Dolly” Cooper Veterans Cemetery in Anderson is open to honorably discharged veterans who were SC residents at the time of death, at the time of entry into service, or who lived in South Carolina for five or more years. There is no charge for the veteran’s burial. A modest fee applies for a spouse. Some dependent children may also be eligible. The cemetery provides a burial plot, opening and closing, headstone or marker, and liner at no cost to the veteran’s family.
Surviving Spouse Benefits
South Carolina extends many benefits to unremarried surviving spouses:
- Property tax exemption: Transfers fully to the unremarried surviving spouse and can follow them to a new home
- Vehicle exemption: Continues on one vehicle for the surviving spouse
- SBP payments: Fully exempt from South Carolina income tax
- Free tuition: Unremarried surviving spouses of veterans killed in action or who died from service-connected causes may qualify for the same free tuition program available to children
- State retirement continuity: Surviving spouses of state employees killed in service maintain benefit continuity
Major Military Installations
South Carolina’s military infrastructure creates a broad base of federal VA resources and economic presence across the state:
- Fort Jackson (Columbia) — The Army’s largest initial entry training installation; processes the majority of all Army basic training recruits
- Shaw Air Force Base (Sumter) — Home of the 20th Fighter Wing and Air Forces Central Command
- MCAS Beaufort — Trains F/A-18 pilots; home to Marine aviation squadrons
- Marine Corps Recruit Depot Parris Island — Trains all enlisted Marines from east of the Mississippi
- Joint Base Charleston — Combined Air Force and Navy installation; strategic airlift and submarine support
VA healthcare is available through the Ralph H. Johnson VA Medical Center in Charleston, with community-based outpatient clinics in Columbia, Florence, Myrtle Beach, Greenville, and additional locations statewide.
How to Access SC Veteran Benefits
The South Carolina Department of Veterans’ Affairs (SCDVA) maintains County Veterans’ Affairs Offices throughout the state. Trained staff help veterans and their families navigate federal and state programs at no charge.
Key contacts:
- SCDVA — state benefits portal and county office locator; education benefits: (803) 647-2434
- SC Department of Revenue — Veteran Property Tax Exemptions
- SC Commission on Higher Education — Military & Veterans
- SC Works — employment services with veteran priority
Compare SC benefits with neighboring states: North Carolina, Georgia, Tennessee — or browse the full Veteran Benefits by State directory.
Frequently Asked Questions
Yes, completely. Since the 2022 tax year, all military retirement pay is fully exempt from South Carolina income tax — no age threshold, no income cap, no earned income requirement. SBP payments are also exempt.
Veterans who are permanently and totally disabled due to a service-connected disability receive a complete property tax exemption on their primary residence (plus up to 5 acres) and on up to two vehicles. Veterans who were overpaying property taxes can apply retroactively for up to two prior tax years.
Possibly. Children age 26 or under of wartime veterans who were killed in action, died from service-connected causes, are permanently and totally disabled, were POW/MIA, or are Medal of Honor or Purple Heart recipients may attend any SC state-supported college tuition-free. Both veteran and child must meet residency requirements. Apply through SCDVA at (803) 647-2434.
Six — in Columbia, Anderson, Walterboro, Florence, Gaffney, and Sumter. All provide skilled nursing care for eligible honorably discharged veterans who are SC residents with a medical need for care.
The CAP provides tuition and fee assistance to active drilling SC National Guard members — up to $12,000/year for Army Guard (with a $25,000 lifetime cap), and up to $11,000/year for Air Guard members in two-year programs. Contact the SC National Guard Education Office at (803) 299-2734.