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| Income Tax: |
| Exemptions, adjustments and deductions allowed on a federal income tax return are allowed on a state return. A person's federal taxable income is the starting point to determine income tax liability. |
| Deductions: |
| In the first year retirement income is received, taxpayers may claim an income tax deduction of up to $3,000 of retirement income. When taxpayers turn 65, they may take a $10,000 deduction from retirement income. |
| Social Security: |
| Social Security benefits are exempt from income tax in South Carolina. If benefits were taxed at the federal level, that portion may be deducted from the South Carolina taxable income. |
| Property Tax: |
South Carolina has a personal property tax on automobiles, recreational vehicles, airplanes and boats based on an assessed value of 10.5 percent of total purchase price. The assessed value is then multiplied by the appropriate millage rate of the district in which the taxpayer resides. Hilton Head Island is divided into six districts with varying millage rates.
Real estate taxes are based on an appraised value of property by the county tax assessor. The appraised value is computed on comparable sales, condition of property, etc. The appraised value is then multiplied by 4 percent for residents and 6 percent for non-resident property owners and corporations to obtain what is known as the assessed value. The assessed value is multiplied times the millage rate for the appropriate district. The first $20,000 of the fair market value of a home is exempt from property taxes for citizens who are 65 or older; citizens who are totally and permanently disabled; and citizens who are legally blind, if they have been a South Carolina resident for at least one year. |
| Sales Tax: |
| South Carolina has a five percent sales tax. Persons 85 years or older pay only 4 percent sales tax. There is a state-wide accommodations tax of 2 percent. A maximum of $300 is imposed on purchases of motor vehicles, boats and leased vehicles. Hilton Head Island imposes a 3 percent tax. |
| Estate Tax: |
| As of 1998, estates worth $675,000 or less will be exempt from estate tax in South Carolina. The exemption will increase annually until it reaches $1 million in 2006. |
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