South Carolina vs Florida Taxes
Compare the total tax burden between South Carolina (0% – 6.4%) and Florida (no income tax). Enter your income to see which state saves you more.
Florida vs South Carolina: Where the Southeast's retirees actually end up—and why
Florida and South Carolina are the two most popular retirement destinations in the Southeast, and they compete directly for the same demographic: affluent 55+ households from the Northeast and Midwest looking for warm weather, golf courses, and lower taxes. Florida's zero income tax is its headline advantage, but South Carolina's combination of low property taxes, lower insurance costs, and a more moderate climate has quietly made it the preferred choice for a growing number of retirees.
Florida's lack of income tax is unbeatable on paper, but the state's other costs have risen sharply. Homeowners insurance in Florida averages over $4,000/year—roughly triple the national average—and flood insurance adds another $700-$1,500 in coastal areas. South Carolina's homeowners insurance averages about $1,800/year. Property taxes in SC are also lower: approximately 0.53% effective rate versus Florida's 0.80%, and SC's 4% assessment ratio for owner-occupied homes creates an even larger gap in practice.
South Carolina does impose a top income tax rate of 6.4%, which is significant. But SC exempts Social Security entirely and offers a $10,000 deduction on other retirement income for those under 65 (unlimited exemption for those 65+). For many retirees whose income is primarily Social Security plus modest pension or IRA withdrawals, the effective South Carolina tax rate is very low—sometimes approaching zero. Hilton Head, Charleston, and Myrtle Beach have all seen substantial retiree in-migration, competing directly with Naples, Sarasota, and Jacksonville.
Key Differences Beyond Income Tax
| Category | South Carolina | Florida |
|---|---|---|
| Property Tax | Effective rate ~0.80%; $50,000 homestead exemption; Save Our Homes caps annual increases at 3% | Effective rate ~0.53%; owner-occupied homes assessed at just 4% of fair market value; very favorable for homeowners |
| Sales Tax | Base rate 6%, combined up to 7.5%; no state tax on groceries or clothing | Base rate 6%, combined up to 9%; groceries taxed at capped rate; clothing fully taxed |
| Homeowners Insurance | Average $4,000+/year; hurricane risk drives some of the highest rates in the nation; Citizens Insurance as insurer of last resort | Average ~$1,800/year; coastal areas higher but still well below Florida equivalents |
| Retirement Income | No state income tax on any income—simplest possible treatment | Social Security exempt; 65+ get unlimited retirement income deduction; under 65 get $10,000 deduction |
| Estate Tax | No state estate tax; strong asset protection laws including unlimited homestead exemption | No state estate tax; homestead protection more limited than Florida's |
Who Benefits from Moving?
Retirees 65+ with Social Security and moderate retirement income
A 65+ retiree with $30,000 in Social Security and $40,000 in pension income pays $0 in Florida and effectively $0 in South Carolina (Social Security exempt plus unlimited 65+ retirement deduction). With SC's lower property taxes and insurance, a $350,000 home costs about $3,000-$4,000 less per year in SC than FL when you factor in insurance and property tax differences.
High-income retirees with $200K+ in investment income
A retiree with $200,000 in investment and retirement income pays $0 in Florida versus potentially $10,000+ in South Carolina. At this income level, Florida's zero tax clearly wins, even after accounting for higher insurance and property tax costs.
Pre-retirees (55-64) still earning employment income
A 60-year-old still working and earning $120,000 pays $0 in Florida versus roughly $7,100 in South Carolina. The income tax hit is substantial before age 65 when SC's generous retirement deductions haven't kicked in. Florida is clearly better during earning years.
Bottom line: For retirees 65+ with income under $100,000, South Carolina can actually be cheaper than Florida overall—saving $3,000-$4,000 on insurance and property taxes while paying little to no state income tax—but high-income earners and pre-retirees save more in Florida.
Tax at Different Income Levels
| Income | South Carolina Total Tax | Florida Total Tax | Annual Savings |
|---|---|---|---|
| $75,000 | $16,785 | $13,687 | Save $3,099 |
| $100,000 | $25,798 | $21,099 | Save $4,699 |
| $150,000 | $44,441 | $36,542 | Save $7,899 |
| $200,000 | $61,984 | $50,885 | Save $11,099 |
Based on single filer, standard deduction, 2025 tax year. Includes federal income tax, state income tax, and FICA.
Why the difference
You'd save $4,699/year ($392/month) in Florida vs South Carolina.
Tax structure
South Carolina uses progressive brackets up to 6.4%, while Florida has no state income tax.
Effective rate at your income
At $100,000, Florida's effective state rate is 0.0% vs 4.7% in South Carolina — a 4.7 percentage point gap.
Tip: In a progressive-bracket state, pre-tax 401(k) and HSA contributions reduce your state tax bill along with federal tax. If you are near a bracket boundary, an additional contribution can drop you into a lower state bracket.
Tip: No state income tax means your take-home pay is among the highest nationally. Florida does not tax retirement income, Social Security, or investment income at the state level, making it one of the most tax-efficient states for retirees and investors.
Understanding Each State
South Carolina
This state uses a progressive income tax system with multiple brackets, similar to the federal system. Only the income within each bracket is taxed at that rate, so your effective state rate is lower than the top bracket. Tax planning strategies include maximizing pre-tax retirement contributions to reduce state-taxable income.
Tip: In a progressive-bracket state, pre-tax 401(k) and HSA contributions reduce your state tax bill along with federal tax. If you are near a bracket boundary, an additional contribution can drop you into a lower state bracket.
Florida
Florida has no state income tax, funded instead by a 6% state sales tax (plus local additions up to 2%) and property taxes. This makes Florida especially attractive for high earners and retirees. Florida's population has grown rapidly, partly driven by tax migration from high-tax states like New York and California.
Tip: No state income tax means your take-home pay is among the highest nationally. Florida does not tax retirement income, Social Security, or investment income at the state level, making it one of the most tax-efficient states for retirees and investors.
Key Comparison Points
Income tax structure: South Carolina has a progressive income tax (0% – 6.4%), while Florida has no state income tax.
Beyond income tax: State tax comparisons should also consider property tax rates, sales tax, and cost of living. A state with no income tax may have higher property or sales taxes that offset the savings.
SALT deduction cap: Under OBBBA (2025+), the federal SALT cap is $40,000, phasing out above $500,000 MAGI toward a $10,000 floor. This limits the federal tax benefit of living in a high-tax state, so the gross state tax difference remains close to the net difference for most earners — especially high earners inside the phaseout.
Frequently asked questions
Is it cheaper to live in South Carolina or Florida?
Based on income tax alone, Florida has a lower tax burden. At $100K income, you'd save $4,699 annually in Florida compared to South Carolina. However, total cost of living also depends on property taxes, sales taxes, and housing costs.
How much would I save moving from South Carolina to Florida?
A single filer earning $100,000 would save approximately $4,699 per year in total taxes by living in Florida instead of South Carolina. At $150,000 income, the savings change to $7,899 per year.
What is the income tax rate in South Carolina?
South Carolina has a progressive income tax with rates of 0% – 6.4%.
What is the income tax rate in Florida?
Florida has no state income tax.
Does Florida have income tax?
No, Florida does not levy a state income tax. Residents pay only federal income tax and FICA. However, Florida may have higher property taxes or sales taxes to compensate.