Retiring to Charleston SC: Taxes, Health Care and Housing (2026)

State income tax on retirement income

South Carolina doesn't tax Social Security benefits. For other retirement income, such as pensions and IRA or 401(k) withdrawals, the state allows a retirement income deduction of up to $3,000 a year before 65 and up to $10,000 a year from 65, per person. From 65 there's also a $15,000 deduction against any income, reduced by the retirement deduction you take. Military retirement has its own, larger deduction.

Above those deductions, 2026 brought new rates under H.4216: 1.99% on taxable income under $30,000 and 5.21% (minus $966) above it, and the state now uses its own deduction in place of the federal standard deduction. SCDOR is still publishing guidance on how the new law fits with the retirement deductions, so have a tax professional run your actual return.

Coming from a state that doesn't tax retirement income at all, such as Pennsylvania or Florida, you may pay more income tax here, not less. My Pennsylvania and Florida pages compare it.

Property tax at 65

Every homeowner who lives in the home can apply for the 4% legal residence rate, which also skips school operating millage. Once you've been a South Carolina resident for a full calendar year and are 65 or older, the homestead exemption takes the first $50,000 of the home's value off the tax bill too. My 4% vs 6% guide shows real numbers.

South Carolina has no state estate tax, but talk with an estate attorney about how you'll title the home, since that can affect the 4% rate and the homestead exemption.

Hospitals and health care

The area's two big systems are MUSC Health, which includes the academic medical center downtown, and Roper St. Francis Healthcare. Both are growing toward where people are moving. MUSC broke ground on a Nexton medical campus in September 2025. Roper St. Francis is building a $1.2 billion hospital campus in North Charleston, near I-26 and I-526, to replace its downtown Roper Hospital, with opening planned for mid-2029, and it finished a major expansion of its Berkeley Hospital in 2026.

If you'll see specialists often, check drive times to them before you choose an area. My commute calculator includes MUSC.

Where the 55+ communities are

Most of the age-restricted communities are in the Summerville area, inside master plans like Summers Corner, Nexton, Cane Bay, Carnes Crossroads and The Ponds, with a few closer in at Point Hope, Carolina Park and North Charleston. In the 12 months to Oct. 28, 2026, medians ran from under $300,000 for villas to about $857,000 at Del Webb Point Hope.

Plenty of people retire into regular neighborhoods too. The which-area quiz sorts the whole region by budget, commute, beach access and flood risk.

Insurance and hurricanes

Homeowners insurance is the cost people from inland states underestimate most. A July 2026 Insurify report put Charleston County's average annual homeowners premium at about $5,491. Flood insurance is a separate policy, and many policies carry a hurricane or named-storm deductible set as a percentage of coverage. Hurricane season runs June 1 to November 30. My insurance guide explains how to price it before you buy.

Common questions

Does South Carolina tax Social Security?

No. Social Security benefits aren't taxed by South Carolina. Other retirement income gets a deduction of up to $3,000 a year before 65 and up to $10,000 from 65, per person.

Is there a property tax break for seniors in South Carolina?

Yes. After a full calendar year as a South Carolina resident, homeowners 65 or older can apply for the homestead exemption, which exempts the first $50,000 of the home's fair market value. It's in addition to the 4% legal residence rate.

Where are the 55+ communities near Charleston?

Mostly in the Summerville area: Summers Corner, Nexton, Cane Bay, Carnes Crossroads and The Ponds. Closer in, there are 55+ sections at Point Hope, Carolina Park and The Elms of Charleston in North Charleston. My 55+ guide compares them.

Is a new hospital being built near Charleston?

Yes. Roper St. Francis is building a new Roper Hospital campus in North Charleston, planned to open in mid-2029, and MUSC is building a medical campus at Nexton.

Keep reading

Sources

Published November 8, 2026, last checked November 8, 2026. Fees, prices and road projects change, so confirm the current numbers for any specific home before you buy. More answers

Retiring to Charleston, SC: what do taxes, health care and housing look like?