South Carolina Veteran Financial Benefits
Military Retirement Pay Tax Exemption
South Carolina fully exempts military retired pay from state income tax. While the Thrift Savings Plan (TSP) does not withhold state or local taxes, distributions are reported annually on IRS Form 1099-R and remain subject to state taxation. Early withdrawals may also be subject to additional tax penalties.
Taxation of Military Pay
Active-duty military pay received by South Carolina residents is subject to state income tax.
Military Disability Retirement Pay Exemption
Disability retirement pay resulting from service-related injuries or illness is not included in taxable income. Examples of exempt payments include:
- VA disability compensation and pension payments to Veterans or their families
- Housing grants for wheelchair-accessible homes
- Vehicle grants for Veterans who lost sight or use of limbs
- Benefits provided under dependent-care assistance programs
VA Dependency and Indemnity Compensation (DIC)
DIC payments to eligible surviving spouses or dependents of Service members who died in the line of duty, or Veterans whose death resulted from a service-connected condition, are fully exempt from South Carolina state income tax.
Military Survivor Benefit Plans (SBP, RCSBP, RSFPP)
Annuities received through SBP, RCSBP, or RSFPP are exempt from state income taxes for surviving spouses.
Property Tax Exemptions
South Carolina offers generous property tax exemptions for certain Veterans and surviving spouses:
- Disabled Veterans (100% permanent and total VA rating):
- Exemption on a home and up to five acres of land (owner-occupied and titled solely or jointly with a spouse).
- Exemption on up to two private passenger vehicles. One vehicle exemption transfers to an un-remarried surviving spouse who maintains ownership.
- Former POWs and Medal of Honor Recipients:
- Exemption on a home and up to one acre of land.
- Exemption on two private passenger vehicles. For Purple Heart recipients, one vehicle exemption passes to an un-remarried surviving spouse; for Medal of Honor recipients, both vehicle exemptions transfer.
Reserve Component Training Pay Exemptions
Certain types of training pay for National Guard and U.S. Armed Forces Reserve members are exempt from state taxes:
- All inactive duty pay for weekend drills and training
- 15 days of annual training pay
- 14 days of inactive duty annual training pay plus up to two days of travel time (must be reflected on orders)
- Up to 39 days for full-time Active Guard/Reserves (15 days annual training + 24 weekend drill days)
Military Spouse Residency Relief Act
Nonresident military spouses who share the same state of legal residence as their Service member spouse (stationed in South Carolina under military orders) are exempt from South Carolina income taxes on wages earned in the state. They remain responsible for filing in their home state.
Combat Zone Tax Exemption and Filing Extension
Combat and hazardous duty pay is not taxed by South Carolina. In addition, Service members serving in designated combat zones have an automatic 180-day extension after leaving the zone to file and pay state taxes.
Sales Tax Rates
- Statewide rate: 6.0%
- Counties may levy an additional up to 1.0%
- Current combined average sales tax: 7.43%
Recreation
South Carolina Outdoor Recreation Benefits for Veterans and Service Members
Reduced-Fee State Park Passes
The South Carolina All Park Passport is available at half price ($49.50) for:
- Senior citizens (65 and older)
- Residents who are legally blind
- Residents with a 100% VA disability rating
- Active members of the South Carolina National Guard
The All Park Passport provides unlimited entry to all South Carolina state parks for everyone in the pass holder’s vehicle. It is valid for one year from purchase and transferable between vehicles.
Additional Benefits of the All Park Passport:
- Free admission to historic home tours at Redcliffe, Rose Hill, and Hampton Plantations (up to 4 guests per visit)
- Free admission to the Hunting Island State Park lighthouse (up to 4 guests per visit)
- Free admission to Atalaya Castle at Huntington Beach State Park (up to 4 guests per visit)
Where to Buy: Passes can be purchased at any South Carolina state park, at the State Park Service central office in Columbia, the State House Gift Shop, or by calling 803-734-0156. Applicants must provide proof of eligibility.
Note: The passport holder must be present in the vehicle at the time of entry, and ID may be requested.
Free Hunting and Fishing Licenses for Disabled Veterans
The South Carolina Department of Natural Resources (SCDNR) offers free Disability Combination and Disability Fishing Licenses to resident disabled Veterans. Licenses are valid for three years.
- Disability Combination License Includes:
- Freshwater & saltwater fishing
- Freshwater set hook
- State hunting
- Big game hunting
- Wildlife Management Area Permit
- Migratory Waterfowl Permit
- Disability Fishing License Includes:
- Freshwater fishing
- Saltwater fishing
Eligibility: Must be a resident Veteran with a VA disability rating that qualifies for compensation. Applications require:
- A valid South Carolina driver’s license or ID card
- VA disability certification letter dated within the last 12 months
Resident Hunting & Fishing Privileges for Nonresident Service Members and Families
Nonresident Service members and their dependents who:
- Are stationed in South Carolina for 30+ days, or
- Reside in South Carolina
…are eligible to purchase hunting and fishing licenses at resident rates with a valid military ID.
License Exemptions for Resident Active-Duty Service Members on Leave
South Carolina residents on active duty, stationed outside the state, and home on leave may hunt and fish without purchasing licenses.
However, Service members must still obtain necessary permits and tags for:
- Big game
- Migratory birds & waterfowl
- Hunting on Wildlife Management Area lands
- Antlerless deer & turkey hunts
- Nongame fish devices and shrimp overbait
They must carry both their military ID and a Leave and Earnings Statement (LES) showing South Carolina as their home of record.
Education Programs
Free Tuition for Certain Veterans’ Children
South Carolina provides a tuition waiver for the children of qualifying wartime Veterans who attend state-supported colleges, universities, or post-secondary technical schools.
Eligibility Requirements for the Veteran Parent:
- Served during a wartime period
- Received an “other than dishonorable” discharge
- South Carolina residency requirement met through one of the following:
- Resident at entry into service, during service, and currently a resident, OR
- Resident for at least one year before death (if deceased)
Additional Qualifying Conditions (one or more must apply):
- Killed in action
- Died during service or from a service-connected disability/disease
- Prisoner of war (POW) or Missing in action (MIA)
- Medal of Honor recipient
- Purple Heart recipient
- Permanent and total VA disability rating
Children must be 26 years old or younger to qualify.
In-State Tuition Benefits
- Veterans, active duty, Reserve, and National Guard Service members, as well as their dependents, are entitled to in-state tuition rates, regardless of residency length in South Carolina.
- Dependents of Service members on active duty outside South Carolina may also receive in-state tuition if they are using transferred VA education benefits. (Once benefits are exhausted, students must establish residency to continue in-state rates.)
Residency for Nonresident Service Members & Families
Nonresident Service members stationed in South Carolina, along with their dependents, qualify for in-state tuition and fees without needing to establish permanent residency.
Educational Support for Military Children (MIC3 Compact)
South Carolina participates in the Interstate Compact on Educational Opportunity for Military Children (MIC3), which helps reduce educational barriers caused by frequent relocations and deployments.
Key provisions include:
- Smooth school transfers with prompt record sharing and flexible enrollment requirements
- Fair student placement without disadvantage from differing academic schedules, grading systems, or course content
- On-time graduation support
- Access to extracurriculars (academic, athletic, social)
- Coordinated information sharing among states, schools, and military families
South Carolina Purple Star Schools
The Purple Star School Designation honors schools that go above and beyond to support military-connected students and families.
To qualify, schools must:
- Appoint a military family liaison trained to address unique challenges faced by military children
- Ensure staff awareness and training to better serve students from military households
Housing: Below are the available Veterans Home locations.
South Carolina State Veterans Nursing Homes: The state of South Carolina operates five Veterans nursing homes that provide skilled and intermediate nursing care for eligible Veterans.
South Carolina State Veterans Home at Daytona Beach
South Carolina State Veterans Home at Land O’ Lakes
South Carolina State Veterans Home at Pembroke Pines
South Carolina State Veterans Home at Panama City
South Carolina State Veterans Home at Port Charlotte
South Carolina State Veterans Home at St. Augustine
Services offered at South Carolina State Veterans Nursing Homes include:
- Comprehensive medical care
- Skilled nursing services
- Rehabilitation therapies
- On-site pharmacy support
- Recreational and therapeutic programs
- Social work services
- Barber and beauty services
- Transportation assistance
- Laundry services
Eligibility for Admission
To qualify for care at a South Carolina State Veterans Nursing Home, applicants must:
- Be a Veteran who served on active duty in the U.S. Armed Forces with an honorable discharge
- Have been a resident of South Carolina for at least one year
- Be determined by the VA to need skilled or intermediate nursing home care
Employment and Job Training Benefits for South Carolina Veterans
Military Leave for State Employees
South Carolina state employees who serve in the military receive 15 days of paid military leave each year for training.
- Employees called to active duty in a combat zone who have exhausted their leave are granted an additional 30 days of paid military leave per year.
- State employees may also use up to 45 days of annual leave and 90 days of sick leave in a calendar year when serving on active duty during an emergency or conflict declared by the President.
Eligibility: Available to South Carolina National Guard and U.S. Armed Forces Reserve Service members employed by the state.
Veterans Hiring Preference for State Jobs
South Carolina requires that at least one qualified Veteran be interviewed for every full-time equivalent state position.
Eligibility: Veterans must have served on active duty (not for training), been discharged under honorable conditions, and meet the minimum job requirements.
Retirement Credit for Military Service
Members of the South Carolina Retirement System (SCRS) may purchase up to six years of service credit for time served in the U.S. Armed Forces.
- Cost is based on the employee’s age, years of service, and highest career pay, and will not be less than 16% of the highest annual pay per year purchased.
- Service must have ended under conditions other than dishonorable.
- Contributions may be continued while on leave or made after returning to state employment.
Operation Palmetto Employment
This statewide initiative—supported by the South Carolina National Guard, Department of Employment and Workforce, and business partners—helps Service members, Veterans, and their Families transition into meaningful civilian careers by:
- Identifying the military community in South Carolina
- Streamlining the employment process
- Leveraging military experience and skills
- Building partnerships between employers and workforce providers
Eligibility: Unemployed Service members, Veterans, and their Family members.
SC WORKS Veteran Services
SC WORKS Centers provide dedicated Veteran employment support through:
- Disabled Veterans Outreach Program (DVOP): Intensive case management for Veterans facing economic or educational challenges
- Local Veterans’ Employment Representatives (LVER): Employer outreach to create job opportunities and promote Veterans in the workforce
Priority Services for Veterans:
- Career coaching (individual and group)
- Resume assistance
- Job referrals and training programs
- Exclusive 24-hour priority access to new job postings on the SC WORKS Online Services website
Burials and Memorials
It’s important to record your wishes regarding burial in a national cemetery and the use of a VA-provided headstone, ensuring this information is included with your personal and medical records.
The National Cemetery Administration (NCA) honors eligible Veterans and their families by offering a dignified final resting place and a lasting memorial to recognize their service to the nation.
Available burial benefits include a gravesite in any national cemetery with space, opening and closing of the grave, perpetual upkeep, a government-issued headstone or marker, a burial flag, and a Presidential Memorial Certificate—all provided at no cost to the family. In certain cases, Veterans may also qualify for a burial allowance. Cremated remains are placed or inurned in national cemeteries with the same respect and tribute given to casketed remains.
These benefits also extend to spouses and dependents, who may be laid to rest with the Veteran, with their names and dates inscribed on the headstone free of charge. Burial rights for spouses and dependents remain valid even if they pass away before the Veteran, and they are not required to be interred in the same cemetery as the Veteran.
National Cemeteries include:
Beaufort: Beaufort National Cemetery
Columbia: Fort Jackson National Cemetery
Florence: Florence National Cemetery
South Carolina VA Benefit Resources
South Carolina provides Veterans with a Regional Benefits Office and a VA Medical Center.
South Carolina VA Regional Benefits Office
- Columbia: Columbia Regional Office
South Carolina VA Medical Centers
- Charleston: Ralph H. Johnson VA Medical Center
Key Details on South Carolina Veteran Benefits:
If you’re a Veteran applying for VA benefits for the first time, you’ll need to provide a copy of your DD Form 214 (discharge papers). This document verifies your discharge status, full name, Social Security number, branch of service, and dates of service. Generally, Veterans with honorable or general discharges are eligible for most VA benefits.
It’s important to store your military paperwork and medical records securely in a place where you and your family can easily access them. Ideally, keep them in a fireproof safe or another protected location to ensure they aren’t lost, damaged, or altered.
Eligibility for the majority of VA benefits depends on being discharged from active duty under conditions other than dishonorable. Active duty refers to full-time service in the Army, Navy, Air Force, Marine Corps, or Coast Guard, as well as commissioned officer service in the Public Health Service, Environmental Services Administration, or the National Oceanic and Atmospheric Administration.
Veterans discharged under “Dishonorable” conditions, typically resulting from bad conduct convictions by a general court-martial, may be ineligible for VA benefits. However, some incarcerated Veterans and parolees may still qualify for certain benefits. VA regional offices can provide guidance regarding eligibility for individuals with multiple discharges under different circumstances or those currently serving prison terms or on parole.
Information current as of November 2023
South Carolina Veteran Benefits
Disabled Veterans in South Carolina with a VA disability rating of 90% or lower may be entitled to extra benefits. Veterans Guardian offers a free, no-obligation consultation to review your claim and help determine if you are eligible for additional support.
