Gov. Henry McMaster announces proposal to eliminate state income tax for uniformed retirees
S..C. Gov. Henry McMaster Friday announced a proposal, included in the 2018-19 Executive Budget, that permanently and fully exempts military veterans and retired first responders, including state and federal law enforcement, firefighters, and peace officers, from paying state taxes on retirement income.
“This income tax exemption on retirement pay will reaffirm the unwavering commitment of South Carolinians to these people who have chosen to serve,” McMaster said.
The proposal, in its first year of implementation, would result in an over $22 million tax cut for the men and women who put their lives on the line in the name of service to South Carolina and to the country.
Scored by the South Carolina Revenue and Fiscal Affairs Office (RFA), the proposed exemption for South Carolina’s 37,863 military veterans is an augmentation of Act 272 of 2016 and will result in average yearly savings of $524 for military retirees under the age of 65 and $210 for those 65 and older. In total, the exemption for military veterans will result in a tax cut of over $14 million in FY 2018-19.
The governor’s exemption for South Carolina’s 20,370 law enforcement officers, firefighters, and peace officers was similarly score by the RFA and is expected to result in an $8.5 million yearly tax cut – an average of $713 yearly savings for a retiree under the age of 65 and $102 for those 65 and older.
“I want to thank the governor for this great initiative, along with all of our inter-agency partners here,” said Maj. Gen. Robert Livingston, Jr., Adjutant General of South Carolina.