Gov. Henry McMaster announces eliminating state income taxes for retirees who served in uniform
January 5, 2018
$22 Million Annual Exemption For Veterans, Police Officers, Firefighters, and Peace Officers
Governor Henry McMaster today announced a bold tax reform 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.
“There’s no way we will ever be able to repay these men and women in uniform for the true value they add to our state and our community, but this is one example of how we can show our gratitude and appreciation for their service,” said Gov. Henry McMaster. “This income tax exemption on retirement pay will reaffirm the unwavering commitment of South Carolinians to these people who have chosen to serve.”
The governor’s 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 governor’s 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.
“As we gather as leaders across this state and across the country in law enforcement, one of our concerns is recruitment and retention – this initiative is going to put a great tool in our tool box to be able to recruit good people and keep them in our profession,” said Lexington County Sheriff Jay Koon.
