South Carolina S 207: Retirement Income Tax Deduction

Bill Text

2025-2026 Bill 207 Text of Previous Version (Jan. 15, 2025) - South Carolina Legislature Online 

South Carolina General Assembly
126th Session, 2025-2026

Bill 207

Indicates Matter Stricken
Indicates New Matter

(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

A bill

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY AMENDING 
SECTION 12-6-1170, RELATING TO THE RETIREMENT INCOME DEDUCTION FROM TAXABLE 
INCOME, SO AS TO INCREASE THE INDIVIDUAL DEDUCTION FROM FIFTEEN THOUSAND 
DOLLARS TO TWENTY THOUSAND DOLLARS, TO INCREASE THE DEDUCTION FOR MARRIED 
TAXPAYERS WHO FILE A JOINT FEDERAL INCOME TAX RETURN FROM THIRTY THOUSAND 
DOLLARS TO FORTY THOUSAND DOLLARS, AND TO PROVIDE FOR AN ANNUAL INFLATION 
ADJUSTMENT.

Be it enacted by the General 
Assembly of the State of South Carolina:

SECTION 1. Section 12-6-1170(B) of the S.C. Code is amended to 
read:

 (B) Beginning for the taxable year 
during which a resident individual taxpayer attains the age of sixty-five 
years, the resident individual taxpayer is allowed a deduction from South 
Carolina taxable income received in an amount not to exceed fifteen twenty thousand 
dollars reduced by any amount the taxpayer deducts pursuant to subsection (A) 
not including amounts deducted as a surviving spouse. If married taxpayers 
eligible for this deduction file a joint federal income tax return, then the 
maximum deduction allowed is fifteen twenty thousand dollars in the case when only one spouse 
has attained the age of sixty-five years and thirty forty thousand dollars when both spouses have attained 
such age. The amount of the tax deduction allowed pursuant 
to this section shall be annually adjusted. The annual inflation adjustment may 
not exceed four percent.

SECTION 2. This act takes effect upon approval 
by the Governor.

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