The Short Answer
Active-duty pay is taxed as South Carolina income (top rate around 6.2% for 2025), though combat-zone pay excluded federally is also excluded by SC. Your base pay is set by the federal pay table — identical to every other state for your rank and years of service. What actually changes in South Carolina is your BAH (averaging $1,300/mo without dependents and $1,600/mo with dependents) and how South Carolina treats the taxable portion of your pay.
State tax status: ~ PARTIAL EXEMPT
2026 Worked Example — E-5, 6 Years, With Dependents in South Carolina
Here is how the math actually lands for a mid-career enlisted member stationed in South Carolina, built the way I read my own LES. Base pay and BAS are federal; the South Carolina BAH figure is the state average.
| Monthly line item | Amount | Taxable? |
|---|---|---|
| Base pay (E-5, over 6 yrs) | $3,874 | Yes (federal + state) |
| BAH with dependents (South Carolina avg) | $1,600 | No — tax-free |
| BAS (enlisted) | $476.95 | No — tax-free |
| Gross monthly entitlements | $5,950.95 | — |
| Taxable income (base pay only) | $3,874 | — |
| Est. South Carolina state income tax | varies — see notes | — |
Only the $3,874 of base pay is taxable — the $2,076.95 of BAH + BAS is completely tax-free. Run your exact rank, ZIP, and dependency status in the Military Pay Calculator for a precise estimate.
How South Carolina Taxes Each Type of Military Pay
Active-Duty Base Pay
Active-duty pay is taxed as South Carolina income (top rate around 6.2% for 2025), though combat-zone pay excluded federally is also excluded by SC.
Guard & Reserve Drill Pay
South Carolina Guard and Reserve drill pay is generally taxable as ordinary income.
Military Retirement Pay
Military retirement pay is fully exempt from South Carolina income tax.
VA Disability Compensation
VA disability compensation is exempt federally and is not taxed by South Carolina.
SCRA & Residency in South Carolina
A nonresident soldier at Fort Jackson who keeps another state's legal residence owes no South Carolina tax on military pay under SCRA.
This is the single most misunderstood rule in military pay. Your home of record / state of legal residence — not your duty station — generally determines who can tax your military pay. Changing it is a deliberate act, not something that happens automatically when you PCS.
Major Military Installations in South Carolina
- Joint Base Charleston
- Fort Jackson
- Marine Corps Recruit Depot Parris Island
- Shaw Air Force Base
BAH is set by the Military Housing Area covering your duty ZIP. Verify your exact rate at the official DoD BAH lookup.
Official Sources
FAQ — Military Pay in South Carolina
Does South Carolina tax my military base pay?
Active-duty pay is taxed as South Carolina income (top rate around 6.2% for 2025), though combat-zone pay excluded federally is also excluded by SC.
Is my BAH taxed in South Carolina?
No. BAH is federally tax-free and is never counted as income for South Carolina state income tax, regardless of how South Carolina treats base pay.
Does South Carolina tax military retirement pay?
Military retirement pay is fully exempt from South Carolina income tax.
I'm stationed in South Carolina but my home of record is elsewhere — who taxes me?
A nonresident soldier at Fort Jackson who keeps another state's legal residence owes no South Carolina tax on military pay under SCRA.