KLS Keeping Law Simple Legislation in plain English

Straight-ahead summaries built from the official bill text. We keep the source links front and center and leave the decision up to you.

Back to South Carolina

S771 • 2026

SC Military Retirement Tax Exemption

SC Military Retirement Tax Exemption

Taxes
Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor
Senators Zell, Walker and Grooms
Last action
2026-01-14
Official status
Scrivener's error corrected
Effective date
Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

SC Military Retirement Tax Exemption

SC Military Retirement Tax Exemption

What This Bill Does

  • SC Military Retirement Tax Exemption

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

  1. 2026-01-14 South Carolina Legislature

    Scrivener's error corrected

  2. 2026-01-13 Senate

    Introduced and read first time ( Senate Journal-page 48 )

  3. 2026-01-13 Senate

    Referred to Committee on Finance ( Senate Journal-page 48 )

Official Summary Text

SC Military Retirement Tax Exemption

Current Bill Text

Read the full stored bill text 
2025-2026 Bill 771: SC Military Retirement Tax Exemption - South Carolina Legislature Online

South Carolina General Assembly
126th Session, 2025-2026
Download
This Bill
in Microsoft Word Format
Indicates Matter Stricken
Indicates New Matter
S. 771
STATUS INFORMATION
General Bill
Sponsors: Senators Zell, Walker and Grooms
Document Path: SR-0090CEM26.docx
Introduced in the Senate on January 13, 2026
Currently residing in the Senate
Summary: SC Military Retirement Tax Exemption
HISTORY OF LEGISLATIVE ACTIONS

Date

Body

Action Description with journal page number

1/13/2026

Senate

Introduced and read first time (
Senate Journal-page 48
)

1/13/2026

Senate

Referred to Committee on
Finance
(
Senate Journal-page 48
)

1/14/2026

Scrivener's error corrected

View the latest
legislative information
at the website
VERSIONS OF THIS BILL
01/13/2026
01/14/2026

A bill

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY AMENDING
SECTION
12-6-1171
, RELATING TO THE MILITARY RETIREMENT INCOME DEDUCTION, SO AS
TO DEFINE A QUALIFIED MILITARY RETIREMENT PLAN TO INCLUDE PLANS FROM AN INDIVIDUAL'S
SERVICE IN THE ARMED SERVICES, USPHS, OR NOAA.

B
e it enacted by the
General Assembly of the State of South Carolina:

S
ECTION 1.
S
ection
12-6-1171
(B) of the S.C. Code is amended to
read:

(
B)
(
1)
The term "retirement income", as used in this section,
means the total of all otherwise taxable income not subject to a penalty for
premature distribution received by the taxpayer or the taxpayer's surviving
spouse in a taxable year from a qualified military retirement plan. For
purposes of a surviving spouse, "retirement income" also includes a retirement
benefit plan and dependent indemnity compensation related to the deceased
spouse's military service.

(
2) The term "qualified military
retirement plan" means retirement income from all uniformed services defined
under Title 38 of the United State Code and includes, but is not limited to,
individuals who served in the Armed Forces, the United States Public Health
Service Commissioned Corps, and the National Oceanic and Atmospheric
Administration Commissioned Corps.

S
ECTION 2. This act takes effect upon approval
by the Governor.

----XX----

This web page was last updated on January 14, 2026 at 5:53 PM