HomeGuides › SC vs Tennessee
South Carolina vs Tennessee

South Carolina vs Tennessee

Tennessee has no income tax. South Carolina has lower property taxes and a coast. Here's the honest trade.

The short answer: Tennessee has no state income tax, which is a genuine advantage on earned income. South Carolina counters with a very low property tax burden (median $1,337), full Social Security exemption, no estate tax, an ocean, and — if you want a small town — three that are actively recruiting.

Head to head

Income taxTN none · SC 1.99% / 5.21%
Median property tax paidSC $1,337 · US median $3,211
Sales taxTN among the highest combined in the US · SC 6% state / 7.49% average combined, groceries exempt from the state rate
CoastSC ~187 miles of Atlantic coastline · TN landlocked
Population growth 2025SC #1 fastest-growing state (+1.5%)

Sources: Census ACS 2024, Tax Foundation, MERIC Q1 2026, NOAA, Census Vintage 2025.

Where Tennessee genuinely wins

Where South Carolina wins

How to decide

Still earning a large salary? Tennessee's zero income tax likely wins. Retired, or working remotely at a moderate income and buying a house you'll hold for twenty years? South Carolina's property tax structure, grocery exemption and retirement deductions can close and often reverse the gap — and you get an ocean.

Where this leads

Three towns are actively recruiting new neighbors.

Project Hometown SC works in three South Carolina communities. Each runs its own program, with its own resident ambassadors and its own application — those community sites are where you apply.

Not ready to apply? Read our background pages first: Cheraw · Hartsville · Walterboro

Have a question about the overall program rather than one town? Ask us directly →

Common questions

Is South Carolina or Tennessee cheaper for retirees?

Often South Carolina, despite Tennessee having no income tax — because Social Security is untaxed in both, and at 65+ South Carolina adds a $10,000 retirement-income deduction and a $15,000 age-65 deduction. Meanwhile SC's median property tax bill is $1,337, and the Homestead Exemption removes the first $50,000 of value at 65+.

Does South Carolina tax retirement income?

Social Security is fully exempt. Other retirement income qualifies for a deduction of up to $3,000/yr under 65 and up to $10,000/yr at 65+, plus a separate $15,000 age-65 deduction against any income. Military retirement pay is 100% exempt at any age.

Keep reading

Next step

Talk to someone who actually lives there.

Pick a community and a resident ambassador reaches out for a real conversation — no pitch, just questions and answers. Applications are handled on each town's own site.

Cheraw ↗ Hartsville ↗ Walterboro ↗