South Carolina Income Tax Calculator

Taxes in South Carolina

South Carolina State Tax Quick Facts

• Income tax: 0% - 6.2%
• Sales tax: 6% - 13%
• Property tax: 0.45% median effective rate
• Gas tax: 28.75 cents per gallon of regular gasoline

With its sandy beaches and warm weather, South Carolina can be an attractive choice for outsiders looking to relocate. The state’s license plates read, “Smiling Faces, Beautiful Places,” but is the tax system in the Palmetto State as welcoming to newcomers as the scenery and people? The answer depends on the specifics of your situation.

While South Carolina’s top income tax of 6.2% is one of the higher top rates in the country, the bottom rate is the lowest. The state also has some of the lowest property taxes in the country, but its total sales tax, when including local rates, is 18th highest across the country.

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South Carolina Income Taxes

Like the federal income tax, the South Carolina state income tax applies marginal tax rates based on income tax brackets. So as income increases to higher brackets, so does the percentage of income you pay in taxes. The table below shows the tax rates for all income earners in South Carolina. South Carolina does not differentiate between filing statuses such as single, married filing jointly or head of household. These tax brackets apply regardless of your filing status.

South Carolina begins its income tax calculation with your federal taxable income and then applies a set of state-specific additions and subtractions. Some federal deductions are not allowed when determining South Carolina taxable income, including the deduction for state and local income taxes that you may have taken on your federal return. Because South Carolina uses federal taxable income as its starting point, taxpayers who claimed the federal standard deduction do not choose a separate state-level standard deduction. 

South Carolina also provides a number of adjustments that can reduce your state taxable income. These include subtractions for Social Security benefits, interest from U.S. government obligations (such as Treasury bills and savings bonds), and certain types of retirement income, which may qualify for a deduction depending on your age and filing status. Contributions to the South Carolina College Investment Program (529 plan) are also deductible for state tax purposes.

South Carolina Sales Tax

If you want to make a purchase in South Carolina, you’ll need to pay state and local sales taxes. The state sales tax rate is 6%, which is about average for U.S states. However, South Carolina counties can elect to have a “local option tax” on general sales. The table below shows the state and local sales tax rates for all 46 South Carolina counties:

Most services and retail goods are taxable in South Carolina, groceries and prescription drugs are exempt. Over-the-counter medications are taxable, though. 

South Carolinians looking for a break from sales tax get one weekend of sales-tax-free purchases of certain items. The sales tax holiday begins on the first Friday in August and runs through the weekend. During that time, purchases of clothing, school supplies, computers, linens and bathroom items (such as towels, shower curtains and bath mats) are exempt from sales tax.

South Carolina Property Tax

By law, the local option sales taxes in South Carolina are enacted in order to reduce county property taxes. That, in part, explains why property taxes in the Palmetto State are so low. The state’s median effective property tax rate (annual taxes paid as a percentage of the median home value) is tied for the fifth-lowest in the country at just 0.45%. South Carolinians pay an average of $1,337 a year in property taxes.

Whether you’re looking to buy your dream vacation home in Myrtle Beach or refinance your current home in Charleston, take a look at our our South Carolina mortgage guide to learn all the details about mortgages in the state.

South Carolina Capital Gains Tax

Capital gains are taxed at two different levels in South Carolina. First, short-term capital gains (those realized in less than a year) are considered normal taxable income and taxed at the rates listed above. For long-term gains, 44% of the “net capital gain” is exempt. The net capital gain is the net long-term gain (of more than a year) minus any short-term loss for the taxable year.

South Carolina Cigarette Tax

The South Carolina cigarette tax is 57 cents per pack of 20. That’s one of the lowest rates in the country.

South Carolina Alcohol Tax

Alcoholic beverage excise and sales taxes in South Carolina are among the highest in the U.S. In addition to general state and local sales taxes, the state collects excise taxes of $5.42 per gallon of liquor, 90 cents per gallon of wine and 76.8 cents per gallon of beer.

South Carolina Gas Tax

The state collects a gas excise tax of just 28.75 cents per gallon.

• Before being known as the Palmetto State, South Carolina’s nickname was the Iodine State. The current nickname refers to the state tree, while the former refers to the large amount of iodine found in the state’s vegetation.
• Fort Sumter, in Charleston Harbor, is the site of the first shots fired during the American Civil War. They began the Battle of Fort Sumter on April 12, 1861.