South Carolina Income Tax Calculator

Taxes in South Carolina

South Carolina State Tax Quick Facts

• Income tax: 0% - 6.4%
• Sales tax: 6% - 9%
• Property tax: 0.53% average 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 6.4% is one of the highest in the country, the bottom rate is the lowest. The state also has some of the lowest property and gas taxes in the country, but its total sales tax, when including local rates, ranks in the top 20 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. Note that 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.

These tax rates apply to South Carolina taxable income, which is equal to your federal taxable income, with a few exceptions. The following commonly claimed federal itemized deductions cannot be claimed in South Carolina and must be added back to South Carolina taxable income: state and local taxes, out-of-state losses, expenses related to reserve income and interest income. Taxpayers who claimed the federal standard deduction will receive the same deduction on their South Carolina income taxes.

There are also some adjustments that will reduce your South Carolina taxable income. These include subtractions for out-of-state rental or business income, contributions to the SC College Investment Program (or Tuition Repayment Program), interest from U.S. obligations (savings bonds, treasury notes, etc.) and Social Security income. Consider looking into online tax software to help file your tax returns.

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, except for hotels and motels, laundry services, electricity services and communications services (including TV and internet service). While groceries are typically exempt from the statewide sales tax, local tax rates still apply to all food. Automobiles, boats, aircraft and other recreational vehicles are subject to a sales tax cap of $500 and local taxes are not due on these purchases.

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 average effective property tax rate (annual taxes paid as a percentage of home value) is tied the fifth-lowest in the country at just 0.53%. South Carolinians pay an average of $1,138 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 $2.72 per gallon of liquor, 90 cents per gallon of wine and 77 cents per gallon of beer.

South Carolina Gas Tax

The state collects a gas excise tax of just 28.75 cents. That higher rate puts South Carolina’s gas slightly above the national average.

• 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.