South Carolina Income Tax Calculator
Tax Breakdown
South Carolina Tax Overview
South Carolina Income Tax Brackets 2026
South Carolina has a graduated income tax system that has been undergoing reform in recent years. The state has been working to reduce its top rate from a historic high of 7%. For 2026, the top marginal rate is 6.4% on taxable income over $17,330. The first $3,460 of taxable income is tax-free for all filers, providing built-in relief for low-income taxpayers.
| Taxable Income | Rate |
|---|---|
| $0 – $3,460 | 0.00% |
| $3,460 – $17,330 | 3.00% |
| $17,330+ | 6.40% |
South Carolina Deductions and Credits
South Carolina conforms to the federal standard deduction and personal exemptions. The state also offers numerous tax credits including an earned income tax credit equal to approximately 20.8% of the federal EITC, a two-wage earner credit for working couples, and a credit for taxes paid to other states. South Carolina uses federal adjusted gross income as the starting point for calculating state taxable income, simplifying the filing process.
South Carolina Sales Tax
South Carolina's state sales tax rate is 6%. Local jurisdictions (counties and municipalities) can impose additional sales taxes, typically ranging from 1% to 3%, bringing the combined rate in many areas to between 7% and 9%. The average combined rate statewide is approximately 7.43%.
Key Sales Tax Details
- Groceries — Taxed at a reduced rate of just 1% (no local taxes apply to groceries)
- Vehicle purchases — Subject to a maximum tax of $500 (capped Infrastructure Maintenance Fee), regardless of price
- Prescription medications — Exempt from sales tax
- Manufacturing machinery — Exempt, supporting the state's manufacturing sector
The vehicle sales tax cap is one of South Carolina's most distinctive features. Whether you purchase a $20,000 sedan or a $100,000 luxury vehicle, the maximum sales tax is $500. This makes South Carolina one of the most affordable states for purchasing vehicles.
South Carolina Property Tax
South Carolina has one of the lowest effective property tax rates in the nation at approximately 0.55%. This is due to a unique assessment ratio system and generous homestead exemptions. Owner-occupied homes are assessed at only 4% of fair market value, while second homes and commercial properties are assessed at 6%.
Homestead Exemption
The state provides a homestead exemption that eliminates school operating taxes on the first $50,000 of a primary residence's fair market value. For seniors (65+), disabled persons, and qualifying veterans, an additional homestead exemption of $50,000 is available, further reducing the tax burden. These exemptions, combined with the low assessment ratio, create one of the most favorable property tax environments in the country.
South Carolina Retirement Tax Benefits
South Carolina is widely regarded as one of the most retirement-friendly states in the Southeast. The state offers several significant tax benefits for retirees:
- Social Security — 100% exempt from South Carolina income tax
- Retirement income deduction — Taxpayers 65+ can deduct up to $10,000 of qualified retirement income (pension, 401k, IRA)
- General senior deduction — Additional $15,000 deduction for all taxpayers age 65 and older
- Military retirement — Fully exempt from South Carolina income tax
- Property tax relief — Enhanced homestead exemption for seniors 65+
These benefits, combined with the state's low property taxes, mild climate, and relatively low cost of living, have made communities like Hilton Head, Myrtle Beach, and Charleston top retirement destinations in the United States.
South Carolina vs. Neighboring States
- North Carolina — 4.5% flat income tax (lower than SC's top rate), 4.75% sales tax + local, 0.80% property tax. NC has lower income tax for high earners but higher property taxes. SC is generally better for retirees.
- Georgia — Graduated 1%-5.49% income tax, 4% sales tax + local, 0.83% property tax. Georgia has a lower top income tax rate and comparable sales tax, but significantly higher property taxes.
- Tennessee — No income tax, 7% sales tax + local (avg ~9.55%), 0.56% property tax. Tennessee wins on income tax but has much higher combined sales tax rates.
Use our state comparison calculator to see the exact tax differences for your specific situation.
Frequently Asked Questions
South Carolina has graduated rates from 0% to 6.4%. The first $3,460 is tax-free, then 3% up to $17,330, and 6.4% on income above $17,330.
The state rate is 6% plus local additions up to 3%. The average combined rate is about 7.43%. Groceries are taxed at just 1%, and vehicle sales tax is capped at $500.
Yes. At approximately 0.55% effective rate, SC has one of the lowest property tax rates nationally. Owner-occupied homes are assessed at just 4% of market value with a $50,000 homestead exemption.
SC is very retirement-friendly. Social Security is fully exempt. Taxpayers 65+ get up to $10,000 retirement income deduction plus an additional $15,000 senior deduction. Military retirement is fully exempt.
NC has a lower flat income tax (4.5%) but higher property taxes (0.80% vs. 0.55%). SC offers better retirement tax breaks. Overall, SC tends to favor retirees while NC may be better for high-income workers.