Key Tax Facts: South Carolina
- Top rate of 6% for tax year 2025, cut from 6.2% by budget proviso
- Retirement income deduction: up to $15,000 for those 65+ (or $3,000 under 65)
- Social Security benefits are fully exempt
- Military retirement pay fully exempt
South Carolina State Income Tax Overview
South Carolina has a graduated income tax with three brackets for tax year 2025: 0% on the first $3,560 of taxable income, 3% from $3,560 to $17,830, and a 6% top rate above $17,830. The top rate was cut from 6.2% to 6% by budget proviso, continuing a phase-down from 7% that began in 2021, with further reductions tied to revenue triggers. South Carolina starts from federal taxable income, so the federal standard deduction of $15,000 for single filers and $30,000 for joint filers carries through, and the state adds a $4,790 dependent exemption. South Carolina fully exempts Social Security benefits and offers a retirement income deduction of up to $10,000 for filers 65 and older.
South Carolina Income Tax Brackets (2025)
These are the South Carolina state income tax brackets for tax year 2025. South Carolina applies the same brackets to all filing statuses. Only the income within each bracket is taxed at that rate -- not your entire income.
| Taxable Income | Tax Rate |
|---|---|
| $0 - $3,560 | 0% |
| $3,560 - $17,830 | 3% |
| Over $17,830 | 6% |
Source: South Carolina Department of Revenue. South Carolina applies these brackets to all filing statuses.
What a South Carolina Resident Actually Pays: A Worked Example
Your effective tax rate is almost always lower than your top bracket. Here is how the math works for a single filer earning $65,000.
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Frequently Asked Questions -- South Carolina Income Tax
Does South Carolina have a state income tax?
Yes. South Carolina imposes a state income tax with a top marginal rate of 6%. This is separate from your federal income tax obligation.
What is the South Carolina income tax rate for 2025?
South Carolina uses a graduated income tax system with rates from 0% to 6%. Only the income within each bracket is taxed at that bracket's rate -- not your entire income.
Do I have to file a South Carolina state tax return?
Most full-year South Carolina residents with income above the state filing threshold must file a state return. Check the South Carolina Department of Revenue for current thresholds and requirements.
How accurate is this estimate?
This is a planning estimate of your federal income tax only. It does not calculate South Carolina state tax, and it does not account for state deductions, credits, exemptions, or local taxes. Use the South Carolina rate schedule above as a reference, and verify with official South Carolina tax forms or a qualified tax professional.
Does this calculator include federal income tax?
Yes. The calculator estimates your 2025 federal income tax using the official IRS 2025 brackets. It does not compute your South Carolina state tax -- see the South Carolina rate schedule below to work that out.
Where can I find official South Carolina tax forms?
Official forms, instructions, and filing guidance are available at the South Carolina Department of Revenue.
What is the sales tax rate in South Carolina?
South Carolina's combined state and average local sales tax rate is 7.44%. This is separate from income tax and applies to most retail purchases -- use our sales tax calculator to check a specific purchase.
When are South Carolina 2025 state taxes due?
2025 taxes are generally filed in 2026. The South Carolina filing deadline is April 15, 2026, the same as the federal deadline.
Understanding Your South Carolina Tax Estimate
Your results combine two separate bills: federal tax owed to the IRS, and South Carolina state tax owed to the South Carolina Department of Revenue. The state return is filed separately from your federal Form 1040, with a state filing deadline of April 15. For the mechanics of how bracket math actually works -- why your effective rate is almost always lower than your top bracket -- see our marginal vs. effective tax rate guide.
Lowering Your South Carolina Bill
Pre-tax retirement contributions reduce your federal and South Carolina taxable income in the same move -- see our 401(k) contribution limits and HSA limits guides for the current caps. Beyond that, South Carolina-specific credits and deductions that don't exist at the federal level are listed at the South Carolina Department of Revenue -- worth checking, since these are easy to miss if you only look at federal guidance.
Combined Sales + Income Tax Picture
South Carolina's combined state-plus-average-local sales tax rate is 7.44%. If you're self-employed, that's an added layer on top of income tax -- our self-employment tax calculator covers the SE-specific piece separately.
Disclaimer: Estimates for educational purposes only. State tax results are approximations based on published bracket data and do not account for all deductions, credits, exemptions, local taxes, or individual situations. Not tax, legal, or financial advice. Consult the South Carolina Department of Revenue or a qualified tax professional for guidance specific to your situation.