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
Estimate Your 2026 Federal and South Carolina State Income Tax
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.
What Is Different About South Carolina's Income Tax
Deductions and exemptions
South Carolina uses the federal standard deduction and allows federal itemized deductions with state tax removed. The state's 2025 top rate of 6.2% applies above roughly $17,830 of taxable income, and dependent exemptions of about $4,790 apply per dependent. Under 2025 legislation the top rate continues to fall toward 6%.
Credits worth knowing
South Carolina's earned income credit is 125% of the federal credit but non-refundable, so it can only reduce tax to zero. A two-wage-earner credit helps married couples, and there are credits for child and dependent care, tuition, and taxes paid to other states.
Retirement, capital gains, and other income
Social Security is exempt. Taxpayers 65 and older can deduct up to $15,000 of income from any source, and younger retirees can deduct up to $3,000 of retirement income. Military retirement pay is fully exempt. South Carolina excludes 44% of net long-term capital gains from taxable income.
Rules summarized from the South Carolina Department of Revenue guidance for tax year 2026. Amounts that index annually are described in general terms; confirm the current figure on the official form instructions.
South Carolina Income Tax Brackets (2026) projected
These are the South Carolina state income tax brackets for tax year 2026. South Carolina applies the same brackets to all filing statuses, carried forward from 2025 pending official 2026 figures. 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.
Where South Carolina Stands Among the 50 States
South Carolina's top rate of 6% ranks #13 of the 41 states that tax wages. The median top rate across those 41 states is 5.2%, so South Carolina is above the middle of the pack. It is one of 27 states with a graduated schedule, using 3 brackets; the top rate starts at $17,830 of taxable income, and the lowest bracket ends at $3,560.
On sales tax the picture is different: South Carolina's combined state and average local rate of 7.44% ranks #18 of 50, against a national median of 7.00%.
South Carolina State Tax at Five Income Levels (2026, single filer)
| Taxable income | South Carolina tax | Effective rate | Marginal rate |
|---|---|---|---|
| $40,000 | $1,758 | 4.40% | 6% |
| $65,000 | $3,258 | 5.01% | 6% |
| $100,000 | $5,358 | 5.36% | 6% |
| $150,000 | $8,358 | 5.57% | 6% |
| $250,000 | $14,358 | 5.74% | 6% |
Brackets applied directly to the taxable-income figure shown, before South Carolina-specific deductions, exemptions, or credits. Federal tax is separate and comes on top of every row.
South Carolina vs. Its Neighbors on $75,000 of Taxable Income
A South Carolina resident with $75,000 of taxable income pays about $3,858 in state income tax. Of South Carolina's 2 neighboring states, 1 would tax that income less and 1 would tax it more.
| State | Structure | Tax on $75,000 | Top rate | Sales tax |
|---|---|---|---|---|
| South Carolina (you) | Graduated | $3,858 | 6% | 7.44% |
| North Carolina | Rate to 4.25% | $3,188 | 4.25% | 6.99% |
| Georgia | Rate to 5.19% | $3,893 | 5.19% | 7.36% |
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 2026?
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?
The federal figure uses the official IRS 2026 brackets and standard deduction. The South Carolina figure applies the 2026 single-filer rate schedule to the same taxable income; it does not model South Carolina-specific deductions, exemptions, credits, or local income taxes, so treat it as a planning number and confirm with the South Carolina Department of Revenue or a tax professional before filing.
How does South Carolina compare with nearby states?
On $75,000 of taxable income, South Carolina collects about $3,858. North Carolina collects $3,188, Georgia collects $3,893. See the comparison table above.
Where does South Carolina rank on state income tax?
South Carolina's top rate of 6% ranks #13 of the 41 states with an income tax, against a median top rate of 5.2%. Its combined sales tax of 7.44% ranks #18 of 50.
Does this calculator include federal income tax?
Yes. It estimates your 2026 federal income tax using the official IRS 2026 brackets, then applies the South Carolina rate schedule to the same taxable income and shows both figures plus the combined total.
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 2026 state taxes due?
2026 taxes are generally filed in 2027. The South Carolina filing deadline is April 15, 2027, 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.