South Carolina uses a progressive state income tax system with rates ranging from 0% to 6.2%. The state has been gradually reducing its top rate from 7% and increasing the zero-bracket threshold, providing tax relief for lower-income workers.
South Carolina Tax Brackets
| Taxable Income | Tax Rate |
|---|---|
| $0 - $3,460 | 0% |
| $3,461 - $17,330 | 3% |
| Over $17,330 | 6.2% |
South Carolina simplified its tax brackets in recent years and continues to reduce rates. These figures are based on South Carolina Department of Revenue guidelines.
What You'll See on Your Paystub
A South Carolina worker's paystub includes both federal income tax withholding and state deductions:
| Deduction | Rate | Notes |
|---|---|---|
| Federal Income Tax | Varies | Based on W-4 and income |
| Social Security | 6.2% | Up to $181,200 wage base |
| Medicare | 1.45% | No wage limit |
| SC State Income Tax | 0% - 6.2% | Progressive based on income |
South Carolina Standard Deduction
South Carolina ties its standard deduction to the federal amount:
| Filing Status | Standard Deduction (2026) |
|---|---|
| Single | $15,000 |
| Married Filing Jointly | $30,000 |
| Head of Household | $22,500 |
South Carolina conforms to the federal standard deduction, which simplifies tax preparation and provides substantial tax-free income.
No Local Income Taxes
South Carolina does not allow cities or counties to impose local income taxes. Your state withholding covers all South Carolina income tax obligations.
Charleston Area Workers
Charleston is a growing hub for tech, aerospace, and tourism:
- No city income tax
- Boeing and Volvo manufacturing facilities
- Growing tech sector downtown
- Significant tourism and hospitality workforce
Greenville-Spartanburg Workers
The Upstate region has a strong manufacturing base:
- BMW, Michelin, and other international manufacturers
- No city income taxes in Greenville or Spartanburg
- Lower cost of living than coastal areas
- Growing healthcare sector
Columbia Metro Workers
The state capital has unique employment considerations:
- State government is a major employer
- University of South Carolina adds education jobs
- Fort Jackson military installation nearby
- No city income tax
Retirement Income
South Carolina offers excellent tax benefits for retirees:
- Social Security benefits are fully exempt
- Up to $10,000 retirement income deduction (under age 65)
- Unlimited retirement income deduction (age 65+)
- Military retirement pay is fully deductible
South Carolina's retirement income deduction is one of the most generous in the country, making it popular among retirees relocating from higher-tax states.
Military Personnel
South Carolina has several military installations and offers benefits for service members:
- Active duty pay from non-resident military is exempt
- Military retirement pay is fully deductible
- Fort Jackson (Army), Joint Base Charleston, and others
- No local taxes on military pay
Border State Workers
South Carolina does not have reciprocity agreements with neighboring states:
- Live in SC, work in NC: File returns in both states; SC gives credit for NC taxes paid
- Live in SC, work in GA: File returns in both states; SC gives credit for GA taxes paid
- Live in NC, work in SC: File returns in both states; NC gives credit for SC taxes paid
The Charlotte metro area spans both NC and SC. Workers who cross the border for work should plan for filing in both states.
South Carolina vs. Neighboring States
| State | Tax Structure | Top Rate |
|---|---|---|
| South Carolina | Progressive | 6.2% |
| North Carolina | Flat | 4.5% |
| Georgia | Flat | 5.39% |
Comparing Take-Home Pay
Here's how a $75,000 annual salary compares across neighboring states:
| State | Effective Rate | Annual State Tax |
|---|---|---|
| South Carolina | ~4.5% | ~$3,400 |
| North Carolina | ~3.7% | ~$2,800 |
| Georgia | ~4.5% | ~$3,400 |
While South Carolina's top marginal rate is higher than neighbors, the generous standard deduction and zero bracket help lower effective rates for middle-income earners.
Planned Rate Reductions
South Carolina continues to phase in rate reductions:
| Year | Top Tax Rate |
|---|---|
| 2026 | 6.2% |
| 2027 | 5.9% |
| Long-term goal | Flat tax or further reduction |