South Carolina state tax: Overview
South Carolina state tax is relatively low for homeowners, given property taxes are lower than in most other states. South Carolina is also a state where you'll pay less income tax this year. That's because the income tax rate for the highest state tax bracket was reduced by 0.5% for 2023.
Not all South Carolina state taxes are low, however. For example, the gas tax in South Carolina is higher than in many other states.
[Data for this state tax guide was gathered from a number of sources including the Census Bureau, the state’s government website, the Sales Tax Handbook, and the Tax Foundation. Property taxes are cited as a rate percentage rather than the assessed value.]
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South Carolina income taxes
South Carolina's top income tax bracket was recently reduced from 7% to 6.5%. This tax rate could be reduced further through 2027, but this possible reduction is based on South Carolina's tax revenue over the next few years.
South Carolina Income tax Range
| Up tp $3,200 | 0% |
| $3,200 to $16,040 | 3% |
| More than $16,040 | 6.5% |
South Carolina tax on retirement income: Social Security, Military retirement income, and Railroad retirement benefits are fully exempt.
South Carolina sales tax
South Carolina's state sales tax rate is 6%. Localities can add as much as 3%, and the average combined rate is 7.499%, according to the Tax Foundation.
- Groceries are tax-exempt.
- Prescription drugs are tax-exempt.
- Women's menstrual products are taxable.
- Diapers are taxable.
How much are property taxes in South Carolina?
In South Carolina, the average effective tax rate is 0.56%, which is lower than in most states. However, inflation is causing property taxes to increase in some areas, such as in Lexington and Horry counties.
South Carolina Property Tax Breaks for Retirees
For qualified homeowners 65 and older (or for those with a permanent and total disability), South Carolina's homestead exemption allows the first $50,000 of a property's fair market value to be exempt from local property taxes.
South Carolina gas taxes (motor fuel)
Gasoline: $0.2875 per gallon
Diesel: $0.2875 per gallon
South Carolina taxes on alcohol and tobacco
| Cigarettes | $0.57 per pack |
| Other tobacco products | 5% of manufacturer's price |
| Beer | $0.77 per gallon |
| Wine | $0.90 per gallon |
| Liquor | $2.72 per gallon |
South Carolina estate and inheritance taxes
South Carolina doesn't have an estate or an inheritance tax.
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