Navigating the complexities of state taxes can be daunting, but understanding South Carolina's tax landscape is essential for residents and newcomers alike.
In this guide, we'll explore key components of The Palmetto State's tax system, from income and sales taxes to property taxes and retirement benefits.
South Carolina state tax: Overview
Thinking about moving to South Carolina or just curious how it stacks up tax-wise? Good news first: property taxes here are pretty reasonable compared to much of the country.
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But it’s not all sunshine and savings. Some taxes, like the state’s gas tax, are still on the higher side compared to other states. So while you might save on your home, filling up your tank could cost you a bit more.
In the news: After lowering income taxes last year, South Carolina residents might soon receive another tax cut. A new legislation cuts the state’s top income tax rate by more than 2% and includes future reductions if certain income limits are met.
For more information, see New South Carolina Income Tax Cut Might Eat Your Cash.
[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.]
South Carolina income taxes
South Carolina currently has a graduated state individual income tax rate ranging from 0% to 6.40%. Recently, a bill was released that will collapse the state's income tax rate to a fixed rate of 3.99% that will go into effect in early 2026.
South Carolina retirement taxes
South Carolina offers a retirement income exclusion of up to $15,000. If you have taxable income that exceeds that amount, you’ll pay income taxes in South Carolina.
- Tax on Taxable Income: Low of 0% (on up to $3,460) and a high of 6.2% (on more than $17,330)
- Social Security: Not taxable
- Pensions: Partially taxable
- 401(k) and IRA Distributions: Partially taxable
South Carolina sales tax
South Carolina's state sales tax rate is 6%. Localities can add as much as 1.50%, and the average combined rate is 7.5%, according to the Tax Foundation.
- Groceries: Exempt
- Clothing: Taxable
- Prescription drugs: Exempt
How much are property taxes in South Carolina?
In South Carolina, the average effective tax rate is 0.46%, which is lower than in most states.
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 tax
Gasoline: $0.16 per gallon
Diesel: $0.16 per gallon
Source: Sales Tax Handbook
South Carolina taxes on alcohol and tobacco
Product | Tax Amount |
|---|---|
Cigarettes | $0.57 per pack |
Other tobacco products | 5% of manufacturer's price |
Source: Sales Tax Handbook
Product | Tax Amount |
|---|---|
Beer | $0.77 per gallon |
Wine | $0.90 per gallon |
Liquor | $2.72 per gallon |
Source: Sales Tax Handbook
South Carolina estate and inheritance taxes
South Carolina doesn't have an estate or an inheritance tax.
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