How Much Is South Carolina State Tax?

Understanding South Carolina state taxes is essential for residents and those considering a move. These taxes fund public services like education, infrastructure, and public safety. A clear grasp of the state’s tax structure allows for informed personal financial planning and budgeting.

Understanding South Carolina Individual Income Tax

South Carolina operates a progressive individual income tax system, with higher income levels subject to higher tax rates. For 2024, the state’s income tax is structured across three primary brackets, with a top marginal rate of 6.2% on taxable income. South Carolina applies the same tax brackets regardless of filing status.

Taxpayers can reduce taxable income through deductions and exemptions. While South Carolina does not offer a standard deduction, it allows a dependent exemption of $4,790 for each eligible dependent in 2024. Contributions to the state’s College Investment Program (Future Scholar) or the SC Tuition Prepayment Program are fully tax-deductible.

Retirees benefit from specific income exclusions. Social Security benefits are entirely exempt from state income tax. Individuals aged 65 and older can claim a retirement income exclusion of up to $15,000, applicable to pensions, 401(k)s, and IRAs. Taxpayers under 65 can deduct up to $3,000 of qualified retirement income.

Several tax credits further reduce an individual’s tax owed. Married couples where both spouses earn income may qualify for the two-wage earner credit, which is 0.7% of the lesser of $50,000 or the lower-earning spouse’s qualified income, capped at $350. The state also provides an Earned Income Tax Credit (EITC) set at 125% of the federal EITC for full-year residents. A Child and Dependent Care Credit, calculated at 7% of federal expenses, offers a maximum credit of $210 for one child or $420 for two or more children.

South Carolina Sales Tax Explained

South Carolina imposes a statewide general sales tax rate of 6% on most retail sales. The total sales tax rate can vary depending on the specific location of a purchase.

Counties and some municipalities can levy additional local option sales taxes. These taxes are imposed following a voter referendum and often fund specific local projects or reduce property tax burdens. While local rates increase the overall sales tax, the statewide 6% remains constant.

Certain categories of goods and services are exempt from South Carolina sales tax. Most unprepared food items, or groceries, are exempt. Prescription medications, medical devices, and supplies are also exempt.

The state also levies an accommodations tax of 2% on charges for rooms, campground spaces, and other transient sleeping accommodations. Local governments can impose an additional accommodations tax, with a cumulative rate not exceeding 3%.

South Carolina Property Tax Fundamentals

Property taxes in South Carolina are primarily assessed and collected at the local government level by counties, municipalities, and school districts. The framework for property taxation is established by state law.

Property tax assessment is based on the “fair market value” of the property. Local assessors determine this value, which serves as the basis for calculating the assessed value. The assessed value is then derived by applying specific assessment ratios mandated by the state constitution.

South Carolina differentiates property types with varying assessment ratios. Owner-occupied primary residences are assessed at 4% of their fair market value. Second homes, rental properties, commercial properties, and vacant land are assessed at 6%. Homeowners should apply with their county assessor’s office to ensure their primary residence receives the lower 4% assessment ratio.

Qualifying senior citizens, totally and permanently disabled individuals, or those who are legally blind may be eligible for the Homestead Exemption. This exemption reduces the assessed value of an owner-occupied primary residence by the first $50,000 of its fair market value. Property tax bills are determined by applying the local “millage rate” to the assessed value, where a mill represents one dollar of tax per $1,000 of assessed value.

Other Notable South Carolina State Taxes

Beyond income, sales, and property taxes, South Carolina implements other state-level taxes. The state’s gasoline tax, often referred to as a user fee, contributes to infrastructure maintenance. As of 2024, the total gasoline tax rate is 28.75 cents per gallon, including a base user fee and an inspection fee.

When purchasing motor vehicles, South Carolina levies an Infrastructure Maintenance Fee (IMF) instead of a traditional sales tax. This IMF is 5% of the vehicle’s purchase price, capped at $500 per vehicle. This cap applies to all types of motor vehicles, including cars, aircraft, and boats. Additionally, South Carolina does not impose a state-level estate or inheritance tax.