South Carolina has progressive income tax rates from 0% to 6.4% — with generous exemptions for retirees and military.
South Carolina Income Tax Rates for 2026
| Taxable Income | Tax Rate |
|---|---|
| $0 - $3,460 | 0.0% |
| $3,460 - $6,920 | 3.0% |
| $6,920 - $10,380 | 4.0% |
| $10,380 - $13,840 | 5.0% |
| $13,840 - $17,330 | 6.0% |
| Over $17,330 | 6.4% |
Note: South Carolina uses the same brackets for all filing statuses.
South Carolina Tax Calculator Examples
Example 1: $75,000 Single Filer
| Component | Calculation |
|---|---|
| Taxable income | $75,000 |
| Tax on first $17,330 | $628 |
| Tax on remaining ($75,000 - $17,330) × 6.4% | $3,691 |
| Total SC state tax | $4,319 |
| Effective rate | 5.76% |
Example 2: $100,000 Married Filing Jointly
| Component | Calculation |
|---|---|
| Taxable income | $100,000 |
| Tax on first $17,330 | $628 |
| Tax on remaining ($100,000 - $17,330) × 6.4% | $5,291 |
| Total SC state tax | $5,919 |
| Effective rate | 5.92% |
South Carolina Standard Deduction (2026)
| Filing Status | Standard Deduction |
|---|---|
| Single | $14,600 |
| Married Filing Jointly | $29,200 |
| Married Filing Separately | $14,600 |
| Head of Household | $21,900 |
South Carolina’s deductions match federal amounts.
South Carolina Retirement Income Benefits
Retirement Income Deduction
| Age | Maximum Deduction |
|---|---|
| Under 65 | $10,000 |
| 65 or older | $15,000* |
| Married (both 65+) | $30,000* |
*Additional deductions available
Social Security
Fully exempt — South Carolina does not tax Social Security benefits.
Military Retirement
- 100% exempt from South Carolina income tax
- No income limits or age requirements
What Income is Taxed in South Carolina?
Taxed:
- Wages and salaries
- Self-employment income
- Interest and dividends
- Capital gains (taxed as ordinary income)
- Retirement income (above deductions)
- Rental income
Not taxed or exempt:
- Social Security — Fully exempt
- Military retirement — Fully exempt
- First $10,000-$15,000 of other retirement income
- South Carolina municipal bond interest
South Carolina vs. Neighboring States
| State | Top Income Tax Rate |
|---|---|
| North Carolina | 5.25% (flat) |
| Georgia | 5.49% |
| South Carolina | 6.4% |
| Tennessee | 0% (no income tax) |
| Florida | 0% (no income tax) |
South Carolina has higher income taxes than neighbors, but retirement benefits offset this for retirees.
Filing South Carolina State Taxes
| Filing Requirement | Details |
|---|---|
| Form | SC1040 |
| Due date | April 15 (with federal) |
| E-file | Yes, through SC DOR |
| Extension | Automatic if federal extension filed |
South Carolina Sales Tax
- State rate: 6%
- Local option: Up to 3% additional
- Total possible: 9%
- Groceries taxed at reduced rate (some counties exempt)
South Carolina Property Tax
- Average effective rate: ~0.53% (below national average)
- Homestead exemption for 65+
- Lower than most Southeast states
Why Retirees Love South Carolina
| Tax Benefit | Details |
|---|---|
| Social Security | 100% exempt |
| Military retirement | 100% exempt |
| Other retirement | $10,000-$15,000 exempt |
| Property tax | Low (0.53% avg) |
| No estate tax | None |
| Cost of living | Below national average |
Tips to Reduce South Carolina Taxes
- Maximize retirement deductions — $10,000-$15,000 exempt
- Wait until 65 — Additional deductions available
- Military benefits — Full exemption on retirement pay
- Max 401(k)/IRA contributions — Reduces taxable income
- HSA contributions — Triple tax advantage
- Consider property tax exemptions — Homestead benefits
South Carolina Tax Authority
South Carolina Department of Revenue
- Website: dor.sc.gov
- Phone: 803-898-5709
- For refunds, returns, and questions
Bottom Line
South Carolina has progressive income tax rates from 0% to 6.4%, with the top rate applying to income over just $17,330. However, generous retirement income deductions ($10,000-$15,000), full Social Security exemption, and 100% military retirement exemption make it attractive for retirees. Combined with low property taxes, South Carolina is a tax-friendly destination for those in retirement.