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.
For a side-by-side comparison of every state’s income tax rates, see state income tax rates by state 2026 and best and worst states for taxes 2026. Federal income tax applies on top of state taxes — see 2026 federal income tax brackets to calculate your combined liability.
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