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
Bracket thresholds below reflect the last confirmed structure — confirm exact current-year thresholds with the South Carolina Department of Revenue, as they are inflation-indexed annually.
| 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)
South Carolina’s deduction is intended to match the federal standard deduction amount. For 2026, that is $16,100 for single filers and $32,200 for married filing jointly. Confirm South Carolina still conforms to these updated 2026 federal figures with the South Carolina Department of Revenue, as this was not independently re-verified against a live South Carolina source this session:
| Filing Status | Standard Deduction (2026 federal-conforming, confirm current SC figure) |
|---|---|
| Single | $16,100 |
| Married Filing Jointly | $32,200 |
| Married Filing Separately | $16,100 |
| Head of Household | $24,150 |
South Carolina Retirement Income Benefits
Retirement Income Deduction
Confirm current-year deduction amounts with the South Carolina Department of Revenue, as these were the last confirmed figures:
| Age | Maximum Deduction (confirm current amount) |
|---|---|
| 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
- Retirement income up to the current deduction amount
- South Carolina municipal bond interest
South Carolina vs. Neighboring States
| State | Top Income Tax Rate (confirm current figures) |
|---|---|
| North Carolina | 3.99% (flat, cut from 4.25% in 2025) |
| Georgia | 4.99% (flat, cut from 5.19% in 2026) |
| 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
Confirm current state and combined local sales tax rates with the South Carolina Department of Revenue, as these were not independently re-verified this session. South Carolina has historically taxed groceries at a reduced rate, with some counties exempting them entirely.
South Carolina Property Tax
Confirm the current average effective property tax rate with the Tax Foundation or South Carolina Department of Revenue, as this figure was not independently re-verified this session. South Carolina property taxes have historically been below the national average.
Why Retirees Love South Carolina
| Tax Benefit | Details |
|---|---|
| Social Security | 100% exempt |
| Military retirement | 100% exempt |
| Other retirement | Confirm current deduction amount |
| Property tax | Historically low |
| No estate tax | None |
Tips to Reduce South Carolina Taxes
- Maximize retirement deductions — confirm current amounts
- 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 at the federal level
- 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 roughly $17,330. However, retirement income deductions, full Social Security exemption, and 100% military retirement exemption make it attractive for retirees. Combined with historically 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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