South Carolina state tax: Overview
South Carolina state tax is reasonable (compared to most other states) when it comes to property taxes. Additionally, the Palmetto State reduced the tax rate for its top income tax bracket for the 2024 tax year.
Not all South Carolina state taxes are low, however. For example, the gas tax in South Carolina is higher than in many other states.
[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.]
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
South Carolina income taxes
South Carolina's top income tax bracket was previously (last year) reduced to 6.5%. This tax rate could be reduced further through 2027, but this possible reduction is based on South Carolina's tax revenue over the next few years.
So, if you are making an estimated tax payment for 2024, the state's Department of Revenue says the Individual Income tax rate range in South Carolina is from 0% to a top rate of 6.2% for the 2024 tax year.
South Carolina income taxes in retirement: Social Security, Military retirement income and Railroad retirement benefits are fully exempt.
- 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 3%, and the average combined rate is 7.5%, according to the Tax Foundation.
- Groceries: Exempt
- Clothing: Taxable
- Prescription drugs: Exempt
- Women's menstrual products: Taxable
- Diapers: Taxable
How much are property taxes in South Carolina?
In South Carolina, the average effective tax rate is 0.57%, 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 taxes
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.
Related Content
-
What's at Stake for Alphabet as DOJ Eyes Google's ChromeAlphabet is higher Tuesday even as antitrust officials at the DOJ support forcing Google to sell its popular web browser. Here's what you need to know.
-
Lowe's Stock Is Falling After Earnings. Here's WhyLowe's stock is lower Tuesday as Wall Street weighs a beat-and-raise quarter against declining revenue. This is what you need to know.
-
Premium Tax Credit: Are You Eligible For This Health Insurance Tax Break?Tax Credits The tax credit can help qualifying individuals pay for coverage from the Affordable Care Act’s health insurance marketplace.
-
FSA Contribution Limits Are Higher for 2025FSA A flexible spending account allows you to build tax-free savings for certain medical expenses.
-
Florida Tax Deadline Extension: What You Need to KnowTax Relief The IRS extended federal tax return file time due to severe storms.
-
IRS: Here’s How to Recover Your Tax Records After a Natural DisasterTax Records Your tax documents can help you get federal relief faster, the IRS says.
-
Voters Approve New Veteran Property Tax ReliefTax Relief Thanks to the election, some Veterans will soon see expanded property tax exemptions.
-
Nevada Approves Diaper Tax Relief Amid Childcare CrisisTax Relief Nevada voters have expanded sales tax relief to diapers. But are prices still too high?
-
Earned Income Tax Credit (EITC) 2024: How Much Will You Get?Tax Credits The refundable amount for workers with or without children is slightly higher this year. Here’s what you need to know.
-
IRS Expands Tax Breaks for Breast Cancer Screenings, ContraceptivesHealthcare Now you can get a tax deduction or reimbursement for certain medical expenses, like over-the-counter birth control and condoms.
