South Carolina state tax: Overview
Thinking about moving to South Carolina or just curious how it stacks up tax-wise? Good news first: property taxes here are pretty reasonable compared to much of the country.
But it’s not all sunshine and savings. Some taxes, like the state’s gas tax, are still on the higher side compared to other states. So while you might save on your home, filling up your tank could cost you a bit more.
In the news: After lowering income taxes last year, South Carolina residents might soon receive another tax cut. A new legislation cuts the state’s top income tax rate by more than 2% and includes future reductions if certain income limits are met.
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.
For more information, see New South Carolina Income Tax Cut Might Eat Your Cash.
[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.]
South Carolina income taxes
South Carolina currently has a graduated state individual income tax rate ranging from 0% to 6.40%. Recently, a bill was released that will collapse the state's income tax rate to a fixed rate of 3.99% that will go into effect in early 2026.
South Carolina retirement taxes
South Carolina offers a retirement income exclusion of up to $15,000. If you have taxable income that exceeds that amount, you’ll pay income taxes in South Carolina.
- Tax on Taxable Income: Low of 0% (on up to $3,460) and a high of 6.2% (on more than $17,330)
- 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 1.50%, and the average combined rate is 7.5%, according to the Tax Foundation.
- Groceries: Exempt
- Clothing: Taxable
- Prescription drugs: Exempt
How much are property taxes in South Carolina?
In South Carolina, the average effective tax rate is 0.46%, 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
-
Ask the Editor — Questions on the One Big Beautiful BillAsk the Editor In this week's Ask the Editor Q&A, we answer tax questions from readers on the House-passed “One Big Beautiful Bill.”
-
Stock Market Today: Stocks Bounce as US-China Tensions EscalateStocks were volatile to end the week and the month amid concerns a trade truce between the U.S. and China is splintering.
-
New GOP Car Loan Tax Deduction: Which Vehicles and Buyers QualifyTax Breaks To fulfill Trump's campaign promise, House GOP lawmakers want to offer a tax deduction for car loan interest. How would it work?
-
Big GOP Tax Bill Could Change Your Estate Planning for 2025Tax Law The GOP might extend and increase the higher estate and gift tax exemption and AMT thresholds. What might this mean for your estate plan?
-
Ten Cheapest Places To Live in New YorkProperty Tax If you’re planning a move in New York, here are the counties with the lowest property tax bills in the Empire State.
-
‘My Etsy Shop is Dead’: Vendors Cry for Help Amid Trump’s TariffsTariffs Small businesses are struggling to thrive as they absorb the Trump administration’s new wave of tariffs.
-
Three Things Star Wars Fans Taught Me About TaxTax Tips May the force be with you and your taxes this Star Wars Day 2025.
-
Retirees: Don’t Miss These Valuable State Tax Breaks in 2025Retirement Planning Selecting the right state for retirement can significantly impact your financial well-being.
-
10 Cheapest Places To Live in FloridaProperty Tax Make your Florida vacation spot a place for daily living — these counties have the lowest property tax bills in the state.
-
Missed Tax Day? Nearly One Million Taxpayers Still Can File and Claim Valuable Tax RefundsTax Refunds As many as one million taxpayers could be missing out on a significant tax refund.
