South Carolina tax guide
South Carolina maintains a progressive individual income tax system that is intended to scale with a taxpayer's earnings across three specific brackets. While this structure aims for equity, it results in a higher top marginal rate of 6.20% compared to neighboring flat-tax states. Taxpayers should ensure their W-4 and state withholding forms are accurate to avoid surprises when filing their annual state return.
Key tax highlights
Payroll
- South Carolina utilizes a progressive tax system featuring three distinct income tax brackets.
- The maximum state income tax rate for South Carolina taxpayers is currently 6.20%.
- Employers are required to withhold South Carolina state income tax based on the current withholding tables provided by the South Carolina Department of Revenue.
- State withholding is calculated based on the employee's gross pay minus allowable state deductions and exemptions.
Local taxes
- Unlike many other states, South Carolina does not impose local or municipal income taxes on wages, meaning your tax burden is limited to federal and state levels.
Deductions
- South Carolina allows for specific state-level personal exemptions and deductions that may differ from federal standards, which can impact your taxable income.
- Taxpayers can take advantage of state-specific credits, such as the two-wage earner credit, which is designed to reduce the tax burden for married couples filing jointly.
Salary examples
Pre-computed take-home estimates at common salary levels. For example, a $75,000 salary in South Carolina yields about $57,748 after all deductions (77.0% take-home rate). Use the calculator above with your actual salary to see your specific estimate.
| Salary | Federal | State | FICA | Take-Home | Rate |
|---|---|---|---|---|---|
| $50,000 | $3,820 | $2,344 | $3,825 | $40,011 | 80.0% |
| $75,000 | $7,670 | $3,844 | $5,738 | $57,748 | 77.0% |
| $100,000 | $13,170 | $5,344 | $7,650 | $73,836 | 73.8% |
| $150,000 | $24,734 | $8,344 | $11,475 | $105,447 | 70.3% |
Neighboring states
How South Carolina compares with border states on income tax. At a $75,000 salary, a South Carolina worker pays $3,844 in state tax annually.
| State | Tax type | Top rate |
|---|---|---|
| North Carolina | flat tax | 4.75% |
| Georgia | flat tax | 5.19% |
Tax tips for South Carolina
- Verify your withholding status with your employer to ensure the correct state tax amount is being deducted based on your annual income projection.
- Review the eligibility requirements for the South Carolina two-wage earner credit if you are married and filing a joint return.
- Check for state-specific tax deductions, such as deductions for certain retirement income or tuition payments to South Carolina colleges, which can lower your taxable income.
- Consider using the South Carolina Department of Revenue’s online resources to estimate your state tax liability before the end of the year.
Did you know?
- •South Carolina is one of the few states that provides a specific income tax deduction for residents who are age 65 or older.
- •The state government has been actively working on simplifying its tax brackets over recent years, gradually moving toward a more streamlined progressive system.
Filing guidance
Residents must file their South Carolina individual income tax returns using Form SC1040, typically by the same mid-April deadline as the federal tax return. It is critical to reconcile your state withholding recorded on your W-2 with the tax calculated on your return. If you move into or out of South Carolina during the year, you may be required to file as a part-year resident, prorating your income accordingly. Always utilize the South Carolina Department of Revenue’s MyDORWAY portal for secure online filing and payment options.
Relocation context
Comparing South Carolina with nearby states can reveal whether paycheck differences are driven by state tax, local tax, or payroll deductions.