Overview
South Carolina levies a graduated income tax with three brackets, ranging from 0% to 6.20% for 2026. The top rate has been declining — it was 6.50% in 2024 and is scheduled to continue decreasing by 0.10% annually until reaching 6.00% in 2027. The same bracket thresholds apply to all filing statuses: 0% on the first $3,460, 3.00% on $3,461-$17,330, and 6.20% above $17,330.
South Carolina conforms to the federal standard deduction ($14,600 single, $29,200 married filing jointly). The state provides a dependent exemption of $4,640 per qualifying dependent but does not offer a personal exemption for the taxpayer or spouse. South Carolina starts from federal taxable income with state-specific modifications.
South Carolina Tax Brackets 2026
| Income Range | Tax Rate | Tax on Bracket |
|---|---|---|
| $0 - $3,460 | 0% | -- |
| $3,461 - $17,330 | 3% | $416 |
| Over $17,331 | 6.2% | -- |
Standard Deductions and Exemptions
| Filing Status | Standard Deduction | Personal Exemption |
|---|---|---|
| Single | $14,600 | N/A |
| Married Filing Jointly | $29,200 | N/A |
| Head of Household | $21,900 | N/A |
| Per Dependent | — | $4,640 |
Understanding South Carolina Taxes
South Carolina is one of the most tax-friendly states for retirees. Social Security benefits are fully exempt from state tax. Taxpayers 65 and older can deduct up to $15,000 of retirement income from state taxable income (including pensions, 401(k)s, IRAs, and annuities). Military retirement pay is 100% exempt, regardless of age. For married couples where both spouses are 65+, the combined retirement income deduction can reach $30,000.
The state sales tax rate is 6.00% with local additions bringing the average combined rate to approximately 7.43%. Groceries are taxed at a reduced rate, and the state provides a sales tax cap of $500 on motor vehicles. This cap means the maximum sales tax on any vehicle purchase is $500, regardless of the purchase price — a significant benefit for car buyers compared to most states.
Property taxes in South Carolina are among the lowest in the nation, with an average effective rate of approximately 0.55%. Owner-occupied residential property is assessed at 4% of fair market value (compared to 6% for other residential and up to 10.5% for commercial), and a homestead exemption of $50,000 of assessed value is available for homeowners 65 and older. The combination of low effective rates and the senior exemption makes South Carolina extremely affordable for retiree homeowners.
South Carolina's cost-of-living index is approximately 93, about 7% below the national average. Charleston, Greenville, and Columbia offer growing job markets. Charleston and the coastal areas are more expensive but benefit from tourism and a military presence. The Upstate (Greenville-Spartanburg) has seen significant manufacturing and tech growth.
Filing Tips for South Carolina
The $500 cap on vehicle sales tax makes buying a car in SC much cheaper than in most states — a $50,000 car saves you over $3,000 compared to a 7% tax
Retirees 65+ should claim the $15,000 retirement income deduction and the $50,000 homestead property tax exemption
SC's declining top rate means slightly more take-home pay each year — check your withholding annually
State Revenue Authority
For the most current tax information, visit the official South Carolina tax authority:
dor.sc.govRelated Calculators
Frequently Asked Questions
For educational purposes only -- not financial or tax advice. Tax rates shown are based on 2026 data and may not reflect recent changes. Consult a tax professional for your specific situation.