South Carolina State Taxes: What You'll Owe in the 2026 Tax Season

South Carolina has a graduated state income tax, meaning people pay different amounts — ranging from zero to 6 percent — depending on their income level. The state has several benefits for older residents, including no estate tax or inheritance tax, and no state tax on Social Security.

• Income tax: 6 percent for people who have an income of more than $17,830 per year, minus $642.
• Property tax: An average of 0.47 percent of a home’s assessed value, though property taxes are levied locally and vary by county, according to the Tax Foundation.
• Sales tax: 7.49 percent average (combined state and local). The state levies a 6 percent sales tax, and local governments add an average 1.49 percent on top of that. The local rate goes as high as 3 percent, according to the Tax Foundation.

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South Carolina has an individual income tax, with a top rate of 6 percent. Residents who have taxable income of $3,560 or less pay no income tax, while those with income between $3,560 and $17,830 pay 3 percent income tax, minus $107. Anyone who is paid more than $17,830 per year pays 6 percent income tax, minus $642. Somebody with $100,000 in income would pay $6,000 — the 6 percent — minus $642, for a total of $5,358.

Retirement income is generally taxed as regular income in South Carolina, but there are deductions for which some people qualify. For example, if you are totally and permanently disabled, or if you’re a volunteer firefighter or emergency worker, you can claim certain deductions to reduce your tax bill.

Net capital gains are considered taxable income in South Carolina, but the state allows residents to deduct 44 percent of their net long-term capital gains. After that deduction, whatever remains is taxed at the rate appropriate for their income bracket, which is 6 percent on income of $17,830 or more.

The state does not tax Social Security, but you may pay federal taxes on a portion of those benefits, depending on your provisional income. In most cases, provisional income is equal to the combined total of half your Social Security benefits, your adjusted gross income (not including any Social Security benefits) and any tax-exempt interest.

In 2023, the average property tax rate in South Carolina was 0.47 percent of a home’s assessed value, according to the Tax Foundation.

Property taxes vary widely by county. In 2023, rates ranged from a low of 0.34 percent of a home’s assessed value in Horry County to a high of 0.88 percent in Allendale County. The lowest median property tax paid was $397, in Marion County, while the highest was $2,022, in Beaufort County, according to 2023 data from the Tax Foundation.

Sales tax: The statewide sales tax rate is 6 percent, but the average when including state and local sales taxes is 7.49 percent. Typically, all retail sales are subject to state sales tax. Counties may impose an additional 1 percent tax. Other municipalities may impose their own local sales taxes.

Certain items are exempt from sales tax, including prescription medication and textbooks for schools and colleges. In addition, groceries (unprepared food) are exempt from the state sales and use tax, although they may be subject to certain local sales taxes. Clothing, computers and school supplies are also tax-free during the annual Sales Tax Holiday (the first Friday, Saturday and Sunday in August).

Gas and diesel: South Carolina had a $0.2875 per gallon tax on gasoline and diesel as of July 2025, according to the Tax Foundation.

Vehicle tax: Owners of most regular passenger vehicles in South Carolina typically pay $305 per car or truck when titling and registering. That includes a one-time $250 infrastructure and maintenance fee, a $15 title fee and a $40 registration and license plate fee — the last of which needs to be paid every subsequent two years. Vehicles with a higher gross vehicle weight may have a higher fee upon entering the state. In addition, you will need to pay property tax to your county of residence.

Alcohol: The beer excise tax is $0.006 per ounce, while wine is taxed at $0.90 per gallon or $0.2535 per liter. Spirits are taxed at $0.71825 per liter.

Lottery: Lottery winnings in excess of $500 are taxed as income at the same rate residents already pay — in most cases, 6 percent.

South Carolina has no inheritance or estate tax.

Retirement income tax deduction: An individual taxpayer receiving income from a qualifying retirement account may deduct up to $3,000 of qualifying retirement income annually until reaching age 65, when they can deduct up to $10,000 each year.

Age 65 and older income tax deduction: Beginning in the tax year a resident taxpayer turns 65, they may claim a deduction of $15,000 against any South Carolina income. If you claim the aforementioned retirement deduction or a military retirement deduction (see below: Are military benefits taxed?), you must subtract those amounts from this deduction, unless you are claiming those deductions as a surviving spouse.

Retirement income exemptions: Social Security benefits, railroad retirement income and retirement income paid by the U.S. government for service in the reserves or National Guard are exempt from individual income tax.

Homestead exemption: If you’re 65 or older and have resided in South Carolina for a full calendar year, you can get a property tax exemption on the first $50,000 in fair market value of your legal residence. This exemption also applies if you are totally and permanently disabled or legally blind.

All military retirement pay is exempt from South Carolina individual income tax, no matter the recipient’s age. A surviving spouse receiving military retirement income for their deceased spouse can also claim this deduction.

Your 2025 tax returns are due on April 15, 2026.

Valerie Bauman is a journalist and author with two decades of experience working for media outlets, including Newsweek, Bloomberg and The Associated Press. Throughout her career, she’s covered politics and the law, including pharmaceutical litigation, mass torts and election law.