South Carolina Salary After Taxes

South Carolina tax rules

How South Carolina taxes your salary in 2026

South Carolina uses a three-tier income tax structure. The first $3,560 of taxable income is exempt, a 3% rate applies from $3,560 to $17,830, and the top rate of 6.2% covers everything above. South Carolina conforms to the federal standard deduction ($16,100 single, $32,200 married), so the 0% band plus the standard deduction means roughly the first $19,660 of gross income is effectively state-tax-free.

South Carolina 2026 income tax brackets

The top rate is declining

South Carolina has been steadily reducing its top rate from a high of 7% down to 6.2% for 2026. Further reductions are planned under recent legislation, with a target of 6.0% or lower within the next few years, subject to revenue triggers. Each reduction puts more money in workers' paychecks statewide.

No local income taxes

South Carolina does not allow any city or county to levy a local income, wage or earnings tax. This keeps payroll simple and means the calculator figure above is your complete state-level income tax picture.

Your South Carolina salary at three income levels

Single filer, federal standard deduction ($16,100), no pre-tax contributions.

Single filer, standard deduction, 2026 rates. No pre-tax contributions or local taxes included.

South Carolina's rate reduction history

The reductions have been gradual — about 0.1 to 0.5 percentage points per year — and are expected to continue. Each cut directly increases take-home pay for every worker above the 3% bracket threshold. On a $65,000 salary, a 0.1% rate reduction saves roughly $48 per year in state tax.

Why retirees choose South Carolina

South Carolina is one of the most popular retirement destinations in the US, and taxes are a major reason. Social Security benefits are completely exempt from state tax. Military retirement pay is fully deductible. Other retirement income — pensions, 401(k) withdrawals, IRA distributions — qualifies for a deduction of up to $10,000 per person.

For a couple with $80,000 in combined retirement income (Social Security plus pension), the effective South Carolina state tax could be as low as $0 to $1,500, depending on the mix. Compare that to the $3,000 to $4,000 a working-age earner at the same income would pay. This dual incentive — low working-age taxes that continue to decline, plus generous retirement exemptions — makes South Carolina attractive at both ends of the career spectrum.

The state's warm climate, relatively low property taxes (averaging about 0.6% of home value), and coastal access in Charleston and Myrtle Beach add non-tax appeal that reinforces the financial advantages.

South Carolina's property tax advantage

South Carolina's effective property tax rate averages about 0.6% of home value, well below the national median of roughly 1.1%. On a $250,000 home, that is roughly $1,500 per year versus a national average of about $2,750. South Carolina also offers a homestead exemption that reduces the assessed value for primary residences, further lowering the property tax bill for homeowners.

Combined with the declining income tax rate and no local income tax, South Carolina's total tax burden is moderate. A worker earning $65,000 with a $250,000 home pays roughly $2,300 in state income tax, $1,500 in property tax, and $2,100 in sales tax (6% state + 1-2% local average) — a total of about $5,900 in state and local taxes. That is below the national average for this income level.

The state's combination of warm climate, beach access, moderate taxes and declining rates continues to drive both working-age and retirement in-migration, particularly from higher-tax states in the Northeast.

South Carolina vs. its neighbors

Georgia charges a flat 5.19%, lower than SC's 6.2% top rate. North Carolina has a flat 4.5%. Virginia tops at 5.75%. On a $65,000 salary, SC's state tax is somewhat higher than these neighbors, but the declining rate and no-local-tax simplicity are competitive factors. As SC continues to cut its rate, the gap with these lower-rate neighbors will narrow further, making South Carolina increasingly attractive for both new residents and employers evaluating state tax environments.