South Carolina taxes your income at rates between 0% and 7%, depending on how much you earn

South Carolina has a progressive income tax system, meaning the tax rate increases as your income increases. The state does not have a flat tax. Instead, you pay different percentages on different portions of your income, with rates ranging from 0% on the lowest bracket to 7% on the highest. This is separate from federal income tax — you owe both.

The tax brackets change each year because the state adjusts them for inflation. Your filing status (single, married filing jointly, head of household) determines which bracket your income falls into. South Carolina also allows you to claim a standard deduction or itemize deductions, which reduces the income amount that actually gets taxed.

Key Takeaways

  • South Carolina's top income tax rate is 7%, applied only to income above a certain threshold that changes yearly.
  • You pay tax on your federal taxable income, not your gross earnings, because South Carolina uses federal adjusted gross income as its starting point.
  • The state offers a standard deduction that reduces your taxable income; for 2024, the standard deduction is $3,720 for single filers and $7,440 for married couples filing jointly.
  • South Carolina does not tax Social Security benefits, military pensions, or certain retirement income, though other states' rules may differ.
  • You file South Carolina taxes using Form SC 1040, which you submit to the South Carolina Department of Revenue by April 15 each year.

The 2024 tax brackets and rates

For the 2024 tax year, South Carolina's income tax brackets are structured as follows. Single filers pay 0% on the first $3,720 (the standard deduction), then 3% on income from $3,721 to $6,070, then 4% on income from $6,071 to $9,410, and so on, stepping up to 7% on income over $155,000. Married couples filing jointly have higher thresholds at each bracket level, so more of their income falls into lower tax brackets.

These bracket amounts are adjusted annually. The state publishes updated brackets in early January each year on the South Carolina Department of Revenue website. If you earned income in 2023, you would use the 2023 brackets when filing your 2023 return in 2024. The brackets do not change during the year — they apply to the full tax year.

Head of household filers have their own bracket structure, which falls between single and married filing jointly. If you are unsure which filing status applies to you, the IRS and South Carolina Department of Revenue both provide worksheets to help you determine the correct one.

What income counts and what does not

South Carolina taxes wages, salaries, self-employment income, interest, dividends, and capital gains. The state uses your federal taxable income as the starting point, then makes adjustments specific to South Carolina law. This means if you have already calculated your federal taxes, you are partway to your state calculation.

South Carolina does not tax Social Security benefits, even if you receive a large amount. Military pensions and certain retirement income also receive special treatment. If you are over 65, you may be able to exclude a portion of your retirement income from taxation, though the rules depend on the source of that income and your total income level. The Department of Revenue publishes a guide each year on what counts as taxable retirement income.

If you have income from another state, you may owe tax to that state as well as South Carolina. The state offers a credit for taxes paid to other states to prevent double taxation, but you have to claim it on your return.

How to file and when payment is due

You file South Carolina income tax using Form SC 1040, which you can download from the Department of Revenue website or request by mail. The form is due April 15 each year, the same deadline as federal taxes. If you file your federal return electronically, you can also file your state return electronically through an approved tax software provider or a tax professional.

If you owe tax, you pay it when you file. If you expect to owe more than $400 for the year, you may need to make quarterly estimated tax payments throughout the year — this applies mainly to self-employed people and those with income not subject to withholding. The Department of Revenue provides a worksheet to calculate estimated payments.

If you are due a refund, the state typically processes it within 4 to 6 weeks if you filed electronically, or 8 to 12 weeks if you filed by mail. You can check the status of your refund on the Department of Revenue website using your Social Security number and the amount of your refund.

Withholding and estimated taxes

If you are an employee, your employer withholds South Carolina income tax from your paycheck based on the W-4 form you complete. The withholding is an estimate — it is meant to cover your tax liability for the year, but it may be too high or too low depending on your actual income and deductions.

If you are self-employed or have income from sources without withholding (such as rental income or investment income), you are responsible for paying estimated taxes quarterly. Payments are due April 15, June 15, September 15, and January 15. If you do not make these payments and owe a large amount at tax time, you may face penalties and interest.

You can adjust your withholding at any time by submitting a new W-4 to your employer. If you expect a major life change — a second job, marriage, a child — updating your withholding can help you avoid owing a large amount in April or getting too large a refund.

Deductions and credits available in South Carolina

South Carolina allows you to claim either the standard deduction or itemize your deductions, just as you do on your federal return. For 2024, the standard deduction is $3,720 for single filers, $7,440 for married couples filing jointly, and $5,610 for head of household filers. These amounts are adjusted each year.

If you itemize, you use the same itemized deductions you claimed on your federal return — mortgage interest, property taxes, charitable donations, and so on. South Carolina does not allow additional state-specific itemized deductions beyond what the federal government allows.

The state also offers several tax credits that directly reduce the tax you owe. These include a child and dependent care credit, an education credit for contributions to a college savings plan, and a credit for taxes paid to other states. Credits are more valuable than deductions because they reduce your tax dollar-for-dollar rather than reducing your taxable income.

Frequently Asked Questions

Do I have to file a South Carolina return if I live out of state?

No, unless you earned income in South Carolina. If you worked in South Carolina but live in another state, you owe South Carolina tax on that income. You would file a part-year resident return or a nonresident return, depending on how long you lived in the state during the year. The Department of Revenue website has worksheets to determine your filing status.

What happens if I do not file or pay on time?

The state charges penalties and interest on unpaid taxes. A failure-to-file penalty is typically 5% of the unpaid tax per month, up to 25%. A failure-to-pay penalty is 0.5% per month. Interest accrues daily at a rate set by the state each quarter. If you cannot pay by April 15, you can request an extension or a payment plan from the Department of Revenue.

Can I deduct federal income tax from my South Carolina return?

No. South Carolina does not allow you to deduct federal income tax paid. However, if you paid income tax to another state, you can claim a credit for that amount on your South Carolina return, up to your South Carolina tax liability.

Is there a state earned income tax credit?

South Carolina does not have its own earned income tax credit. However, if you are low-income and have children, you may be able to claim the federal earned income tax credit on your federal return, which can result in a refund. The state does not add to or modify this credit.

How do I know if I need to file a return?

You must file if your income exceeds your standard deduction for your filing status. For 2024, that is $3,720 for single filers and $7,440 for married couples filing jointly. Even if you do not owe tax, filing may result in a refund if taxes were withheld from your paychecks or if you are due a credit.