Income Tax Rates In South Carolina

Getting Your South Carolina Tax Refund

If your state tax witholdings are greater then the amount of income tax you owe the state of South Carolina, you will receive an income tax refund check from the government to make up the difference.

It should take one to three weeks for your refund check to be processed after your income tax return is recieved. E-filing your return and filing early can help ensure your refund check gets sent as quickly as possible.

Once you’ve filed your tax return, all you have to do is wait for your refund to arrive. If you want to check the status of your South Carolina tax refund, you can visit the South Carolina Income Tax Refund page.

New South Carolina Income Tax Credits

Signed into law on June 22nd by Governor McMaster, S.B. 901 incentivizes employers who hire U.S. military veterans or formerly incarcerated individuals into a registered apprenticeship program that has been validated by the United State Department of Labor. This new state income tax credit is available for hires between 2022 and 2027 in the amount of $3,000 in year 1, $2,500 in year 2 and $1,000 in year 3 amounting to a potential total of $6,500 per individual. This credit may be applied against income taxes, insurance premium taxes, bank tax, corporate license tax and savings and loan association tax.

The bill also reenacted the Solar Tax Credit as it existed on December 31, 2021. Qualifying taxpayers who install solar energy equipment may be eligible for a credit equal to 25% of the cost of the project. Flow-through entities can also claim these credits and pass them down to the owners.

Total Estimated 2021 Tax Burden

Our income tax calculator calculates your federal, state and local taxes based on several key inputs: your household income, location, filing status and number of personal exemptions. Also, we separately calculate the federal income taxes you will owe in the 2020 – 2021 filing season based on the Trump Tax Plan.

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Historical South Carolina Tax Policy Information

This article does not contain the most recently published data on this subject. If you would like to help our coverage grow, consider donating to Ballotpedia.

The historical South Carolina tax policy information below is presented as it was written on Ballotpedia in 2015. For more current information regarding tax policy, click here.

South Carolina generates the bulk of its tax revenue by levying a personal income tax and a sales tax. The state derives its constitutional authority to tax from Article X of the state constitution.

Tax policy can vary from state to state. States levy taxes to help fund the variety of services provided by state governments. Tax collections comprise approximately 40 percent of the states’ total revenues. The rest comes from non-tax sources, such as intergovernmental aid , lottery revenues and fees. The primary types of taxes levied by state governments include personal income tax, general sales tax, excise taxes and corporate income tax.

HIGHLIGHTS

South Carolina Property Tax

By law, the local option sales taxes in South Carolina are enacted in order to reduce county property taxes. That, in part, explains why property taxes in the Palmetto State are so low. The states average effective property tax rate are the sixth-lowest in the country at just 0.55%. South Carolinians pay an average of $980 a year in property taxes.

Whether youre looking to buy your dream vacation home in Myrtle Beach or refinance your current home in Charleston, take a look at our our South Carolina mortgage guide to learn all the details about mortgages in the state.

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What You Need To Know About South Carolina Taxes And Retirement

There are so many reasons that make the Palmetto State retiree-friendly. South Carolina retirement taxes are just one desirable perk! Read on to discover more reasons people are retiring in South Carolina.

Afterward, when you are ready to begin your home search, contact us at Pam Harrington Exclusives for a customized search.

Other Tax Breaks For Seniors

South Carolina taxpayers ages 65 and older do not need to file a state income tax return. In addition, Social Security benefits are not taxed by the state of South Carolina. Overall, Kiplinger rates South Carolina as a tax-friendly state for retirees. For more information on tax breaks that senior residents may be eligible for, visit the South Carolina Department of Revenue website.

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Many working-class residents will likely find themselves in the state’s highest income bracket , but retirees fair much better thanks to a collection of income tax breaks aimed at seniors.

Unfortunately, sales taxes are on the high end in South Carolina, with an average combined state and local rate of 7.44%.

Social Security In The Us

Social Security, which is administered by the Social Security Administration, is the commonly used term for the federal Old-Age, Survivors, and Disability Insurance program.

Along with medicare, contributions to these are automatically withheld and deducted from your paychecks by your employer just like with both federal and state income taxes.

For employees, the contribution rate for social security is 6.2% while the contribution rate for medicare is 1.45%. Employers also contribute in equal amounts.

Social security contributions have a maximum cap on the applicable income which is called the wage base limit. For 2022, the wage base limit for social security contributions is $147,000.

Medicare contributions do not have any maximum cap on applicable income. Additionally, high income earners above a certain threshold, which varies depending on filing status, must contribute an extra 0.9% to medicare.

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Manufacturing Property Tax Reduction

On June 17th, Governor McMaster signed into law S.B. 1087, which provides property tax relief to manufacturers who do not currently benefit from a fee-in-lieu-of-tax agreement. Beginning immediately, a South Carolina manufacturers effective property tax assessment ratio is reduced from 9% to 6% . Manufacturers who are not in a FILOT agreement will continue to benefit from the partial manufacturers exemption, so this change is very beneficial to established manufacturers. The South Carolina General Assembly has appropriated $170M per year to reimburse political subdivisions, including school districts, that will be affected by the property tax reduction.

Energy Efficient Manufactured Home Tax Credit

Taxpayers who purchase a manufactured home that meets or exceeds the energy efficiency requirements of the federal Energy Star program may qualify for a state tax credit worth up to $750. To be eligible for the credit, you must have received written certification from the South Carolina Energy Office.

This credit is nonrefundable and doesnât carry forward.

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South Carolina Median Household Income

Taxpayers in the state of South Carolina fall into one of six income tax brackets. These brackets are subject to increasing tax rates with rising income levels. The state updates these brackets each year to account for inflation.

Earners making up to $3,110 in taxable income won’t need to pay any state income tax, as the bottom tax rate in South Carolina is 0%. Taxable income of $15,560 or more is subject to South Carolina’s top tax rate of 7%. All filers are subject to the same income tax brackets regardless of filing status.

Property taxes in South Carolina remain low. Mortgage rates also fall below the national average, which can make the Palmetto State a great option to buy a home. If you are looking to refinance or purchase a home, visit our South Carolina mortgage guide to understand the details about mortgages in the state.

South Carolina Retirement Taxes

Planning your retirement escape? If warm weather, sandy beaches and low taxes are among your priorities, South Carolina may be a good choice. The Palmetto State has some of the countrys most beautiful shoreline, and it’s retirement tax-friendly to boot.

What makes South Carolina a good choice for budget-conscious seniors? Well, for starters, its cost of living is a bit lower than the national average. On top of that, it provides a full income tax exemption for all Social Security retirement benefits and multiple other deductions for retirement income and total income.

A financial advisor in South Carolina can help you plan for retirement and other financial goals. Financial advisors can also help with investing and financial plans, including taxes, homeownership, insurance and estate planning, to make sure you are preparing for the future.

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Do I Have To Pay Income Tax In South Carolina

In South Carolina, the filing requirements depend on your age, filing status, and residency status.

• Resident taxpayers under 65: You must file if you submitted a federal tax return or had South Carolina income tax withheld from any wages.
• Resident taxpayers 65 or older: In this case, it depends on your filing status.
• You must file if your gross income is greater than or equal to the federal filing requirement amount plus $30,000 or you had South Carolina income tax withheld from any wages.
• All other filing status: You must file: if your gross income was greater than the federal filing requirement amount for your status plus $15,000 or, if you had any South Carolina income tax withheld from your wages.

Resident Status And Income Tax In The Us

The United States is unique in that it levies tax on its citizens and residents on their worldwide income regardless of where they live or stay in the world. Note that many tax treaties do exist between the United States and other countries which help to reduce the tax burden by eliminating double taxation .

Non-resident foreign nationals are generally taxed only on their US-sourced income and income that is related with a US trade or US business.

Foreign nationals can be considered residents under a wide variety of scenarios along with an equally wide variety of exceptions. One basic scenario is being a permanent resident in the way of possessing a green card. Another relatively basic scenario is via the “substantial presence test” which, for the most part, states that individuals that stay for at least 31 days in the current year plus a combined total of 183 equivalent days during the current year and prior two years may also be considered residents. Determining residence can get extremely complex really quickly, so for more details, please consult with a tax professional.

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South Carolina Capital Gains Tax

Capital gains are taxed at two different levels in South Carolina. First, short-term capital gains are considered normal taxable income and taxed at the rates listed above. For long-term gains, 44% of the net capital gain is exempt. The net capital gain is the net long-term gain minus any short-term loss for the taxable year.

South Carolina Income Tax Rate 2022

South Carolina state income tax rate table for the 2022 – 2023 filing season has six income tax brackets with SCtax rates of 0%, 3%, 4%, 5%, 6% and 7% for Single, Married Filing Jointly, Married Filing Separately, and Head of Household statuses. The South Carolina tax rate is unchanged from last year, however, the income tax brackets increased due to the annual inflation adjustment.

South Carolina income tax rate and tax brackets shown in the table below are based on income earned between January 1, 2022 through December 31, 2022. Outlook for the 2023 South Carolina income tax rate is to remain unchanged with income tax brackets increasing due to the annual inflation adjustment.

Please reference the South Carolina tax forms and instructions booklet published by the South Carolina Department of Revenue to determine if you owe state income tax or are due a state income tax refund. South Carolina income tax forms are generally published at the end of each calendar year, which will include any last minute 2022 – 2023 legislative changes to the SC tax rate or tax brackets. The South Carolina income tax rate tables and tax brackets shown on this web page are for illustration purposes only.

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South Carolina Tax Brackets 2022

Looking at the tax rate and tax brackets shown in the tables above for South Carolina, we can see that South Carolina collects individual income taxes similarly for Single versus filing statuses, for example. We can also see the progressive nature of South Carolina state income tax rates from the lowest SC tax rate bracket of 0% to the highest SC tax rate bracket of 7%.

For single taxpayers living and working in the state of South Carolina:

• Tax rate of 0% on the first $3,199 of taxable income.
• Tax rate of 3% on taxable income between $3,200 and $6,409.
• Tax rate of 4% on taxable income between $6,410 and $9,619.
• Tax rate of 5% on taxable income between $9,620 and $12,819.
• Tax rate of 6% on taxable income between $12,820 and $16,039.
• Tax rate of 7% on taxable income over $16,039.

For married taxpayers living and working in the state of South Carolina:

• Tax rate of 0% on the first $3,199 of taxable income.
• Tax rate of 3% on taxable income between $3,200 and $6,409.
• Tax rate of 4% on taxable income between $6,410 and $9,619.
• Tax rate of 5% on taxable income between $9,620 and $12,819.
• Tax rate of 6% on taxable income between $12,820 and $16,039.
• Tax rate of 7% on taxable income over $16,039.

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How Your South Carolina Paycheck Works

The reason your paychecks never quite add up to your quoted salary or hourly rate is that your employer withholds some money to pay for taxes. No matter which state you work in, you will need to pay FICA taxes and federal income taxes.

FICA taxes include Social Security and Medicare taxes. Each pay period, 6.2% of your income goes toward Social Security taxes and 1.45% toward Medicare. Your employer matches those amounts so that the total contributions to FICA taxes are double what you pay. If you have income in excess of $200,000 you will also need to pay a Medicare surtax of 0.9%. Your employer does not match this surtax.

While employers usually cover half of workers FICA taxes, you might find yourself responsible for paying the entire sum if you are self-employed or a contract worker. Luckily, if you do have to pay the full FICA taxes, you may be eligible to receive the employer portion in return via a tax deduction. If you’re seeking further guidance with minimizing your tax burden while maximizing your earnings, its always helpful to talk with a financial advisor.

Us Federal Income Tax Brackets And Other Information

The personal income tax system in the United States is a progressive tax system. This means that your income is split into multiple brackets where lower brackets are taxed at lower rates and higher brackets are taxed at higher rates. Federal tax rates range from 10% to 37% with each bracket being shifted slightly depending an individual’s filing status.

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South Carolina Gas Tax

The state collects a gas excise tax of just 26 cents. This rate is middle-of-the-pack on a national scale, but be advised that its on its way up. The state will raise the tax two cents every year until it reaches 28 cents in July 2022. That higher rate will put South Carolinas gas slightly above the national average.

• Before being known as the Palmetto State, South Carolinas nickname was the Iodine State. The current nickname refers to the state tree, while the former refers to the large amount of iodine found in the states vegetation.
• Fort Sumter, in Charleston Harbor, is the site of the first shots fired during the American Civil War. They began the Battle of Fort Sumter on April 12, 1861.

The State Of South Carolina

South Carolina is the southern part of the original land grant created by King Charles I of England in 1629 and was named in his honor along with North Carolina. South Carolina was settled by the English in 1670 and was based on a plantation culture with a wealthy society that depended on manual labor. Eventually, the two carolina colonies split up into north and south sections in 1729. South Carolina went on to become one of the original 13 colonies. One interesting historical aspect is that the Civil War began after Fort Sumter was attacked in the harbor of Charleston.

There are still some features of the South of the pre-Civil War days present in the state. Some come in the form of eloquent buildings that were built before the war that are still standing in Charleston, Beaufort, and other cities while some come in the form of large plantations in parts of South Carolina that were once the center of the economy. However, South Carolina has transformed into a growing research center and banking state. The state also has mountains, seashores and many other historic sites that make it an ideal destination.

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