South Carolina State Tax Tables
The South Carolina State Tax Tables for 2021 displayed on this page are provided in support of the 2021 US Tax Calculator and the dedicated 2021 South Carolina State Tax Calculator. We also provide State Tax Tables for each US State with supporting tax calculators and finance calculators tailored for each state.
The South Carolina Department of Revenue is responsible for publishing the latest South Carolina State Tax Tables each year as part of its duty to efficiently and effectively administer the revenue laws in South Carolina. Tax rates and thresholds are typically reviewed and published annually in the year proceeding the new tax year. This page contains references to specific South Carolina tax tables, allowances and thresholds with links to supporting South Carolina tax calculators and South Carolina Salary calculator tools.
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 individuals filing status.
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Note On Multistate Businesses And Nexus
Our primary focus here is on businesses operating solely in South Carolina. However, if you’re doing business in several states, you should be aware that your business may be considered to have nexus with those states, and therefore may be obligated to pay taxes in those states. Also, if your business was formed or is located in another state, but generates income in South Carolina, it may be subject to South Carolina taxes. The rules for taxation of multistate businesses, including what constitutes nexus with a state for the purpose of various taxes, are complicated if you run such a business, you should consult with a tax professional.
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South Carolina Real Property Taxes
In South Carolina, the median property tax rate is $566 per $100,000 of assessed home value.
South Carolina Property Tax Breaks for Retirees
For homeowners 65 and older, the state’s homestead exemption allows the first $50,000 of a property’s fair market value to be exempt from local property taxes. To qualify, you must have been at least 65 years old and a legal resident of South Carolina for one year, as of December 31 of the year preceding the tax year the exemption is claimed.
South Carolina Sales Tax
If you want to make a purchase in South Carolina, youll need to pay state and local sales taxes. The state sales tax rate is 6%, which is about average for U.S states. However, South Carolina counties can elect to have a local option tax on general sales. The table below shows the state and local sales tax rates for all 46 South Carolina counties:
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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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Federal Tax Deductions For Seniors
For those who are 65 and older, in addition to state and local tax deductions there are federal tax deductions and exclusions that may apply to your yearly tax filing. Some of the top deductions are listed below:
What is the Standard Federal Tax Deduction for Seniors Over 65?
The standard tax deduction is a set dollar amount that reduces your overall taxable income. This can vary based on your filing status, age, whether you are blind, or if another taxpayer can claim you as a dependent. In 2021 and 2022, the IRS increased the standard deduction for seniors who are 65 and over. The information for both years can be found below:
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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.
Overview Of South Carolina Taxes
South Carolina has a progressive income tax. The state has some of the lowest property and gas taxes in the nation. South Carolinas total sales tax ranks in the top 20 in the U.S.
| Household Income |
| Number of State Personal ExemptionsDismiss |
* These are the taxes owed for the 2021 – 2022 filing season.
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South Carolina Income Tax Rate And Sc Tax Brackets South Carolina Passes Substantial Tax Updates
Security About eFile. Many working-class residents will likely find themselves in the state’s highest income bracket which is going down , but retirees fair much better thanks to a collection of income tax breaks aimed at seniors. With its sandy beaches and warm weather, South Carolina can be an attractive choice for outsiders looking to relocate.
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.
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How Income Taxes Are Calculated
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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.
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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.
South Carolina Median Household Income
| Year | |
|---|---|
| 2010 | $42,018 |
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 wont 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 Carolinas 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.
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The South Carolina Income Tax
South Carolina collects a state income tax at a maximum marginal tax rate of %, spread across tax brackets. Unlike the Federal Income Tax, South Carolina’s state income tax does not provide couples filing jointly with expanded income tax brackets.
Notably, South Carolina has the highest maximum marginal tax bracket in the United States. You can learn more about how the South Carolina income tax compares to other states’ income taxes by visiting our map of income taxes by state.
Tax brackets in South Carolina are adjusted for inflation each year, which usually results in a small tax increase. Release dates for tax bracket inflation adjustments vary by state, but South carolina generally releases the current year’s brackets after the end of the previous tax year,
There are -911 days left until Tax Day, on April 16th 2020. The IRS will start accepting eFiled tax returns in January 2020 – you can start your online tax return today for free with TurboTax .
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.
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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 State Tax Guide
State tax rates and rules for income, sales, property, fuel, cigarette, and other taxes that impact South Carolina residents.
Retirees: Most Tax-Friendly
The Palmetto State boasts one of the lowest median property tax rates in the country. That’s the driving force behind South Carolina’s low tax burden.
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Tax Policy In South Carolina
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.
| Tax policy in South Carolina |
| Tax rates in 2017 |
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
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 youre seeking further guidance with minimizing your tax burden while maximizing your earnings, its always helpful to talk with a financial advisor.
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Unemployment Insurance Tax Rate Table
The 2022 tax rates for businesses will decrease or remain unchanged from their 2021 levels due to legislative action taken in 2020. For 2022 there will be no solvency surcharge imposed.The tax rates applicable for wages paid between January 1, 2022 and December 31, 2022 are shown in the table below. An Annual Tax Rate Notice detailing individual rates will be mailed to each employer November 12, 2021. Individual rates are based on an employers computed benefit ratio. The tax class assignment in the notice should be used for the full calendar year. Please note that tax rates are applicable to the first $14,000 each employee earns.Although tax rates for each tax class are lower or the same as their 2021 levels, individual businesses may still move between classes based on their unemployment claim activity.All businesses with charges against their accounts are provided a charge statement quarterly to review and have 30 days to protest any charges they do not believe should be on their account.
2022 Unemployment Insurance Tax Rates
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