State Tax Guide
Progressive Income TaxSouth Carolina State Taxes: A Simple Guide
South Carolina has a state income tax, a state sales tax with local add-ons, and local property taxes. This guide walks through the basics in clear, simple language for individuals.
📌 Important
This is a general overview. Tax laws, rates, and credits change over time. Always check official South Carolina guidance or consult a tax professional for current details and your specific situation.
💰South Carolina state income tax
South Carolina taxes personal income under its own brackets and rules, separate from the federal system. The state has a progressive income tax with rates that increase as income rises.
Key points:
- Residents above certain income thresholds must file a South Carolina income tax return.
- Nonresidents may need to file if they earn South Carolina–source income (such as wages from a SC employer or rental income from SC property).
- South Carolina's definition of taxable income, deductions, and credits differs from federal rules—some federal items may not apply at the state level.
- South Carolina has its own standard deduction and tax brackets that are separate from federal tax law.
- Part-year residents must allocate income between SC and other states.
Most residents file a federal Form 1040 plus a South Carolina return (Form SC1040) if they meet the state's filing requirements.
🛍️Sales and use tax
South Carolina has a state sales tax, and local jurisdictions (counties and cities) can add their own sales taxes on top. Total rates vary significantly by location.
How it works:
- Many retail sales of tangible goods are subject to South Carolina sales tax.
- Some items may be taxed differently or exempt, such as certain groceries, prescription medicines, or manufacturing equipment.
- Use tax applies when you buy taxable items from out of state (including online) without paying sales tax and bring them into South Carolina for use.
- Local jurisdictions (counties and cities) may impose additional sales taxes, so the total rate varies by where you shop.
💡 For businesses:
Businesses selling taxable goods or services generally must collect and remit state and local sales and use taxes to the South Carolina Department of Revenue.
🏡Property taxes
Property taxes in South Carolina are imposed by counties, school districts, and municipalities, based on the assessed value and classification of property. These taxes fund local schools, infrastructure, and government services.
How it works:
- Homeowners receive annual property tax bills from their county government.
- Property taxes are based on the assessed value of your property, which is calculated using different assessment ratios for different property types (primary residence, rental property, agricultural land, etc.).
- Multiple entities may levy property taxes on the same property (county, school district, city, special districts).
- Rates and millage vary by county and municipality across South Carolina.
💡 Relief and exemptions:
South Carolina offers different assessment ratios for primary residences (lower than rental property), and possible credits or exemptions for qualifying taxpayers such as seniors, disabled persons, or veterans. Check with your county assessor for details.
Putting South Carolina taxes together
A typical South Carolina resident may deal with:
- ✓Federal income tax (Form 1040)
- ✓South Carolina state income tax (Form SC1040)
- ✓State and local sales and use taxes on purchases
- ✓Local property taxes if they own a home or property
Once you understand basic filing rules, adding South Carolina's layers is much easier. You can also explore what Form 1040 is to understand the federal side.