South Carolina state taxes at a glance
| Individual income tax | Graduated (bracket) income tax |
|---|---|
| Rate structure | For 2026, South Carolina moved to two brackets: 1.99% on income under $30,000 and 5.21% (less a $966 adjustment) at $30,000 and above, according to SCDOR. The top rate was 6% for 2025. Verify current-year figures. |
| Tax agency | South Carolina Department of Revenue (SCDOR) |
| Main individual return | Form SC1040 (residents); SC1040NR (nonresidents and part-year residents) |
| Local income taxes | No local income taxes. |
| Sales tax | A 6% state rate plus local option taxes of up to 3%, so combined rates vary by county. |
| Property tax | Billed by counties and school districts. Legal-residence (owner-occupied) property is assessed at a lower ratio than other property, and the state exempts owner-occupied homes from school operating taxes; vehicles are taxed annually as personal property. Check your county. |
| Retirement & Social Security | South Carolina does not tax Social Security benefits. Retirement income deductions are $3,000 before age 65 and $10,000 at 65 or older, and military retirement is fully deductible, per SCDOR. |
Verify current-year figures: state rates, brackets, credits and filing rules change. Treat this page as a starting orientation and confirm details on the South Carolina Department of Revenue (SCDOR) website.
How South Carolina income tax works
South Carolina’s income tax changed for 2026. SCDOR says the state now has two brackets: a 1.99% rate on income under $30,000 and a rate of 5.21% minus $966 on income of $30,000 and above. For 2025 the top rate was 6%, down from 6.2% for 2024, which is why published tables from earlier in 2026 can show different figures. SCDOR also says South Carolina has decoupled from the federal standard deduction rules, so the calculation now begins with federal adjusted gross income rather than federal taxable income.
In place of the federal standard deduction, South Carolina created the South Carolina Income Adjusted Deduction (SCIAD): $15,000 for single or married-filing-separately filers, $22,500 for head of household, and $30,000 for married filing jointly or a surviving spouse, with the amount reduced as federal AGI rises, according to SCDOR’s 2026 information letter. SCDOR planned to launch a SCIAD calculator in MyDORWAY. Because the law is new, read SCDOR’s current instructions before using a calculator built on the old rules, including the one in some software.
SCDOR announced on March 26 that it was extending the filing due date for 2025 individual returns to October 15, 2026, so check the current due date rather than assuming April 15. South Carolina does not tax Social Security benefits, offers retirement income deductions of $3,000 before age 65 and $10,000 at age 65 and older, and fully deducts military retirement. South Carolina also has a state earned income tax credit. For broader context, see which states have no income tax.
Filing your South Carolina return and free options
SCDOR’s MyDORWAY portal cannot be used to file an SC1040, but it can be used for payments and account information, including checking your refund status. SCDOR’s free-online-filing page lists approved software providers that offer free filing for qualifying taxpayers, so use the SCDOR links to avoid fees. You can also file a paper SC1040.
See our free filing hub for the federal return, VITA for in-person help, and extensions explained. Track your refund with state refund status guidance.
For the federal side, see our guides to free federal filing options and the complete guide to filing taxes.
Things South Carolina residents often ask about
- 2026 law change: two brackets and a new SCIAD deduction replace the old structure; older calculators may be wrong.
- Starts from federal AGI: because South Carolina decoupled from the federal deduction sections.
- Due date for 2025 returns moved to Oct. 15, 2026: check SCDOR for the current due date.
- MyDORWAY is not for filing: use approved software or paper for the SC1040.
- Retirement deductions: $3,000 under age 65, $10,000 at 65 and older; military retirement fully deductible.
Official South Carolina links
- South Carolina Department of Revenue
- SCDOR: individual income tax (rates and 2026 changes)
- SCDOR: free online filing options
- SCDOR: MyDORWAY
- Federation of Tax Administrators: State tax agencies
Frequently asked questions
What are South Carolina’s income tax rates for 2026?
Two brackets: 1.99% on income under $30,000 and 5.21% minus $966 on income of $30,000 and above, according to SCDOR. The top rate for 2025 was 6%.
What is the SCIAD?
The South Carolina Income Adjusted Deduction replaces the federal standard deduction for 2026: $15,000 single, $22,500 head of household and $30,000 married filing jointly, reduced as AGI rises.
Does South Carolina tax Social Security?
No. South Carolina does not tax Social Security benefits.
General information only — not tax, legal or financial advice. Tax figures change every year; verify the current numbers at IRS.gov or with a qualified professional. Read the full disclaimer.