South Carolina's top income tax rate is 6.2% in 2026 — down from 7% in 2022, with annual reductions continuing toward 6%. See exactly what you take home.
South Carolina's progressive income tax has three brackets in 2026: 0% on the first ~$3,460, 3% on $3,460–$17,330, and 6.2% above $17,330. Social Security is fully exempt; military retirement pay is fully exempt; 65+ taxpayers exclude up to $15,000 in retirement income. No SC city or county adds a local income tax.
South Carolina locked in a sustained income tax reduction in 2022 that's still playing out. The top rate was 7% for years; legislation passed that year mandated annual 0.1% decreases each year revenues remain strong. By 2026 the rate is 6.2%, and it's scheduled to reach 6.0% by 2028 with potential for further cuts. For a single filer earning $120,000 in South Carolina, the cumulative rate cuts from 2022 through 2026 have saved roughly $960 per year in state income taxes — the kind of real-dollar change that's invisible in the headline rate but meaningful on a paycheck.
South Carolina is a retirement destination for a reason. The state does not tax Social Security benefits. Military retirement pay is fully exempt. Taxpayers age 65 and older can deduct up to $15,000 in retirement income from any source. The combination puts SC in a favorable position for retirees compared to neighboring Georgia (which has a $65,000 retirement income exclusion at 65+) and North Carolina (which taxes all retirement income at the 4.5% flat rate). The Myrtle Beach, Hilton Head, and Greenville corridors have absorbed large influxes of retirees from the Northeast and Midwest partly because of this tax structure.
The Charlotte spillover creates an important tax nuance for York County residents. Workers who live in Fort Mill, Rock Hill, or Lake Wylie and commute into Charlotte pay North Carolina income tax on their Charlotte wages — not South Carolina tax. North Carolina has a flat 4.5% rate. Living across the border in SC doesn't change where your wages are taxed; wages are taxed where earned, not where you live. SC gives a credit for taxes paid to other states, which usually prevents double taxation. But this means many Charlotte-area South Carolinians pay NC's 4.5%, not SC's 6.2%, on their primary income.
South Carolina uses federal taxable income as the starting point for state calculations, which means SC generally conforms to the federal standard deduction. No SC city or county adds a local income tax on wages — Columbia, Charleston, Greenville, and Myrtle Beach workers pay only the SC state rate. Compared to states like Ohio (where Columbus and Cleveland add 2.5% city tax) or Maryland (where county taxes add 2.25–3.2%), this is a genuine simplicity advantage.
| Taxable Income (Single) | Taxable Income (Married) | Rate |
|---|---|---|
| $0 – $3,460 | $0 – $6,920 | 0% |
| $3,461 – $17,330 | $6,921 – $34,660 | 3% |
| Over $17,330 | Over $34,660 | 6.2% |
Brackets apply to taxable income after the standard deduction (~$16,100 single / $32,200 married). Rate was 6.4% in 2024, 6.3% in 2025, 6.2% in 2026. Bracket thresholds adjust annually for inflation.
Estimates only. SC brackets: 0% / 3% / 6.2%. Standard deduction ~$16,100 (single) / ~$32,200 (married). Rate scheduled to decrease annually. Consult a tax professional for advice.
| Gross Pay (this check) | $0.00 |
| Federal Income Tax | −$0.00 |
| South Carolina State Tax | −$0.00 |
| Social Security (6.2%) | −$0.00 |
| Medicare (1.45%) | −$0.00 |
| Net Take-Home Pay | $0.00 |
South Carolina has three income tax brackets in 2026: 0% on the first ~$3,460 of taxable income, 3% on $3,460–$17,330, and 6.2% on income above $17,330. These brackets apply after the standard deduction (~$16,100 single / ~$32,200 married). The 6.2% top rate is down from 7% in 2022 and continues declining 0.1% per year.
South Carolina workers pay: federal income tax (progressive brackets), South Carolina state income tax (0%–6.2% progressive), Social Security (6.2% up to $184,500), and Medicare (1.45%). No South Carolina city or county charges a local income tax on wages. Columbia, Charleston, Greenville, and Myrtle Beach workers pay only the SC state rate.
No. South Carolina fully exempts Social Security benefits from state income tax. SC also exempts military retirement pay entirely and provides a $15,000 retirement income deduction for taxpayers age 65 and older. These exemptions make South Carolina one of the more retiree-friendly income-tax states in the Southeast.
North Carolina has a flat 4.5% state income tax, which is lower than SC's top rate of 6.2%. However, for lower incomes, SC's 0%/3% lower brackets can actually result in less SC tax than the flat 4.5% NC rate. A single filer earning $40,000 in taxable income pays about $1,275 in SC state tax vs. $1,080 in NC state tax. The crossover is around $60,000 in taxable income, above which NC becomes cheaper.
Your Charlotte wages are taxed by North Carolina (where you earn them), not South Carolina. North Carolina has a flat 4.5% rate. South Carolina gives you a credit for taxes paid to NC on those wages, preventing double taxation. You'll pay NC income tax on your Charlotte wages and SC income tax only on any SC-source income you may have. Many Fort Mill and Rock Hill residents are surprised to learn they're effectively paying NC income tax.
On a $70,000 salary paid biweekly ($2,692 per check), SC withholds approximately $138–$145 per paycheck in state income tax. On $100,000 ($3,846 per check), it's approximately $210–$220. On $50,000, approximately $85–$90. The effective SC rate for most middle-income earners runs 4–5% once you account for the 0% and 3% lower brackets.
Yes, under current law. The rate drops 0.1% per year as long as revenues support it — reaching 6.1% in 2027 and 6.0% in 2028. The governor and legislature have expressed interest in continuing reductions beyond 6%, but those future cuts are not yet written into law. The rate reductions are contingent on South Carolina's general fund growth, so an economic downturn could pause them.
Yes — the One Big Beautiful Bill (2026) exempts overtime premiums and tip income from federal income tax only. South Carolina taxes those same wages at the state level (0%/3%/6.2% brackets). Use our Overtime Tax Calculator to see the net federal savings alongside your SC state tax obligation.