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South Carolina Taxable Income
Tax Rate
Tax Calculation
$0 – $30,000
1.99%
1.99% of taxable income
Over $30,000
5.21%
5.21% of taxable income minus $966
The $966 adjustment in the second bracket prevents income at exactly $30,000 from being taxed at the higher rate. South Carolina’s new tax structure applies to taxable years beginning after 2025.
South Carolina Tax Table Examples
Example: A taxpayer with $20,000 of South Carolina taxable income would calculate state income tax at 1.99%.
$20,000 × 1.99% = $398
Example: A taxpayer with $50,000 of South Carolina taxable income would use the second rate.
$50,000 × 5.21% − $966 = $1,639
These examples illustrate the tax calculation before considering applicable credits, exemptions, or other adjustments.
South Carolina Tax Rate for Income Over $30,000
The 5.21% rate is the top individual income tax rate for South Carolina. It applies to taxable income above $30,000 under the new two-rate system.
The calculation is not simply 5.21% of all income. The $966 subtraction built into the formula accounts for the lower 1.99% rate applied to the first $30,000.
South Carolina Tax Tables vs. Tax Rates
A tax rate is the percentage used to calculate tax. A tax table provides a convenient way to determine the amount of tax owed based on a taxpayer’s taxable income.
South Carolina’s tax tables are particularly useful when completing the SC1040. The South Carolina Department of Revenue provides separate tax tables for each tax year.
South Carolina Taxable Income
South Carolina taxable income is the amount used to calculate state income tax. It is important to distinguish taxable income from total income because deductions and other adjustments can reduce the amount subject to tax.
South Carolina also changed how certain deductions are handled. The new law eliminates the federal standard deduction and federal itemized deduction for South Carolina purposes and establishes a South Carolina income-adjusted deduction.
South Carolina Tax Tables for Seniors
South Carolina’s tax rules can be particularly important for retirees. Social Security benefits generally receive favorable treatment, and qualifying retirement income may be eligible for South Carolina-specific deductions.
Retirees should consider the tax treatment of pensions, IRA withdrawals, 401(k) distributions, and other retirement income when determining South Carolina taxable income.
The tax table itself does not determine whether retirement income is deductible. You must consider those deductions and adjustments before calculating the final tax.
South Carolina Social Security Taxes
South Carolina does not generally tax Social Security benefits. This can make the state attractive to retirees who rely heavily on Social Security income.
However, other sources of retirement income may be taxed differently. Retirees should calculate South Carolina taxable income after applying all applicable adjustments and deductions.
South Carolina Tax Brackets
South Carolina has simplified its individual income tax brackets to two levels:
1.99% on taxable income up to $30,000
5.21% on taxable income above $30,000
The new law also establishes a process for reducing the top marginal rate beginning in 2027 if specified revenue conditions are met.
South Carolina Tax Tables and Federal Tax Brackets
South Carolina tax tables are separate from federal tax brackets. Federal income tax is calculated under federal tax rules, while South Carolina income tax is calculated using South Carolina taxable income and state tax rates.
This distinction is important because a taxpayer’s federal taxable income and South Carolina taxable income may not always be identical.
Taxpayers researching their overall tax liability should review both the federal tax brackets and South Carolina tax tables.
South Carolina Tax Withholding Tables
South Carolina also publishes separate withholding tax tables for employers. These tables determine how much South Carolina income tax should be withheld from employee wages during the year.
The South Carolina withholding tables are separate from the individual income tax tables used to calculate the final tax liability on an SC1040.
South Carolina Tax Refund
A South Carolina tax refund may be available when a taxpayer’s payments and withholding exceed the final state tax liability.
The refund amount depends on the taxpayer’s actual income, withholding, estimated payments, credits, deductions, and other tax information.
Using the correct South Carolina tax tables is important when determining the final tax liability and potential refund.
South Carolina Tax Tables
The South Carolina tax tables are especially important because the state has changed its individual income tax structure. Taxpayers filing a 2026 return should not automatically use the 2025 tax tables.
The new system uses a 1.99% rate on the first $30,000 of taxable income and a 5.21% rate above $30,000, subject to the calculation described in the new law.
South Carolina tax tables are an important part of calculating state income tax. Taxpayers need to pay particular attention to the state’s new two-rate system.
The rates are 1.99% on taxable income up to $30,000 and 5.21% on taxable income over $30,000, with the second bracket calculated by subtracting $966 from the 5.21% calculation.
Taxpayers should use the tax rates and deductions for the specific tax year they are filing, rather than relying on an older South Carolina tax table.
South Carolina tax tables show how much state income tax taxpayers may owe based on their South Carolina taxable income.
