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Official Tax Guide

South Carolina Taxes 2025: Income, Sales, and Property Tax Guide

Complete guide to South Carolina state taxes. Income tax (0% - 6.4%), sales tax, and what you need to know before moving.

Updated January 15, 2026
5 min read

State Tax Guide 2025: South Carolina

Moving to South Carolina offers appealing benefits, including a warm climate and a relatively tax-friendly environment for many residents. Understanding the state's tax structure is crucial for financial planning. This guide provides an overview of South Carolina's major taxes as of 2025.

1. Income Tax

South Carolina utilizes a progressive individual income tax system. This means tax rates increase as income rises, structured across multiple brackets.

  • Tax Structure: Progressive (marginal tax rates).
  • Rate Range: 0% to 6.4%.
  • Brackets: While specific income thresholds are adjusted annually for inflation, the system features several brackets. Taxpayers can expect to pay 0% on the first portion of taxable income, with rates incrementally increasing to the maximum of 6.4% for the highest earners.
  • Federal Deduction: South Carolina allows taxpayers to deduct their federal income taxes paid from their state taxable income, which helps lower the overall state tax burden.

2. Sales Tax

Sales tax in South Carolina is a combination of the state rate and local county taxes.

  • State Rate: The statewide base sales tax rate is 6%.
  • Local Taxes: Counties and specific municipalities may impose additional local sales taxes. This means the total sales tax rate you pay at the register can vary depending on your specific location within the state, typically ranging from 6% to 8% or higher in some tourist areas.
  • ** groceries:** South Carolina offers a tax break on unprepared food items, which are subject to a reduced state sales tax rate of 3%, though local taxes may still apply.

3. Property Tax

Property taxes in South Carolina are administered at the county level and are a primary source of funding for local services like schools and public safety.

  • Assessment: Taxes are based on the assessed value of real estate. The state uses a legal assessment ratio, which is a percentage of the property's fair market value. For residential real estate, this ratio is typically 4% (6% for some other property types).
  • Effective Rate: While the assessment ratio is low, the millage rate (tax per $1,000 of assessed value) set by local governments determines the final bill. Overall, South Carolina's effective property tax rate is generally below the national average, making it attractive for homeowners.
  • Exemptions: Significant exemptions are available, most notably for owner-occupied primary residences (the "4% legal residence" classification). Other exemptions exist for seniors, disabled persons, and veterans.

4. Other Taxes

Beyond income, sales, and property, South Carolina levies several other taxes.

  • Gas Tax: The state gas tax is a fixed rate per gallon, which is periodically adjusted. As of 2025, expect the rate to be approximately 26 to 28 cents per gallon, plus any federal tax.
  • Sin Taxes: South Carolina imposes excise taxes on specific goods:
    • Alcohol: Taxes vary by type (beer, wine, spirits) and are included in the retail price.
    • Tobacco: A state excise tax is applied to cigarettes and other tobacco products, which is above the national average.
  • Inheritance/Estate Tax: South Carolina does not have an inheritance or estate tax. This is a significant advantage for those looking to pass assets to heirs.

5. Retiree Taxes

South Carolina is considered a retiree-friendly state regarding taxation.

  • Social Security: Social Security retirement benefits are exempt from South Carolina state income tax.
  • Pensions and Retirement Accounts: A substantial deduction is available for retirement income, including pensions and withdrawals from 401(k)s and IRAs. For 2025, taxpayers under age 65 can deduct up to $3,000 of retirement income; those 65 and older can deduct up to $10,000.
  • Property Tax Relief: Seniors may qualify for property tax relief or freezes on their primary residence, depending on county regulations and income levels.

6. Comparison to Neighbors

How does South Carolina stack up against its neighboring states?

  • North Carolina: North Carolina has a flat income tax rate (currently around 4.5% to 4.75% in 2025), which is lower than SC's top rate. However, South Carolina offers a higher deduction for retirement income and no estate tax, whereas NC has a state estate tax.
  • Georgia: Georgia also has a progressive income tax system, but its top rate is generally lower than South Carolina's. Both states are relatively similar in their tax-friendliness to retirees.
  • Tennessee: Tennessee has no state income tax on wages or retirement income, making it very attractive for high earners and retirees. However, Tennessee's sales tax rates are among the highest in the nation (often exceeding 9% with local taxes), whereas South Carolina's are more moderate.

Disclaimer: Tax laws change frequently. This guide is for informational purposes only and is not a substitute for professional advice. Consult a CPA or tax professional for personalized guidance.