Most, but not all states collect personal income tax, which considers an individual's salary or any other forms of income. Some states require higher earners (those in the higher "tax brackets") to pay a higher percentage of their income, while others have a so-called "flat tax" that applies to all taxpayers. Those that don't collect income tax often make up for it in other ways, including sales and business taxes. The revenue raised from personal income tax is used to fund education and other state initiatives. South Carolina employs a progressive tax rate.
Overview of Personal Income Tax in South Carolina
South Carolina's progressive tax rate means lower earners are taxed at a much lower rate than high earners. For instance, taxable income between $2,910 and $5,820 is taxed at 3 percent, while income above $14,550 is taxed at 7 percent. Individual personal income tax rates never exceed 7 percent in South Carolina. The limits are doubled for married couples filing joint returns. The tax rate for corporations in South Carolina is 5 percent.
The following table includes a breakdown of South Carolina's personal income tax rates and other relevant information. See FindLaw's Tax Law section for more articles.
| Code Section | 12-6-510, et seq. |
| Who is Required to File | Individuals, estates, and trusts; Partnerships are not subject to tax; Part-year and nonresidents are subject to special tax |
| Rate | First $2,910, 2.5%; Next $2,910, 3%; Next $2,910, 4%; Next $2,910, 5%; Next $2,910, 6%; Over $14,550, 7% |
| Federal Income Tax Deductible | No |
| Federal Income Used as Basis | Yes |
Note: State laws are constantly changing, usually through legislation, ballot initiatives, or appellate court decisions. Make sure you contact a South Carolina tax attorney or conduct your own legal research to verify the state law(s) you are researching.
Filing Your Income Tax Returns in South Carolina
Anyone earning taxable income in South Carolina must file a tax return, even if they are exempt from paying federal income taxes. State tax returns must be filed by April 15 (or whenever the federal tax deadline is), but you may file for an extension to October 15. You can file your taxes by printing out the necessary forms and filling them out according to the instructions provided, or you can file electronically free of charge.
Research the Law
South Carolina Personal Income Tax Laws: Related Resources
Need Tax Help? Contact a South Carolina Tax Law Attorney
Whether it is tax season and you are filing your personal income tax returns or it is midyear and you are a small business wanting to maximum your business expenses, you don't need to figure out the tax code on your own. South Carolina's progressive tax can get complicated. Let an experienced South Carolina tax lawyer help you sort it all out.
