South Carolina Tax Rates and Exemptions
The South Carolina state sales tax rate is 6%. Local taxes can increase the rate up to 9%. Retailers collect and remit sales tax to the Department of Revenue.
To qualify for the homestead exemption, you must own and occupy your primary residence. You may also qualify if you are the beneficiary of a trust holding title to your residence.
South Carolina income tax rates range from 0% to 7%. The state tax is lower than many states. Property taxes are also relatively low. But the gas tax is higher than in other states.
Taxation on Retirement Benefits
Retirement income is taxable if received while a South Carolina resident. A tax credit can avoid double taxation on out of state wages.
South Carolina retirement benefits include no tax on Social Security and exemptions for other retirement income. The warm weather and recreational activities also appeal to retirees.
Overview of Taxes in South Carolina
With median household income at $50,570, income tax impacts budgets. Residents pay income tax, sales tax, general excise taxes, and more. Business owners collect and remit sales tax. They also pay income tax.