The facts on South Carolina’s Tax Climate

  • 7%
    Individual Income Tax
    Five brackets
  • 5%
    Corporate Income Tax
    Flat Rate
  • 6%
    Sales Tax
  • $970
    Property Tax Collections
    Per Capita

South Carolina‘s Individual Income Tax System
South Carolina’s personal income tax system features five income brackets with a top rate of 7% kicking in at a relatively low income level of $14,000. Among states levying personal income taxes, South Carolina’s top rate of 7.0% is 13th highest nationally. In 2010, state state-level individual income tax collections were $473 per person, which ranked 37th highest nationally.

50-State Table of Individual Income Tax Rates

50-State Table of State Individual Income Tax Collections

50-State Table of State and Local Individual Income Tax Collections Per Capita

Tax Freedom Day Arrives on April 3 in South Carolina

Tax Freedom Day is the day when Americans finally have earned enough money to pay off their total tax bill for the year. In 2012, South Carolina taxpayers work until April 3 (ranked 47th nationally) to pay their total tax bill. The Tax Freedom Days of neighboring states are: Georgia, April 10 (ranked 35th nationally); and North Carolina, April 11 (ranked 31st nationally).

South Carolina’s State and Local Tax Burden Below National Average

South Carolina’s state and local tax burden is currently estimated at 8.1% of income (43rd nationally), below the national average of 9.8%. Compared to the 1977 data, South Carolina had a tax burden of 9.0% (38th nationally), decreasing 0.9% overall. Currently South Carolina taxpayers pay $2,742 per capita in state and local taxes.
South Carolina’s State and Local Tax Burden, 1977-Present
Other States’ State/Local Tax Burdens
Map of U.S. Showing all State’s Burdens and Ranks
Historical Chart Comparing All States’ State/Local Tax Burdens from 1977 to 2009

South Carolina’s 2013 Business Tax Climate Index Ranks 36th

South Carolina ranks 36th in the Tax Foundation’s State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes; individual income taxes; sales taxes; unemployment insurance taxes; and taxes on property, including residential and commercial property. The ranks of neighboring states are as follows: North Carolina (44th), Georgia (34th), and Florida (5th).

50-State Comparison of Business Tax Climates (data only)
2013 State Business Tax Climate Index (full study)