South Carolina State Taxes
Quick Tax Facts
Income Tax: 0% – 6%
State Sales Tax: 6%
Median Property Tax: $1,138
Overview
South Carolina is known for its delicious barbeque and southern charm. Tourists flock to its beautiful beaches (Hilton Head Island and Myrtle Beach) while residents enjoy year-long warm weather and a relaxed pace. Although South Carolina is the birthplace of sweet tea, its taxes can leave a sour taste. Income taxes are very high for lower-income and middle-class families. Sales taxes are pretty steep, too.
South Carolina Income Tax
South Carolina uses a simplified income tax structure that mirrors federal income tax laws. Individual income tax rates range from 0% to 6.0%. There is current legislation that would move the state to a 1.99% flat rate over the next five years, if passed.
| 2025 South Carolina Tax Rates |
|---|
| Taxable Income | Tax Rate |
|---|---|
| $0 – $3,560 | 0% |
| $3,560 – $17,830 | 3% |
| Over $17,830 | 6% |
South Carolina does not tax military retirement pay.
Who Must File?
South Carolina residents generally must file a state income tax return (SC1040) if they are required to file a federal income tax return. Part-year and non-residents should file a South Carolina income tax return if they work in the state or are receiving income from rental property, businesses, or other investments in South Carolina.
Part-year residents may choose one of two options when filing:
- Compute state tax as a South Carolina resident for the entire year and file using SC1040. Use SC1040TC to claim a credit for an income tax paid to another state; or
- Compute state tax using Schedule NR. Only include amounts that are taxable in South Carolina in column b. This includes income, gain, loss, or deductions earned from state sources or while they were residing in the state. File using SC1040 and attach Schedule NR.
Non-residents receiving South Carolina income from wages, rental property, businesses, or other investments in South Carolina, must file using SC1040 and Schedule NR.
South Carolina Sales Tax
South Carolina has a statewide sales tax rate of 6%. Counties may impose an additional 1% sales tax, as well. Individuals who are 85 or older may claim a 1% exemption from state sales and uses tax purchases for their own personal use.
South Carolina Property Taxes
South Carolina property tax rates are some of the lowest in the country. On average, counties collect .53% of a property’s assessed fair market value.
The median property tax bill in South Carolina is around $1,138. Beaufort County has the highest property tax at an average of $1,928. The lowest amount is $435 in Marion County.
| Highest | $1928 |
|---|---|
| Median | $1138 |
| Lowest | $435 |
Yearly Cost Per Resident
South Carolina Tax Holidays
South Carolina hosts an annual Tax Free Weekend on the first Friday in August through the following Sunday. During this time, certain items are exempt from both state and local sales taxes. Generally, exempt items include:
- Clothing and footwear
- School supplies
- Musical instruments (used for school assignments)
- Computers, software, and printers
- Certain bed and bath items
Qualified items purchased online are also tax-free this weekend.
South Carolina Tax Relief
When South Carolina income taxes go unpaid, the balance can grow as penalties and interest continue to accrue. The South Carolina Department of Revenue (SCDOR) may also begin collection efforts when a tax debt remains unresolved. Whether you’re dealing with past-due returns, financial hardship, or unpaid business tax obligations, taking action early may help keep the situation from becoming more complicated.
If paying your South Carolina tax balance in full isn’t realistic, there may be options available to help you address what you owe. Depending on your circumstances and eligibility, you may be able to set up a payment plan, pursue an Offer in Compromise, or explore other available tax relief options. Addressing your account before collections advance may also help you avoid or resolve enforcement measures such as tax liens, wage garnishments, bank levies, and other collection actions.
Understanding how South Carolina handles delinquent taxes and knowing which resolution options may be available can help you decide how to move forward. By taking steps to address your outstanding balance, you can work toward resolving your tax debt and bringing your South Carolina tax account back into good standing.
Common South Carolina State Tax Problems
Back Taxes
If you owe unpaid South Carolina taxes, addressing your balance early may help you avoid additional penalties and collection actions.
Unfiled Tax Returns
Filing past-due South Carolina tax returns is often the first step toward resolving your state tax issues.
Tax Notices
Notices from the SC Department of Revenue shouldn’t be ignored, as they often require prompt action to prevent further collections.
Liens & Levies
Unresolved tax debt may lead to liens against your property or levies on your assets as the state works to collect what is owed.
Garnishment
South Carolina may garnish your wages to collect unpaid taxes, reducing the amount of each paycheck you receive.
Tax Penalties
Unpaid taxes can continue to accrue penalties and interest until your balance is resolved.
How South Carolina Collects Tax Debt
If you don’t file or pay your South Carolina income taxes on time, the state will issue a Notice of Assessment. This will include information about the tax debt you owe, including any penalties and interest fees. If you don’t pay within 12 days of receiving the Notice of Assessment, the state will consider your back taxes an “overdue tax debt” and may add a 20% Collection Assistance Fee to your balance.
If you do not pay in full or fail to set up payment arrangements, the state will move forward with collection actions, such as:
- Wage garnishment
- Tax liens
- Bank levies
- Asset seizure
- Tax refund offset
- License revocation
- Referral to a private collection agency
Notice of Assessment sent to taxpayer
Collection Assistance Fee added
Collection actions begin
South Carolina State Tax Relief Options
South Carolina offers several tax relief options, including:
- Payment Plans – If you can’t pay in full, you may qualify to pay your balance over several months (12 to 48) through a payment plan.
- Offer in Compromise – You may be able to settle your tax debt for less than you owe through an Offer in Compromise if you are facing economic hardship or there is a doubt as to collectibility.
If you’re experiencing financial hardship and can’t pay your South Carolina income tax bill, contact the Department of Revenue as soon as possible to discuss your options.
When to Seek Tax Relief Help
If you’re experiencing any of the following, it may be time to explore your tax relief options:
You’re Receiving Collection Notices
Ignoring South Carolina tax notices can lead to more serious collection actions, so it’s often best to address the issue early.
You Can’t Afford to Pay Your Taxes
If paying your South Carolina state tax bill in full isn’t realistic, there may be payment or resolution options available.
Collection Actions Have Started
If you’re facing wage garnishments, bank levies, or tax liens, professional guidance may help you understand your options.
The sooner you address your tax debt, the more options you may have available to resolve your balance and minimize additional collection actions.
South Carolina Tax Relief FAQs
South Carolina Tax Resources
If you need assistance preparing your South Carolina state taxes, you can speak with a tax professional from Tax Defense Network by calling 855-476-6920.
You can also visit the South Carolina Department of Revenue website for additional resources.
- Find a Form
- Check Your Refund Status
- Make a Payment
- Taxpayer Assistance: 844-898-8542 or email IITax@dor.sc.gov
