South Carolina taxes and cost of living (2026)
South Carolina has a graduated income tax from 1.99% to 5.21%. A $100,000 salary is worth about $72,244 a year in national buying power after every tax and South Carolina's prices, #20 of 51 (the state average is $70,397). Retiring on $50,000 a year takes about $1.21M, #18 lowest.
- State income tax
- 2.0%–5.21%
- Sales tax (avg. combined)
- 7.49%
- Property tax (effective)
- 0.45%
- Cost of living
- 93.7
- US = 100
- Social Security taxed?
- No
- Median home
- $300K
Take-home pay in South Carolina
Single filer, 10% of salary to a pre-tax 401(k), standard deduction, renting. All taxes include estimated sales tax.
| Salary | Federal | FICA | State + local | All-in tax rate | Take-home | In US dollars |
|---|---|---|---|---|---|---|
| $50,000 | $3,220 | $3,825 | $668 | 16.5% | $37,287 | $39,773 |
| $75,000 | $6,020 | $5,738 | $2,160 | 19.7% | $53,583 | $57,155 |
| $100,000 | $10,970 | $7,650 | $3,652 | 23.4% | $67,728 | $72,244 |
| $150,000 | $21,134 | $11,475 | $6,068 | 26.9% | $96,324 | $102,746 |
| $250,000 | $43,304 | $15,514 | $10,757 | 29.0% | $155,426 | $165,789 |
What it takes to retire in South Carolina
Married couple, age 60, withdrawals 60% from 401(k)/IRA, 20% Roth, 20% brokerage, no Social Security yet, renting. Spending at US-average prices.
| Spending | At SC prices | Income taxes | All taxes | FI number |
|---|---|---|---|---|
| $40,000 | $37,500 | $0 | $899 | $937.5K |
| $60,000 | $56,249 | $186 | $1,535 | $1.41M |
| $80,000 | $74,999 | $1,664 | $3,462 | $1.92M |
| $120,000 | $112,499 | $5,346 | $8,043 | $2.95M |
South Carolina tax rules at a glance
- Income tax: South Carolina has a graduated income tax from 1.99% to 5.21%. Act 110 of 2026 (H.4216), signed 3/30/2026, retroactive to 1/1/2026. Two brackets: 1.99% up to $30,000 and 5.21% above (DOR formula for $30,000+: 5.21% x TI - $966). Same thresholds for all filing statuses, indexed to chained CPI in later years. 2025 was 0%/3%/6%. SC now starts from federal AGI, not federal taxable income, and has decoupled from the federal standard/itemized, QBI, tips, overtime and senior deductions. These are replaced by the SC Income Adjusted Deduction (SCIAD): $15,000 single/MFS, $22,500 HOH, $30,000 MFJ, phased out linearly over AGI $40,000-$95,000 (single), $60,000-$142,500 (HOH), $80,000-$190,000 (MFJ). The top rate can fall automatically from 2027 if revenue triggers are met (floor 1.99%, then toward 0%). SC EITC is now capped at $200.
- Local income tax: No local income taxes.
- Social Security: Not taxed. Social Security and Railroad Retirement benefits are fully exempt.
- Retirement income: Retirement income deduction of up to $3,000 per person under 65, or $10,000 per person 65+, covering pensions, IRA and 401(k). Taxpayers 65+ also get a $15,000 deduction against any income, reduced by the retirement deduction claimed. Military retirement is fully deductible. These are pre-Act 110 rules. DOR's Act 110 guidance (IL 26-20) lists no change to them, but they have not been confirmed on 2026 forms.
- Capital gains: 44% of net long-term capital gains is deductible, so the effective top rate on LTCG is about 2.92% at 5.21%. Not changed in DOR's Act 110 summary; not yet confirmed on 2026 forms.
- Sales tax: 6.00% state rate, 7.49% average with local taxes; groceries exempt.
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Frequently asked questions
Does South Carolina have a state income tax?
South Carolina has a graduated income tax from 1.99% to 5.21%. Act 110 of 2026 (H.4216), signed 3/30/2026, retroactive to 1/1/2026. Two brackets: 1.99% up to $30,000 and 5.21% above (DOR formula for $30,000+: 5.21% x TI - $966). Same thresholds for all filing statuses, indexed to chained CPI in later years. 2025 was 0%/3%/6%. SC now starts from federal AGI, not federal taxable income, and has decoupled from the federal standard/itemized, QBI, tips, overtime and senior deductions. These are replaced by the SC Income Adjusted Deduction (SCIAD): $15,000 single/MFS, $22,500 HOH, $30,000 MFJ, phased out linearly over AGI $40,000-$95,000 (single), $60,000-$142,500 (HOH), $80,000-$190,000 (MFJ). The top rate can fall automatically from 2027 if revenue triggers are met (floor 1.99%, then toward 0%). SC EITC is now capped at $200.
How much is $100,000 after taxes in South Carolina?
A single filer earning $100,000 who puts $10,000 in a 401(k) takes home about $67,728 after federal, state and local income taxes and payroll taxes, an all-in effective rate of 23.4% including estimated sales tax.
Does South Carolina tax Social Security?
No. South Carolina does not tax Social Security benefits. Social Security and Railroad Retirement benefits are fully exempt.
How much do you need to retire in South Carolina?
To spend $50,000 a year (at US-average prices) with withdrawals mostly from a 401(k)/IRA, you'd need about $1.21M in South Carolina using the 4% rule, after its cost of living and taxes.
Is South Carolina expensive to live in?
South Carolina's cost of living index is 93.7, where the US average is 100 (BEA Regional Price Parities, 2024). The median home is worth about $299,500 and median rent is $1,272 a month.
How this is calculated
- Income taxes use 2026 federal and state brackets, standard deductions and personal exemptions or credits. No itemized deductions or other credits. Local income taxes use a typical statewide rate (for example, Maryland's county taxes or New York City's); many places have none.
- Payroll taxes include Social Security (6.2% up to the wage base), Medicare, and employee-paid state programs such as California SDI or Washington's paid leave premium. A married household salary is treated as two equal earners for payroll-tax caps.
- Cost of living uses the Bureau of Economic Analysis's Regional Price Parities (2024), where the US average is 100. Spending you enter at national prices is scaled by each state's index.
- Sales tax is estimated as the average combined state and local rate on about a third of spending (more where groceries are taxed). It is shown for context but not added to costs, because the price parities already include it. Property tax applies the state's effective rate to its median home value (Census ACS 2024) if you own.
- Retirement solves for the withdrawal that covers your spending plus the taxes it triggers, using each state's treatment of Social Security, retirement-account withdrawals and capital gains, then multiplies by 25 (a 4% withdrawal rate).
- Years to FI starts from zero, adds what you save each year in that state, and grows it at a 5% real return until it reaches that state's FI number.
Estimates for comparison, not tax advice. Your actual taxes depend on deductions, credits, where in the state you live and more. Sources: BEA Regional Price Parities, Census ACS, state sales tax rates, IRS, state revenue departments (per state).