The short answer: as of tax year 2026 South Carolina taxes income at 1.99% under $30,000 and 5.21% above it (minus $966), under Act 110 signed March 30, 2026. Social Security is fully exempt, there's no estate or inheritance tax, and the median homeowner pays $1,337 in property tax against $3,211 nationally. Two things to actually do: claim the 4% ratio, and budget for the vehicle tax.
South Carolina overhauled its income tax under Act 110, signed March 30, 2026, replacing the old 0%/3%/6% brackets. First returns under the new structure are due April 2027.
| Under $30,000 taxable | 1.99% |
|---|---|
| $30,000 and above | 5.21%, minus $966 |
| New state deduction (SCIAD) | $15,000 single · $22,500 head of household · $30,000 married filing jointly |
| Future cuts | The top rate falls further whenever the Board of Economic Advisors projects ≥5% revenue growth |
⚠️ Two honest caveats. An ITEP analysis found the deduction swap raises taxes for about 23% of filers, with no savings for the lowest-income households. And several widely cited tax rankings were published before Act 110 and still show 6.0%. Primary source: SC Dept. of Revenue.
| South Carolina median paid | $1,337 |
|---|---|
| United States | $3,211 |
| New Jersey | $9,358 |
| Connecticut | $6,573 |
| New York | $6,542 |
| Massachusetts | $6,080 |
| Effective rate | 0.49% of owner-occupied value |
South Carolina assesses an owner-occupied legal residence at 4% of fair market value; second homes and rentals are assessed at 6%. Homes at the 4% ratio are also exempt from 100% of school operating millage under Act 388 — usually the single biggest line on the bill. Spartanburg County's own worked example on a $100,000 property: $609.60 a year at 4% versus $2,132.40 at 6%.
It is not automatic. You must file a legal residence application with your county assessor before the first penalty date for the tax year you're claiming. One property at a time, and no household member may claim it elsewhere.
| State sales tax | 6% |
|---|---|
| Average combined | 7.49% (local options up to 3%) |
| Unprepared food (groceries) | Exempt from the 6% state rate |
| Corporate income tax | 5.00% flat |
Budget for the vehicle tax. South Carolina charges an annual county property tax on vehicles (6% ratio × local millage), payable before the DMV will renew your registration. Buying a car carries a 5% Infrastructure Maintenance Fee capped at $500, and bringing an already-registered vehicle into the state costs a flat $250. Northeast movers are routinely blindsided by this one.
Project Hometown SC works in three South Carolina communities. Each runs its own program, with its own resident ambassadors and its own application — those community sites are where you apply.
Living history on the Pee Dee — a 7,361-acre state park, Dizzy Gillespie's birthplace, and county median home values around $116,200.
A Fortune 500 headquarters, a university downtown, and a public STEM school Niche ranked #1 in South Carolina.
The Front Porch of the Lowcountry — an hour from Charleston, with a 600-acre wild sanctuary inside the city limits.
Not ready to apply? Read our background pages first: Cheraw · Hartsville · Walterboro
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1.99% on taxable income under $30,000 and 5.21% on income of $30,000 and above, minus $966 — under Act 110, signed March 30, 2026. The new state deduction is $15,000 single, $22,500 head of household, $30,000 married filing jointly.
No. Social Security and railroad retirement are fully exempt from South Carolina income tax.
South Carolina assesses an owner-occupied legal residence (plus up to five contiguous acres) at 4% of fair market value instead of the 6% applied to second homes and rentals — and 4% properties are also exempt from 100% of school operating millage. Spartanburg County's example on a $100,000 property: $609.60 at 4% vs $2,132.40 at 6%. You must apply with your county assessor; it is not automatic.
Yes. Vehicles are assessed at 6% and taxed annually by your county, payable before the DMV will renew your registration. Buying a vehicle carries a 5% Infrastructure Maintenance Fee capped at $500, and bringing an already-registered vehicle into the state costs a flat $250.
Unprepared food is exempt from the 6% state sales tax, though local option taxes may still apply. Prepared food is fully taxable.
Pick a community and a resident ambassador reaches out for a real conversation — no pitch, just questions and answers. Applications are handled on each town's own site.