South Carolina State Income Tax in 2025: A Guide

South Carolina’s graduated state income tax system features tax rates ranging from 0% to 6.2%. The taxes you owe depend on your taxable income, filing status, and applicable deductions or credits. In certain situations, South Carolina residents may not owe any state income tax. 

You may qualify for tax deductions and credits that can lower your overall tax liability, a benefit that applies to South Carolina residents, part-year residents, and nonresidents alike.  

Understanding the rules and nuances of the South Carolina tax system can help you maximize your refund or reduce your tax liability for the 2024 tax year (the taxes due in 2025). 

*Note that you are still responsible for federal taxes if you meet the IRS income filing threshold. This article addresses state-specific taxes only.   

South Carolina state income tax rates

South Carolina’s graduated income tax brackets mean that taxpayers in the Palmetto State pay different rates depending on their income. The SC state income tax ranges from 0% to 6.2%. Your tax bill will vary based on factors like your source of income, whether you claim any deductions or credits, and residency. 

The South Carolina Department of Revenue publishes a detailed tax table and rate schedule to help you calculate your tax obligation based on your income and filing status. Sounds complicated? Don’t worry. TurboTax can do the math for you. Best of all, expert help is always just a few clicks away. 

Regardless of the amount you owe, your state income taxes are due on April 15, 2025—the same deadline as federal taxes.

Who has to file South Carolina state income tax?

South Carolina residents who file a federal income tax return are typically required to file a state return as well. Nonresidents and part-time residents must file if they earn income from South Carolina sources, like wages, rental properties, businesses, or investments. 

Understanding your tax obligations can help you avoid costly fines and penalties. If you have questions about your SC state income tax liability, consult a TurboTax professional to ensure the accuracy of your tax return.

How South Carolina residency impacts tax filing

South Carolina defines residency for tax purposes based on: 

• Where you live 
• Financial and social ties 
• Intent to return if you’re away 

Residency status determines how South Carolina taxes your income and the forms you need to file. The following table outlines South Carolina’s residency statuses, definitions, and how the state taxes each one. 

Residency status	Definition	How South Carolina taxes income
Resident	You live in South Carolina all year, or it’s your permanent home and the center of your financial, social, and family life.	South Carolina taxes all income earned, regardless of source.
Part-year resident	You live in South Carolina for part of the year or moved into or out of the state during the tax year.	South Carolina taxes income earned while living there and sourced from within the state.
Nonresident	Your permanent home is outside South Carolina all year. The state is not your financial or social center.	South Carolina only taxes income earned from SC sources, like wages, rental properties, or businesses.

Source: South Carolina Department of Revenue

Other income tax considerations in South Carolina

South Carolina approaches the taxation of some income sources differently than others. Consider the following types of income, which are subject to different rules:

• Retirement and pension income tax: South Carolina taxes pension income, but those over 65 can deduct up to $15,000 of taxable income. That includes up to $3,000 of qualifying retirement income annually until reaching age 65, and up to $10,000 after reaching age 65.
• Investment income tax: Capital gains taxed at the same rate as personal income. A deduction of up to 44% of the net capital gain is available for long-term capital gains. 
• Social Security income tax: Social Security benefits and railroad retirement taxed for federal purposes are exempt from individual income tax in South Carolina. 
• Military income tax: All military retirement income is tax-deductible. Entering the armed forces as an SC resident doesn’t remove your residency status, even if you’re absent on military orders. That makes you subject to the same residency requirements as any other resident, including taxation. 
  • Note that nonresidents stationed in the state aren’t subject to South Carolina Income tax. If you have other earned income subject to South Carolina tax, file the SC1040 with the Schedule NR. Your spouse may also be exempt on income from services performed in South Carolina under the Federal Military Spouses Residency Relief Act.
    

Common South Carolina state tax deductions and credits

Tax credit	Description	Amount
Volunteer Deduction	Deduction for qualifying volunteer firefighters, rescue squad workers, reserve officers, and more.	$3,000 ($6,000 if taxpayer and spouse both qualify).
Premarital Preparation Course	Credit for taxpayers completing a qualifying premarital preparation course within 12 months of marriage license application.	$25 ($50 for couples).
Residential Retrofit Credit	Credit for retrofitting a residence to resist hurricanes, floods, or wind damage. Includes sales tax paid on qualifying property.	Lesser of 25% of costs or $1,000; additional $1,500 sales tax credit.
SC Earned Income Tax Credit (EITC)	Full-year residents claiming the federal EITC qualify for this enhanced state credit.	125% of federal EITC; maximum federal EITC for 2024 tax year is $7,830.
Nursing Home Credit	Credit for paying certified nursing facility-level care expenses for yourself or another individual.	20% of expenses, up to $300.
Tuition Tax Credit	Credit for qualifying tuition paid to South Carolina colleges and universities.	50% of tuition paid; up to $1,500 for 2- and 4-year schools from 2018 forward.
Classroom Teacher Expenses	Credit for South Carolina classroom teachers purchasing supplies or materials, excluding those reimbursed by counties.	Up to $400 for tax year 2024 and beyond.

Source: South Carolina Department of Revenue

How to file South Carolina state income tax

South Carolina state income taxes may seem complex, but residency status, deductions, and credits are easy to navigate when you use TurboTax for tax preparation.  

Whether you want to do your taxes on your own or seek professional help, TurboTax’s expert guidance can help you file your return, maximize your deductions and credits, and keep more of your hard-earned money. Prefer hands-on advice from a local tax expert in South Carolina? Connect with a South Carolina TurboTax professional. We can even file your return for you!