South Carolina Income Tax Rates and Brackets

Tax Rates

South Carolina Income Tax Rates

South Carolina's two individual income tax rates for 2026 are 1.99% and 5.21%. The 1.99% rate applies to taxable income below $30,000, and the 5.21% marginal rate applies above that threshold. Each rate applies only to the portion of taxable income within that bracket. Reaching the higher bracket does not cause all of your income to be taxed at 5.21%.

South Carolina indexes its income bracket threshold under state law. The $30,000 threshold applies for 2026, and the top rate is fixed at 5.21% for this tax year. Beginning with 2027, the top rate may decrease if the revenue-growth test in Act No. 110 is met.

Deductions

South Carolina Income Tax Deductions

South Carolina deductions reduce the taxable income to which the state's tax brackets and rates are applied. Beginning in 2026, federal adjusted gross income is the starting point for the South Carolina return. Taxpayers then apply the new South Carolina Income Adjusted Deduction and other qualifying state additions, subtractions, and deductions.

South Carolina no longer follows the federal standard-versus-itemized deduction system. The state continues to provide indexed dependent deductions and other deductions for qualifying taxpayers. The following sections explain several important South Carolina deduction rules under current law for 2026.

South Carolina Income Adjusted Deduction

The South Carolina Income Adjusted Deduction, or SCIAD, replaces the federal standard deduction for state purposes beginning in 2026. The maximum deduction amounts are:

• Single: $15,000
• Married Filing Jointly: $30,000
• Married Filing Separately: $15,000
• Head of Household: $22,500
• Qualifying Surviving Spouse: $30,000

The deduction begins to decrease when federal adjusted gross income exceeds $40,000 for Single and Married Filing Separately taxpayers, $60,000 for Head of Household taxpayers, or $80,000 for joint filers and Qualifying Surviving Spouse taxpayers. It is eliminated when federal adjusted gross income reaches $95,000, $142,500, or $190,000, respectively.

South Carolina Personal Exemptions

South Carolina does not provide a separate fixed personal exemption deduction or personal exemption credit for the taxpayer or spouse under the 2026 return structure. Instead, filing status determines the maximum SCIAD amount and its income phaseout. Other deductions may still apply based on age, retirement income, military retirement income, and additional state rules.

South Carolina Dependent Exemptions

South Carolina law provides an indexed deduction for each qualifying dependent. A resident may claim an additional deduction of the same amount for each qualifying dependent who is under age six at the end of the tax year. These deductions remain separate from the SCIAD and reduce South Carolina taxable income. The indexed amount for 2026 is not yet listed in the available SCDOR materials and is expected to appear in the final SC1040 instructions.

South Carolina Retirement and Age 65 Deductions

A taxpayer may deduct up to $3,000 of qualifying retirement income before age 65 and up to $10,000 beginning in the year the taxpayer reaches age 65. A resident age 65 or older may also qualify for an age-based deduction of up to $15,000, reduced by the retirement-income deduction claimed by that taxpayer. When both spouses qualify and file jointly, the combined age-based maximum may reach $30,000.

South Carolina allows a deduction for all qualifying military retirement income included in South Carolina taxable income, without the $3,000 or $10,000 limits that apply to the general retirement-income deduction. A surviving spouse receiving qualifying military retirement income attributable to the deceased spouse may also claim the full deduction under the state rules. The military deduction generally reduces the separate retirement-income and age-based deductions otherwise available to the same taxpayer.

South Carolina Itemized Deductions

Beginning in 2026, South Carolina does not adopt the federal standard deduction or federal itemized deductions. The amount reported on federal Schedule A therefore does not transfer to Form SC1040. Taxpayers instead use the SCIAD and eligible South Carolina subtractions and deductions to calculate South Carolina taxable income.

Credits

South Carolina State Tax Credits

South Carolina offers refundable and nonrefundable tax credits that directly reduce state income tax. A refundable credit can produce or increase a refund even when no South Carolina income tax is owed. A nonrefundable credit can reduce tax to zero but cannot by itself create a refund. Eligibility depends on residency, income, filing status, qualifying expenses, and other requirements. Several important South Carolina tax credits available under current law for 2026 include:

South Carolina Earned Income Tax Credit

The nonrefundable South Carolina Earned Income Tax Credit (EITC) is limited to a maximum of $200 per return for 2026. The credit is calculated as 125% of the federal EITC, but any calculated amount over $200 is reduced to the state limit. It is available to a qualifying full-year resident who is allowed the federal credit. Taxpayers claiming the federal credit with qualifying children generally complete federal Schedule EIC.

South Carolina Child and Dependent Care Credit

The nonrefundable South Carolina Child and Dependent Care Credit is generally equal to 7% of qualifying federal child and dependent care expenses attributable to South Carolina income. The maximum credit is $210 for one qualifying person or $420 for two or more qualifying people. The credit is not available to a taxpayer using Married Filing Separately status.

South Carolina Two Wage Earner Credit

Married taxpayers filing jointly may qualify for the nonrefundable Two Wage Earner Credit when both spouses have South Carolina earned income. The credit equals 0.7% of the lesser of $50,000 or the qualifying earned income of the spouse with the lower amount. The maximum credit is $350.

Credit for Taxes Paid to Another State

A South Carolina resident whose income is taxed by both South Carolina and another state may qualify for a nonrefundable credit. The credit is limited to the lesser of the qualifying tax paid to the other state or the South Carolina tax attributable to the same income. The taxpayer generally reports the credit on SC1040TC and provides the other state's return to support the claim.

Due Dates

South Carolina State Income Tax Deadline

The deadline to file a 2026 South Carolina individual income tax return and pay any balance due is April 15, 2027. South Carolina allows a six-month filing extension through October 15, 2027. If no South Carolina income tax is due, the SCDOR accepts a valid federal filing extension without requiring a separate state extension request by the original deadline. Taxpayers who need a separate South Carolina extension may request it through MyDORWAY or file Form SC4868 by the original due date. Taxpayers expecting a balance generally must pay at least 90% of the tax due by April 15. The extension does not postpone the payment deadline, and interest and penalties may apply to unpaid balances.

If you missed a previous South Carolina filing deadline, do not assume it is too late. You may still be able to file a 2025, 2024, or 2023 return and claim any refund due. South Carolina generally does not issue a refund when a missing return is filed more than three years after it was due. Visit our South Carolina state tax forms page to find Form SC1040, instructions, and other forms for current and prior tax years.