South Carolina Income Tax Calculator 2026 — 6.2% Top Rate

Calculate your 2026 South Carolina state income tax. Progressive rates 0%–6.2%, with retirement income deduction for seniors. See SC vs neighboring states.

$
= $6,250 / month
$
Excludes Social Security (always exempt in SC)
$
100% exempt from SC state tax
65+ get unlimited retirement income deduction
Common incomes:
$0
SC State Income Tax
$0
Retirement Deduction
$0
Federal Income Tax
0%
SC Effective Rate
$0
Retirement Tax Savings
$0
After All Taxes

SC Tax Bracket Breakdown

BracketRateIncome in BracketTax

Tax Computation Summary

How to Use This South Carolina Tax Calculator

Enter your W-2 or business income, any retirement income (pensions, IRA, 401k distributions), and Social Security. Select your age group — taxpayers 65 and older receive a full retirement income deduction in South Carolina, making this a critical input for retirees.

The Formula

Total Income = Wages + Retirement Income + Social Security
Social Security Deduction: always 100% exempt
Retirement Deduction: $10,000 (under 65) / unlimited (65+)
SC Taxable = Total Income − Federal Std Deduction − Retirement Deductions
Tax: 0% on $0–$3,460 | 3% on $3,460–$17,330 | 6.2% above $17,330

Example — Retiree, Age 67

Robert, Single, Age 67, $25,000 pension + $18,000 SS, 2026:
Social Security ($18,000): fully exempt
SC taxable base: $25,000 − $15,000 (fed std ded) = $10,000
Retirement deduction (age 65+): $10,000 — fully deducted
SC taxable income: $0 | SC state tax: $0
Tax savings vs no deduction: $288 (6.2% × $4,640 taxable)

South Carolina 2026 Rate Cut

South Carolina has been gradually reducing its top marginal rate. The rate was 7% before 2022, dropped to 6.5%, then 6.3% in 2026, and is now 6.2% for 2026. The state plans continued reductions, with a target of 6.0% by 2027, making SC increasingly competitive among southeastern states.

Extended

Retirement Tax Benefit Calculator

See how much SC's retirement income deduction saves vs other southeastern states

How South Carolina's retirement tax treatment compares to neighboring states at your income. Assumes retirement income from your inputs above.

StateSS Exempt?Retirement ExemptionState Tax on Your IncomeAnnual Savings vs SC

* Florida and Tennessee have no state income tax. Comparison uses same income inputs. Simplified — consult a tax professional for exact figures.

Frequently Asked Questions

What are South Carolina's income tax brackets for 2026?
South Carolina uses three brackets for 2026: 0% on the first $3,460, 3% on income from $3,460 to $17,330, and 6.2% on income above $17,330. The top rate was 6.3% in 2026 and is scheduled to continue decreasing annually, targeting 6.0% by 2027. South Carolina uses federal AGI as its starting point.
Does South Carolina tax Social Security benefits?
No. South Carolina fully exempts Social Security income from state taxation. Additionally, SC provides a retirement income deduction: taxpayers under age 65 may deduct up to $10,000 of retirement income (pensions, IRAs, 401(k) distributions). Taxpayers age 65 and older receive an unlimited retirement income deduction — all retirement income is exempt from SC state tax.
What is South Carolina's standard deduction?
South Carolina uses the same standard deduction as the federal return: $16,100 for single filers and $32,200 for married filing jointly in 2026. This federal standard deduction is applied to federal AGI to arrive at South Carolina taxable income. Itemizing is also allowed if itemized deductions exceed the standard deduction.
How does South Carolina treat retirement income?
South Carolina is one of the most retirement-friendly states in the South. All Social Security is exempt. For taxpayers under 65, up to $10,000 of retirement income (pensions, IRAs, 401(k)s, military retirement) is deductible. For taxpayers 65 and older, there is no limit — all such retirement income is fully deductible, effectively making SC income-tax-free for many retirees.
How does South Carolina compare to neighboring states for retirees?
South Carolina is highly competitive for retirees. Georgia exempts up to $35,000 of retirement income per person ($70,000 for couples) at any age. North Carolina taxes retirement income but exempts up to $20,000 of state/local pension income. Florida and Tennessee have no income tax. While SC's top 6.2% rate is higher than FL/TN's 0%, the full retirement exemption for those 65+ makes SC very attractive for retirees with significant pension or IRA income.