STATE RANKING #36

Tax Facts: 

-The State of South Carolina has both Corporate income tax and personal income tax rates with maximum rates of 7.00% and 5.00%, respectively. Its property taxes are low, but has a large base regarding sales tax. Read more below.

 

7.00%

State Income Tax

State
Income
Tax

5.00%*

Cost of Setting Up A Business

state
business
tax

LOW

Property
Taxes

7.46%

Sales
Tax (average)

State Income Taxes in South Carolina

The state of South Carolina does have an individual income tax. Like most states with income tax, it is calculated on a marginal scale whose range is from 0.00% to 7.00% for 2020. The highest bracket begins with income above $15,400.

State Business Taxes in South Carolina

The state of South Carolina has two different tax rates based on the type of  business entity you own –

  • C-Corporations – have a tax rate of 5.00% on all income. 
  • Flow-thru entities (LLCs, S-Corp, etc) – have a tax rate of 3.00%

*Corporate Capital Stock Tax in South Carolina

In addition to the Corporate tax, South Carolina has a Capital Stock Tax. This capital stock tax is assessed on both types of Corporations (C Corp, S Corp).

It is assessed at $1.00 per $1,000 of capital (0.10% tax rate) plus an additional $15.

Sales Taxes in South Carolina

Like most states, South Carolina has both a state and local sales tax. Its state sales tax is 6.00% and it’s local sales tax has an average rate of 1.46% (which puts the state average 7.46%).

Broad Sales Tax Base: Similar to HawaiiNorth Dakota, and New Mexico, the State of South Carolina has increased its sales tax base to include many business-to-business personal services.

Property Taxes in South Carolina

The average property tax rate for residential property in the state of South Carolina is 0.56%, which is well below the national average. South Carolina is within the top ten least expensive states regarding property tax as a percentage of value.

Unemployment taxes in South Carolina

Unemployment taxes usually consist of three factors. They are: the wage base, the range of UI rates, number of schedules. Below is an outline of the three:

  • Wage Base – South Carolina has a wage base of $14,000
  • UI Rates – range from 0.15% to 5.46%
  • Schedules – South Carolina has a single rate schedules regarding UI

South Carolina Business Entities - LLCs

South Carolina is one of the least expensive in regards to opening an LLC. Here are some important facts:

  • South Carolina does not have an annual LLC fee, yay!
  • When you register with the state, you pay a one time fee of $110
  • Secretary of State of South Carolina website – click here
  • If you would like help setting up your LLC, we recommend using IncFile.com. They are simple and easy to use.

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