Taxed Right
All Categories

South Carolina State Taxes


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 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 and Property Taxes in South Carolina

Sales Taxes – 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.

Payroll 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

Monthly Newsletter

Answers to all of your tax questions