How much does south carolina take out for taxes

An employee’s gross pay is subject to federal income tax withholding, Social Security and Medicare taxes, and South Carolina income tax. The amount of income tax withheld depends upon the employee’s filing status and the number of allowances he or she claims on Form W-4. You must withhold a flat 15 percent income tax from the gross wages of all nonresident workers.

You’ve just accepted a new position in South Carolina and then the fun part begins — figuring out how much of your income is going to taxes. As a Virginia resident, I had no idea what to expect with my new state’s tax laws or if I even had to file taxes at all. On top of this, there’s always the stress of filing on time while trying submit all of the proper paperwork.

South Carolina takes out taxes based on the total amount you make. If you’re single and make $40,000 a year, you’ll pay $2,600 in taxes. The state doesn’t have an income bracket system like some other states do. The only exception to this rule is if you’re self-employed or have a small business; in those cases, your tax rate is calculated differently (see below for more details).

There are two kinds of taxes that are taken out by the state of South Carolina: income tax and sales tax.

The state income tax ranges from 2 percent to 5 percent, depending on your income level. For example, if you make $24,000 a year, your tax would be 2 percent; if you make $48,000 or more, it would be 5 percent.

The sales tax is 4%, which means that if you buy something for $100 in South Carolina, $4 will go to the state as a sales tax.

South Carolina Paycheck Calculator

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South Carolina Paycheck Quick Facts

  • South Carolina income tax rate: 0% – 7%
  • Median household income: $62,542 (U.S. Census Bureau)
  • Number of cities that have local income taxes: 0

How Your South Carolina Paycheck Works

The reason your paychecks never quite add up to your quoted salary or hourly rate is that your employer withholds some money to pay for taxes. No matter which state you work in, you will need to pay FICA taxes and federal income taxes.

FICA taxes include Social Security and Medicare taxes. Each pay period, 6.2% of your income goes toward Social Security taxes and 1.45% toward Medicare. Your employer matches those amounts so that the total contributions to FICA taxes are double what you pay. If you have income in excess of $200,000 you will also need to pay a Medicare surtax of 0.9%. Your employer does not match this surtax.

While employers usually cover half of workers’ FICA taxes, you might find yourself responsible for paying the entire sum if you are self-employed or a contract worker. Luckily, if you do have to pay the full FICA taxes, you may be eligible to receive the employer portion in return via a tax deduction. If you’re seeking further guidance with minimizing your tax burden while maximizing your earnings, it’s always helpful to talk with a financial advisor.

When you start a new job or experience a major life change – like getting married or having a child – you have to fill out a new Form W-4. It’s your employer’s job to make sure that all of your income withholding matches up with the information you have included on this form. The current version of the W-4 includes notable revisions that have been made in recent years. It no longer uses allowances, and it requires you to enter annual dollar amounts for things like income tax credits, non-wage income, itemized and other deductions and total annual taxable wages. The form also uses a five-step process that allows filers to indicate any additional income or jobs.

If you take advantage of employer-sponsored health or life insurance, premiums you pay on these will be deducted from your paycheck as well. These payments are usually pre-tax, which means they come out before income taxes do. Employer-sponsored retirement plans, like 401(k) plans, are also pre-tax. That means you can save for retirement while simultaneously decreasing your taxable income. Accounts for medical expenses, such as health savings accounts (HSAs) are also pre-tax.

South Carolina Median Household Income

YearMedian Household Income
2021$62,542
2020$60,341
2019$62,028
2018$57,444
2017$54,537
2016$54,336
2015$46,360
2014$44,929
2013$43,563
2012$44,401

Taxpayers in the state of South Carolina fall into one of six income tax brackets. These brackets are subject to increasing tax rates with rising income levels. The state updates these brackets each year to account for inflation.

Earners making up to $3,110 in taxable income won’t need to pay any state income tax, as the bottom tax rate in South Carolina is 0%. Taxable income of $15,560 or more is subject to South Carolina’s top tax rate of 7%. All filers are subject to the same income tax brackets regardless of filing status.

Property taxes in South Carolina remain low. Mortgage rates also fall below the national average, which can make the Palmetto State a great option to buy a home. If you are looking to refinance or purchase a home, visit our South Carolina mortgage guide to understand the details about mortgages in the state.

Income Tax Brackets

South Carolina Taxable IncomeRate
$0 – $3,1100%
$3,110 – $6,2203%
$6,220 – $9,3304%
$9,330 – $12,4405%
$12,440 – $15,5606%
$15,560+7%

How You Can Affect Your South Carolina Paycheck

One way you can affect your take-home pay in South Carolina is through the information recorded on the W-4 form you submit at the beginning of a new job. If you ever want to make a change, you just need to fill out a new W-4.

If you anticipate having a big tax bill, also consider putting more of your money into pre-tax accounts. The money you put into a 401(k) or 403(b) retirement account is deducted from your paycheck before taxes are applied. By increasing your contribution to an account like this, you are lowering your taxable income, which could help you save in taxes.

Similarly, if your employer offers them, you can make use of a health savings account (HSA) or flexible spending account (FSA). The money you put into these accounts is also pre-tax, and it can be used to pay certain medical-related expenses like copays or some prescriptions. But be aware that only $500 can roll over from year to year in an FSA. That means you could lose money if you end the year with more the $500 in your FSA.

South Carolina Top Income Tax Rate

YearTop Income Tax Rate
20227.00%
20217.00%
20207.00%
20197.00%
20187.00%
20177.00%
20167.00%
20157.00%
20147.00%
20137.00%

How 2023 Sales taxes are calculated in South Carolina

The state general sales tax rate of South Carolina is 8%. Cities and/or municipalities of South Carolina are allowed to collect their own rate that can get up to 1% in city sales tax.

Every 2023 combined rates mentioned above are the results of South Carolina state rate (8%), the county rate (0% to 1%), the South Carolina cities rate (0% to 1%), and in some case, special rate (0% to 2%).

The South Carolina’s tax rate may change depending of the type of purchase. Some of the South Carolina tax type are: Consumers use, rental tax, sales tax, sellers use, lodgings tax and more.

Please refer to the South Carolina website for more sales taxes information.

South Carolina state rate(s) for 2023

6% is the smallest possible tax rate (Alcolu, South Carolina)
8% is the highest possible tax rate (Bethera, South Carolina)

The average combined rate of every zip code in South Carolina is 6.004%

Rates changes

Some changes has been made in South Carolina for county, city and/or special rates in current quarter of 2023 compared to 2022 Q1.

List of South Carolina cities and their changes (up to 15)

City NameCounty RateCity RateSpecial Rate
Alcolu1%0%1%
Ballentine1%0%1%
Bamberg1%0%1%
Batesburg0%1% (+1%)1%
Bethune1%0%1%
Bishopville1%0%1%
Blackstock1%0%1%
Blair1%0%0%
Blythewood1%0%1%
Bowman0%0%1%
Camden1%0%1%
Cameron1%0%1%
Carlisle1%0%1% (+1%)
Cassatt1%0%1%
Cayce0%0%1%

Other 2023 sales tax fact for South Carolina

As of 2023, there is 49 out of 386 cities in South Carolina that charge city sales tax for a ratio of 12.694%.

There is also 100 out of 553 zip codes in South Carolina that are being charged city sales tax for a ratio of 18.083%.

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