South Carolina income tax goes up to 6% at the top bracket. Calculate your combined federal + state effective tax rate for 2026. Formula shown, sources cited — no account required.
South Carolina's income tax uses a graduated bracket structure with a top marginal rate of 6.0%, which is being reduced incrementally under recent tax reform legislation. The rate at the top bracket is relatively high for the Southeast, but the combination of a below-average cost of living and meaningful retirement income exemptions softens the overall burden for many residents. Median earners at $72,350 typically face an effective state rate of 4–5% after deductions, with the federal burden — usually the 22% marginal bracket — representing the larger piece of the total tax bill. Social Security benefits face no South Carolina state income tax, and retirees over 65 get an additional $15,000 annual deduction from other retirement income. Working-age earners do not benefit from those exemptions, but the below-average living costs and moderate state rate still produce a reasonable overall tax burden. South Carolina taxes capital gains as ordinary income at the standard marginal rate. The tax bracket calculator helps you map your income across South Carolina's current brackets and estimate your effective combined rate.
South Carolina Tax Brackets Explained (2026)
South Carolina has a state income tax with a top marginal rate of 6%. On top of federal rates (10%–37%), residents can face a combined marginal rate exceeding 35% at higher income levels. However, your effective rate is always lower than the marginal rate because only income above each threshold is taxed at that bracket's rate.
The median household in South Carolina earns $72,350/year. At that income (single filer), the federal effective rate is approximately 12–14%, bringing total income tax (federal + state) to roughly 16–18%.
How Marginal vs. Effective Rate Works
The marginal rate is the rate on your last dollar of income — it does not apply to all income. The effective rate is your total tax divided by total income. For example, someone earning $100,000 in South Carolina has a 22% federal marginal rate but an effective federal rate of roughly 15%, because the first $44,725 (2024) is taxed at 10% and 12%, not 22%.