South Carolina Tax Climate
South Carolina offers one of the nation's most pro-business tax and incentive structures:- 5% corporate income tax, among the lowest in the nation
- No state property tax
- No local income tax
- No unitary tax on worldwide profits
- Tax credits for new jobs
- Tax credits for corporate headquarters facilities
- Tax credits for investment in infrastructure
- Tax credits for R&D
- No inventory or intangibles tax
- No wholesale tax
In South Carolina, tax and incentive policies have been guided by two strategies: to encourage investment and employment, and to reward profitability.
South Carolina's State/Local Tax Burden among nation's lowest
Taxes as a percentage of income fell from 9.9% in 1990 to 9.0% in 2004. This indicates that individual incomes in South Carolina have risen faster than state/local tax collections over the past decade.
South Carolina's Individual Income Tax Systems
South Carolina's personal income tax system features six income brackets with a top rate of 7% kicking in at a relatively low income level of $12,000. 2002 state individual income tax collections were $476 per person.
South Carolina's Corporate Income Tax Collections Per Capita, among lowest nationally
South Carolina's corporate tax is 5% on all corporate income. South Carolina permits a 15-year loss carry-forward period. This tax ranks the state 5th lowest among states levying corporate income taxes. In 2001, corporate tax collections reached $47 per capita.
South Carolina Low Sales Tax at National Median
South Carolina levies a 5% sales tax on transactions; some counties also collect sales tax, but the tax rate varies from one county to another. The state collects $613 per person in sales taxes. South Carolina's gasoline tax stands at $0.16 per gallon, while its cigarette tax stands at $0.07 per pack of 20.
South Carolina Property Taxes Modest
In South Carolina, property taxes are levied only by local government. There are no state taxes on real or personal property. Property is reappraised every five years.
In support of business, South Carolina exempts three classes of property from local property taxation:
- all inventories (raw materials, work-in-progress, and finished goods),
- all intangible property, and
- pollution control equipment.
In 2000, South Carolina's localities collected $667 per capita in taxes, or if measured as a percentage of income, $28 per $1,000 of income.
Federal Tax Burdens and Expenditures: South Carolina is a beneficiary state
South Carolina taxpayers receive among the most amount of federal funding per dollar of federal taxes paid. Per dollar of federal tax collected in 2002, South Carolina citizens received approximately $1.34 in the way of federal spending.
For additional information on bonds, grants and other economic development incentives, visit Incentives. More detailed local and state tax rates may be found in reports resulting from searches on our Web site for property or community profiles.
South Carolina offers one of the nation's most pro-business tax and incentive structures:- 5% corporate income tax, among the lowest in the nation
- No state property tax
- No local income tax
- No unitary tax on worldwide profits
- Tax credits for new jobs
- Tax credits for corporate headquarters facilities
- Tax credits for investment in infrastructure
- Tax credits for R&D
- No inventory or intangibles tax
- No wholesale tax
In South Carolina, tax and incentive policies have been guided by two strategies: to encourage investment and employment, and to reward profitability.
South Carolina's State/Local Tax Burden among nation's lowest
Taxes as a percentage of income fell from 9.9% in 1990 to 9.0% in 2004. This indicates that individual incomes in South Carolina have risen faster than state/local tax collections over the past decade.
South Carolina's Individual Income Tax Systems
South Carolina's personal income tax system features six income brackets with a top rate of 7% kicking in at a relatively low income level of $12,000. 2002 state individual income tax collections were $476 per person.
South Carolina's Corporate Income Tax Collections Per Capita, among lowest nationally
South Carolina's corporate tax is 5% on all corporate income. South Carolina permits a 15-year loss carry-forward period. This tax ranks the state 5th lowest among states levying corporate income taxes. In 2001, corporate tax collections reached $47 per capita.
South Carolina Low Sales Tax at National Median
South Carolina levies a 5% sales tax on transactions; some counties also collect sales tax, but the tax rate varies from one county to another. The state collects $613 per person in sales taxes. South Carolina's gasoline tax stands at $0.16 per gallon, while its cigarette tax stands at $0.07 per pack of 20.
South Carolina Property Taxes Modest
In South Carolina, property taxes are levied only by local government. There are no state taxes on real or personal property. Property is reappraised every five years.
In support of business, South Carolina exempts three classes of property from local property taxation:
- all inventories (raw materials, work-in-progress, and finished goods),
- all intangible property, and
- pollution control equipment.
In 2000, South Carolina's localities collected $667 per capita in taxes, or if measured as a percentage of income, $28 per $1,000 of income.
Federal Tax Burdens and Expenditures: South Carolina is a beneficiary state
South Carolina taxpayers receive among the most amount of federal funding per dollar of federal taxes paid. Per dollar of federal tax collected in 2002, South Carolina citizens received approximately $1.34 in the way of federal spending.
For additional information on bonds, grants and other economic development incentives, visit Incentives. More detailed local and state tax rates may be found in reports resulting from searches on our Web site for property or community profiles.
