Overview of South Carolina Taxes
South Carolina has a progressive income tax system. Tax rates there cover a wide spectrum, with a top rate of 6.5% and a bottom rate of 0%.
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South Carolina Paycheck Calculator
South Carolina Paycheck Quick Facts
- South Carolina income tax rate: 0% - 6.5%
- Median household income: $63,623 (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.
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 $3,330 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 $16,680 or more is subject to South Carolina's top tax rate of 6.5%. 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.
A financial advisor can help you understand how taxes fit into your overall financial goals. Finding a financial advisor doesn't have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
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 (as of 2023). This amount increases to $610 in 2024 and $650 in 2025. If you contribute more than the year's limit to an FSA but you don’t use it all within the year, you can kiss it goodbye.
