South Carolina Tax Policy & Rates 2026
Income tax, sales tax, property tax, and overall tax burden for South Carolina in 2026, with political context.
No
No Income Tax
6.2% (top, decreasing to 6.0%)
Income Tax Rate
#49
Tax Burden Rank (1=highest)
#10
Property Tax Rank (1=highest)
Tax Policy Overview
South Carolina has been cutting income taxes and has low overall tax burden. The state offers generous tax incentives for manufacturing investment (BMW, Volvo, Boeing) and has attracted significant foreign direct investment. Property taxes are low.
Key Tax Rates
| Tax Type | Rate / Status |
|---|---|
| Income Tax | 6.2% (top, decreasing to 6.0%) |
| No Income Tax | No |
| Sales Tax | 6.0% (+local up to 9%) |
| No Sales Tax | No |
| Corporate Tax | 5.0% |
| Property Tax Rank | #10 nationally (1=highest) |
| Overall Tax Burden Rank | #49 nationally (1=highest) |
Political Context
South Carolina Republicans have used tax incentives and low overall taxes to attract manufacturers. Income tax cuts are ongoing. The state is competitive with Georgia and North Carolina for business investment. The tax structure rewards businesses that invest locally.