S. Carolina
Taxes and business formation • USA 2025–2026
LLC in S. Carolina
Corporation in S. Carolina
Tax system of S. Carolina
Income Tax
South Carolina levies a personal income tax on individuals on a progressive scale. Rates range from 0% to 6.5% depending on income level. Since 2023, a program of gradual reductions to the top rate has been in effect, aimed at making the state's tax system more competitive. At the same time, the state provides a number of tax deductions and benefits, including for retirees and homeowners.
Sales Tax
South Carolina's base sales tax rate is 6%. In addition, counties may impose local surtaxes, bringing the total rate up to as much as 9%. Sales tax applies to the sale of most goods and to certain types of services, including rentals and repairs. The state has specific rules for taxing online sales, subscription deliveries, and remote services. We provide services for business registration, obtaining a Sales Tax Certificate, and preparing and filing the Sales and Use Tax Return. We advise entrepreneurs on registration, rate calculation, and reporting specifics.
Property Tax
The property tax rate varies depending on the type of property and its location. For residential real estate (primary residence), a reduced rate of about 0.56% applies, making the state one of the more affordable in terms of homeownership. However, rates are higher for commercial real estate and rental properties.
Business Taxes
South Carolina levies a Corporate Income Tax of 5% on taxable profit. This tax applies to C-corporations, while S-corporations and LLCs are exempt from corporate tax but are required to file annual reports. Companies doing business in South Carolina are required to file an annual Public Information Report by May 15 of each year.
Excise Taxes
South Carolina levies excise taxes on items such as gasoline, alcohol, and tobacco products. In recent years there has been a trend toward increases, especially on fuel, as part of road infrastructure funding.
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