The maximum credit is $850/year for four-year schools and $350/year for two-year schools. A refundable tuition credit for up to 25% for tuition paid to South Carolina colleges may be available for those who qualify.A deduction is allowed for a special needs adopted child.A 100% deduction of the federal personal exemption is allowed for each child under the age of six.Interest from federal obligations is deductible.South Carolina does not tax Social Security benefits or railroad retirement.Disability income from a total and permanent disability is deductible.Reserve pay income received from the National Guard or armed forces for annual training and weekend drills is exempt from tax.See the SC1040 Instructions for more information. At age 65, all residents are eligible for a deduction from any source of income.Beginning with the first year you receive qualified retirement income and until you reach age 65, you deduct a portion of your qualified retirement plan.A deduction of 44% is allowed on net long-term capital gains the South Carolina holding period is the same as the federal.You do not pay taxes in this state on property sold in another state.Tax brackets are adjusted annually for inflation. Individual income tax rates range from 3% to a top rate of 7% on taxable income. Your federal taxable income is the starting point in determining your state income tax liability. South Carolina accepts the adjustments, exemptions and deductions allowed on your federal tax return with few modifications.

South Carolina has a simplified income tax structure which follows the federal income tax laws.

South carolina income tax brackets 2021