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Instructions For Form St-500 5182 - Moving To South Carolina A Tax Guide For New Residents

South Carolina Department of Revenue

Moving to South Carolina

A Tax Guide for New Residents

If you are considering a move to South Carolina or have been a resident for only a short time, you may have questions

about South Carolina’s tax structure. This brochure explains the major state and local taxes of which you should be

aware, including income, property, sales and use, motor fuel and others.

For more specific information, call or visit one of the South Carolina Department of Revenue offices listed in this

publication.

Income Tax

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

the adjustments, exemptions and deductions allowed on your federal tax return with few modifications. Your federal

taxable income is the starting point in determining your state income tax liability.

Tax Rates

Individual income tax rates range from 3% to a top rate of 7% on taxable income. Tax brackets are adjusted annually for

inflation.

Deductions

You do not pay a tax in this state on property sold in another state.

A deduction of 44% is allowed on net long-term capital gains; the South Carolina holding period is the same as the

federal.

Beginning with the first year you receive qualified retirement income and until you reach age 65, you can take a

deduction of up to $3,000. You can take this deduction for income received from any qualified retirement plan. If

both spouses receive retirement income, each spouse is entitled to a deduction.

At age 65, all residents are eligible for a deduction of up to $15,000 from income, regardless of the source. A

surviving spouse may continue to take a retirement deduction on behalf of a deceased spouse.

Reserve pay income received from the National Guard or armed forces for the 39 days of annual training and

weekend drills is exempt from tax.

Disability income from a permanent and total disability is deductible.

South Carolina does not tax Social Security benefits or railroad retirement.

Interest you receive from federal obligations is deductible.

A deduction is allowed for each child under 6. The deduction is 100% of the federal personal exemption, which is

adjusted each year for inflation.

A deduction is allowed for a special needs adopted child.

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Instructions For Form St-500 5182 - Moving To South Carolina A Tax Guide For New Residents